Italy vs Malta — Tax Comparison 2026
Italy: 23%–43% across 3 brackets. Malta: 0%–35% across 4 brackets. Compare take-home pay side by side for employees and contractors.
Are taxes higher in Italian or Malta?
For most remote workers, taxes are higher in Italy. At $100,000, an employee in Malta takes home $72,409 versus $56,713 in Italy — a difference of $15,696 per year. For contractors, Malta comes out ahead: $70,750 versus $45,965.
Estimates based on 2026 rates and approximate exchange rates. Actual take-home varies by individual circumstances.
USD amounts use approximate exchange rates (EUR: 1.1414, EUR: 1.1414). Local currency figures are exact.
| Metric | Italy | Malta |
|---|---|---|
| Gross (EUR/EUR) | 87.614 € | €87,614 |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | 29.874 € | €21,265 |
| Social Security | 8052 € | €2,908 |
| Net (EUR/EUR) | 49.688 € | €63,441 |
| Net (USD) | $56,713 | $72,409+$15,696 |
| Effective Rate | 43.3% | 27.6% |
Gross (EUR/EUR)
Italy
87.614 €
Malta
€87,614
Gross (USD)
Italy
$100,000
Malta
$100,000
Income Tax
Italy
29.874 €
Malta
€21,265
Social Security
Italy
8052 €
Malta
€2,908
Net (EUR/EUR)
Italy
49.688 €
Malta
€63,441
Net (USD)
Italy
$56,713
Malta
$72,409
+$15,696Effective Rate
Italy
43.3%
Malta
27.6%
Where identifiable, mandatory health contributions are shown separately. For other countries, health coverage is included in the Social Security amount.
Bottom Line
At $100,000/year income
Malta gives you $15,696 more per year ($1,308/mo) as an employee
Malta gives you $24,785 more per year ($2,065/mo) as a contractor
Take-Home Pay at $60K, $100K and $150K
Net income after income tax and social contributions, converted to USD at approximate exchange rates. Effective rate in parentheses.
Employees
| Gross (USD) | Italian net | Malta net | Who keeps more |
|---|---|---|---|
| $60,000 | $37,588 (37.4%) | $45,561 (24.1%) | Malta (+$7,973) |
| $100,000 | $56,713 (43.3%) | $72,409 (27.6%) | Malta (+$15,696) |
| $150,000 | $81,575 (45.6%) | $104,909 (30.1%) | Malta (+$23,334) |
Contractors / Self-Employed
| Gross (USD) | Italian net | Malta net | Who keeps more |
|---|---|---|---|
| $60,000 | $27,579 (32.0%) | $43,901 (26.8%) | Malta (+$16,322) |
| $100,000 | $45,965 (32.0%) | $70,750 (29.3%) | Malta (+$24,785) |
| $150,000 | $68,948 (32.0%) | $103,250 (31.2%) | Malta (+$34,302) |
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How Taxes Work
Italy Tax System
Employee
- ·IRPEF 2026 (3 brackets: 23%/33%/43%).
- ·This is a conservative estimate — employment tax credit (detrazione lavoro dipendente, up to €1,955) is not included and would reduce tax for incomes below ~€50,000.
- ·Regional and municipal surcharges (~1.5-3% combined, varies by location) are also not included.
- ·INPS employee contribution: 9.19%, capped at €122,295.
Contractor
- ·Modeled as regime forfettario (flat-tax regime for freelancers with revenue under €85,000).
- ·15% substitute tax on presumed income (5% rate for first 5 years of activity not modeled).
- ·Profitability coefficient: 78% (typical for IT/consulting — ATECO codes 62-74).
- ·INPS gestione separata: 26.07% on presumed income.
- ·If you exceed €85,000 revenue or use regime ordinario, standard IRPEF brackets apply with higher INPS contributions.
Malta Tax System
Employee
- ·2026 single taxpayer rates.
- ·4 brackets: 0% (up to €12,000), 15% (€12,001–€16,000), 25% (€16,001–€60,000), 35% (above €60,000).
- ·Married/parent rates differ.
- ·SSC: 10% of salary, maximum €55.93/week (~€2,908/year) for those born after 1 Jan 1962.
- ·Non-domiciled residents taxed on remittance basis only — foreign income not remitted to Malta is generally not taxed.
- ·Nomad Residence Permit holders: 0% tax year 1, 10% flat rate thereafter (special regime, not modeled).
Contractor
- ·Self-employed (Class 2 SSC).
- ·Same 4 progressive brackets.
- ·SSC: 15% of prior-year net income, maximum €83.89/week (~€4,362/year).
- ·Business expenses deducted from actual receipts (no flat rate).
- ·Non-domiciled: remittance basis (only income remitted to Malta is taxed).
- ·Minimum €5,000 tax if foreign income ≥€35,000 not fully remitted.
Full Italy Tax Calculator →
Detailed breakdown with custom income
Full Malta Tax Calculator →
Detailed breakdown with custom income
Visa Options
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Frequently Asked Questions
How do Malta and Italy's tax rates compare for remote workers?
- ·Italy's standard IRPEF rates go up to 43%, but the forfettario regime offers 15% (or 5% for first 5 years) on revenue up to €85,000.
- ·Malta's standard rates go up to 35%, but the Nomad Residence Permit offers 0% for year 1 and 10% flat thereafter.
- ·For qualifying digital nomads, Malta's NRP is significantly cheaper than Italy's forfettario.
Which has a better digital nomad visa — Italy or Malta?
- ·Malta's Nomad Residence Permit requires €42,000/year income and offers a clear tax advantage (0% year 1, 10% flat).
- ·Italy's DN Visa requires €28,000/year — a lower bar — but doesn't automatically provide special tax rates (forfettario has eligibility restrictions).
- ·Malta's English-speaking environment is a plus; Italy offers more diverse cities and culture.
How does social security compare between Italy and Malta?
- ·Italy's INPS for self-employed under forfettario is ~26.07% (with a 35% discount for first 3 years).
- ·Malta's self-employed SSC is 15%, capped at ~€4,362/year — dramatically lower.
- ·For employees, Italy's rate is ~9.19% vs Malta's 10%, but Italy has no practical cap while Malta caps at ~€2,908/year.
- ·Malta wins on SS costs at any income level.