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Saudi Arabia vs Italy
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇸🇦 Saudi Arabia
vs
🇮🇹 Italy
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0% / 20%
No personal income tax; competitive positioning maintained
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
15% VAT stable; GCC harmonization efforts
No change
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
20%
20% CIT; special economic zone (NEOM etc.) benefits
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
20%
20% via CIT framework
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~22.5%
GOSI contribution rates stable; expat levy increasing
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇸🇦 Saudi ArabiaZakat, Salam & Municipality Fees

Saudi Arabia has no local or regional income taxes on individuals — the Kingdom operates as a unitary state for tax purposes. Municipalities (amanaat) collect fees for commercial licences, land use, and services. Zakat (Islamic wealth levy at 2.5% of Zakat base) applies to Saudi nationals and GCC citizens with business income, instead of income tax. Foreign companies pay CIT at 20%. The government levies municipality fees of 2.5% on commercial and residential rents. Vision 2030 is transforming the fiscal landscape.

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Saudi Arabia vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (0% / 20% vs 23–43%). 🇸🇦 Saudi Arabia is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (15% vs 4–22%).

🏢 Corporate Tax: 🇸🇦 Saudi Arabia offers a lower corporate rate (20% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇸🇦 Saudi Arabia taxes investment gains at a lower rate (20% vs 26%), benefiting investors.

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All 🇸🇦 Saudi Arabia comparisons →All 🇮🇹 Italy comparisons →