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Spain vs Italy
Tax Rate Comparison

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

🇪🇸 Spain
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
19–47%
National rates stable; community variation continues
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–21%
Basic food VAT returning toward normal rates
No change
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
25%
25% standard; digital services levy discussions
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
19–28%
Progressive savings tax maintained
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~37.2%
MEI surcharge continues gradual increase to 2032
+0.2pp vs 2025
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇪🇸 SpainAutonomous Community & Municipal Taxes

Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto económico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.

🇮🇹 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.

Spain vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇪🇸 Spain has a higher top income tax rate (19–47% vs 23–43%). 🇮🇹 Italy is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–21% vs 4–22%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇮🇹 Italy taxes investment gains at a lower rate (26% vs 28%), benefiting investors.

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