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Spain vs Italy Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Spain47%
Italy43%Lower
Corporate Tax
Spain25%Lower
Italy27.9%
Capital Gains
Spain28%
Italy26%Lower
VAT / Sales Tax
Spain21%Lower
Italy22%
| Category | Spain | Italy |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 47% | 43% |
| Corporate Tax | 25% | 27.9% |
| Capital Gains | 28% | 26% |
| VAT / Sales Tax | 21% | 22% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | Yes | No |
| Tax Treaties | 93 | 100 |
| Currency | EUR | EUR |
The bottom line: Spain vs Italy
Spain and Italy are evenly matched on the four headline taxes, each coming out lower on two of them — so the better choice depends on your specific income mix. Spain runs a progressive tax system, while Italy uses a progressive one. Italy has the wider tax-treaty network (100 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Italy is lower (47% vs 43%)
- Corporate tax: Spain is lower (25% vs 27.9%)
- Capital gains tax: Italy is lower (28% vs 26%)
- VAT / sales tax: Spain is lower (21% vs 22%)