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.

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

+$6,976

Effective 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

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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Related Articles

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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