Italy vs Spain — Tax Comparison 2026

Italy: 23%–43% across 3 brackets. Spain: 19%–47% across 6 brackets. Compare take-home pay side by side for employees and contractors.

Are taxes higher in Italian or Spanish?

For most remote workers, taxes are higher in Italy. At $100,000, an employee in Spain takes home $63,789 versus $56,810 in Italy — a difference of $6,979 per year. For contractors, Italy comes out ahead: $45,965 versus $44,288. Note the winner flips between employees and contractors.

Estimates based on 2026 rates and approximate exchange rates. Actual take-home varies by individual circumstances.

$

USD amounts use approximate exchange rates (EUR: 1.1538, EUR: 1.1538). Local currency figures are exact.

Gross (EUR/EUR)

Italy

86.670 €

Spain

86.670 €

Gross (USD)

Italy

$100,000

Spain

$100,000

Income Tax

Italy

29.468 €

Spain

27.406 €

Social Security

Italy

7965 €

Spain

3979 €

Net (EUR/EUR)

Italy

49.237 €

Spain

55.286 €

Net (USD)

Italy

$56,810

Spain

$63,789

+$6,979

Effective Rate

Italy

43.2%

Spain

36.2%

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

Spain gives you $6,979 more per year ($582/mo) as an employee

Italy gives you $1,677 more per year ($140/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 netSpanish netWho keeps more
$60,000$37,686 (37.2%)$41,229 (31.3%)Spanish (+$3,543)
$100,000$56,810 (43.2%)$63,789 (36.2%)Spanish (+$6,979)
$150,000$81,532 (45.6%)$91,289 (39.1%)Spanish (+$9,757)

Contractors / Self-Employed

Gross (USD)Italian netSpanish netWho keeps more
$60,000$27,579 (32.0%)$24,713 (58.8%)Italian (+$2,866)
$100,000$45,965 (32.0%)$44,288 (55.7%)Italian (+$1,677)
$150,000$68,948 (32.0%)$71,788 (52.1%)Spanish (+$2,840)
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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.
Spain Tax System

Employee

  • ·IRPF progressive tax (state + avg. regional combined, 19%-47%).
  • ·Actual rates vary by autonomous community.
  • ·Employee SS ~6.50% (incl. 0.15% MEI), capped at €61,214 base.
  • ·New residents may qualify for the Beckham Law (24% flat rate for up to 6 years) — see our Spain visa page for details.

Contractor

  • ·Autónomo regime (estimación directa simplificada).
  • ·Self-employed SS ~31.50% on contribution base (capped at €61,214).
  • ·Actual base depends on income tranche.
  • ·€2,000 gastos de difícil justificación deduction (5% of net income, capped).
  • ·Toggle 'Ley Beckham' to see the 24% flat rate available to new tax residents for up to 6 years — applies to income tax only, the 31.5% SS remains unchanged.

Full Italy Tax Calculator →

Detailed breakdown with custom income

Full Spain Tax Calculator →

Detailed breakdown with custom income

Visa Options

Italy

Digital Nomad Visa (Lavoratore da Remoto) EUR 28,000/yr

View Guide →

Spain

Digital Nomad Visa (Ley de Startups) EUR 2,849/mo

View Guide →

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Frequently Asked Questions

Which has better tax treatment for freelancers — Italy or Spain?
  • ·Italy's regime forfettario offers 15% flat tax on 78% of income (effective ~12%) for freelancers under EUR 85,000.
  • ·Spain's autonomo system charges 31.5% social security on top of progressive income tax.
  • ·Italy is significantly cheaper for contractors below the forfettario threshold.
Do Italy and Spain both have digital nomad visas?
  • ·Yes.
  • ·Italy's Digital Nomad Visa requires EUR 28,000/year income.
  • ·Spain's requires EUR 2,849/month (~EUR 34,200/year).
  • ·Italy also offers the forfettario flat tax regime.
  • ·Spain has the Beckham Law (24% flat tax).
  • ·Both provide EU residency pathways.
How do employee taxes compare between Italy and Spain?
  • ·Italy has 3 IRPEF brackets (23%-43%) plus regional/municipal surcharges.
  • ·Spain has 5 IRPF brackets (19%-47%).
  • ·Social security is similar for employees.
  • ·At $100K, employee take-home is fairly close between the two — the big difference is in contractor treatment.

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