Italy
EuropePortugal
EuropeItaly vs Portugal Tax Comparison
Summary
4
🇮🇹 Italy
0
Ties
3
🇵🇹 Portugal
🇮🇹 Italy has lower tax rates in more categories
Tax Rates Comparison
| Category | 🇮🇹Italy | 🇵🇹Portugal |
|---|---|---|
| Top Income Tax Rate | 43%Lower | 48% |
| Corporate Tax Rate | 24% | 21%Lower |
| VAT / Sales Tax | 22%Lower | 23% |
| Capital Gains Tax | 26%Lower | 28% |
| Employee Social Security | 10%Lower | 11% |
| Employer Social Security | 30% | 23.75%Lower |
| Self-Employed Social Security | 26.07% | 21.4%Lower |
Living Indicators
| Category | 🇮🇹Italy | 🇵🇹Portugal |
|---|---|---|
| Cost of Living Index | 58 | 46Lower |
| Quality of Life Index | 66Lower | 71 |
| Tax Treaties | 100 | 79Lower |
Income Tax Brackets
Italy
Plus regional (1.23-3.33%) and municipal (0-0.9%) surcharges.
Portugal
Plus solidarity surcharge of 2.5% on income over 80k and 5% over 250k.
Special Tax Regimes
Italy
Flat Tax for New Residents
100,000 EUR lump-sum tax on worldwide income for new Italian tax residents. 25,000 EUR for each family member.
Regime Forfettario
15% flat tax (5% first 5 years for new activities) on business income with forfait expense deduction.
Portugal
NHR 2.0 (Scientific Research Incentive)
Replaced original NHR in 2024. 20% flat tax on eligible employment/self-employment income for qualified professionals in scientific research and innovation.
Golden Visa
Residency-by-investment program offering path to EU residency and citizenship.
Digital Nomad Visa
Digital nomad visa introduced 2024. Minimum annual income of 28,000 EUR. Valid for 1 year, renewable.
D8 Digital Nomad Visa: minimum income of 3,510 EUR/month. Valid for 1 year, renewable.
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.
Data last updated: Italy (2024-01) · Portugal (2024-01)