Italian vs Spanish — 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.
USD amounts use approximate exchange rates (EUR: 1.1726, EUR: 1.1726). Local currency figures are exact.
| Metric | Italy | Spain |
|---|---|---|
| Gross (EUR/EUR) | 85.279 € | 85.279 € |
| Gross (USD) | $99,999 | $99,999 |
| Income Tax | 28.870 € | 26.780 € |
| Social Security | 7837 € | 3979 € |
| Net (EUR/EUR) | 48.572 € | 54.521 € |
| Net (USD) | $56,956 | $63,932+$6,976 |
| Effective Rate | 43.0% | 36.1% |
Gross (EUR/EUR)
Italy
85.279 €
Spain
85.279 €
Gross (USD)
Italy
$99,999
Spain
$99,999
Income Tax
Italy
28.870 €
Spain
26.780 €
Social Security
Italy
7837 €
Spain
3979 €
Net (EUR/EUR)
Italy
48.572 €
Spain
54.521 €
Net (USD)
Italy
$56,956
Spain
$63,932
+$6,976Effective Rate
Italy
43.0%
Spain
36.1%
Bottom Line
At $100,000/year income
Spain gives you $6,976 more per year ($581/mo) as an employee
Italy gives you $1,852 more per year ($154/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.
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).
- ·Beckham Law (24% flat) 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
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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.