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United Arab Emirates vs Italy
Tax Rate Comparison

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

🇦🇪 United Arab Emirates
vs
🇮🇹 Italy
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0%
No personal income tax; unlikely to change short-term
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇦🇪 United Arab EmiratesEmirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

🇮🇹 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.

United Arab Emirates vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (0% vs 23–43%). 🇦🇪 United Arab Emirates is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (5% vs 4–22%).

🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇦🇪 United Arab Emirates taxes investment gains at a lower rate (0% vs 26%), benefiting investors.

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