Italy vs Portugal — Tax Comparison 2026
Italy: 23%–43% across 3 brackets. Portugal: 13%–48% across 9 brackets. Compare take-home pay side by side for employees and contractors.
At $100,000 equivalent income, an employee in Italy takes home $56,846 vs $56,550 in Portugal. For contractors, take-home is $45,965 in Italy compared to $36,350 in Portugal.
Estimates based on 2026 rates and approximate exchange rates. Actual take-home varies by individual circumstances.
USD amounts use approximate exchange rates (EUR: 1.1585, EUR: 1.1585). Local currency figures are exact.
| Metric | Italy | Portugal |
|---|---|---|
| Gross (EUR/EUR) | 86.316 € | 86 316 € |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | 29.316 € | 28 009 € |
| Social Security | 7932 € | 9495 € |
| Net (EUR/EUR) | 49.068 € | 48 812 € |
| Net (USD) | $56,846+$296 | $56,550 |
| Effective Rate | 43.1% | 43.5% |
Gross (EUR/EUR)
Italy
86.316 €
Portugal
86 316 €
Gross (USD)
Italy
$100,000
Portugal
$100,000
Income Tax
Italy
29.316 €
Portugal
28 009 €
Social Security
Italy
7932 €
Portugal
9495 €
Net (EUR/EUR)
Italy
49.068 €
Portugal
48 812 €
Net (USD)
Italy
$56,846
+$296Portugal
$56,550
Effective Rate
Italy
43.1%
Portugal
43.5%
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
Italy gives you $296 more per year ($25/mo) as an employee
Italy gives you $9,615 more per year ($801/mo) as a contractor
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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 €120,607.
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.
Portugal Tax System
Employee
- ·IRS 2026: 9 brackets (12.5%-48%).
- ·Dedução específica €4,587.
- ·Employee SS 11% (no cap).
Contractor
- ·Simplified regime (regime simplificado).
- ·IRS on 75% of income (coeficiente 0.75, Art.
- ·31 CIRS).
- ·SS: 21.4% on 70% of income, capped at 12×IAS/month.
- ·No dedução específica for Category B.
Full Italy Tax Calculator →
Detailed breakdown with custom income
Full Portugal Tax Calculator →
Detailed breakdown with custom income
Visa Options
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Frequently Asked Questions
Which has better special tax regimes — Italy or Portugal?
- ·Italy's regime forfettario offers 15% flat tax on 78% of service income (effective ~12%) for freelancers under EUR 85,000.
- ·Portugal's IFICI program (successor to NHR) offers 20% flat tax on certain professions for 10 years.
- ·For contractors, Italy's forfettario is cheaper; for employees, Portugal's IFICI can be better.
How do contractor costs compare between Italy and Portugal?
- ·Under forfettario, Italian contractors pay ~12% effective income tax plus 26.07% INPS on 78% of revenue.
- ·Portuguese contractors pay progressive rates on 75% of income plus 21.4% Seguranca Social on 70% of income.
- ·Italy is generally cheaper for contractors under EUR 85,000.
Which is better for digital nomad visas — Italy or Portugal?
- ·Portugal's D8 visa is more established, requires EUR 3,680/month, and has a well-known process.
- ·Italy's DN visa is newer, requires EUR 28,000/year (~EUR 2,333/month), with a lower income bar.
- ·Portugal has a clearer path to citizenship (5 years).
- ·Both offer EU residency.