Italy vs Spain — Tax Comparison 2026
Italian taxes vs Spanish taxes, at a glance. 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 Italy or Spain?
For most remote workers, taxes are higher in Italy. At $100,000, an employee in Spain takes home $64,893 versus $60,466 in Italy — a difference of $4,427 per year. For contractors, Italy comes out ahead: $71,015 versus $62,861. 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: 1.1160, EUR: 1.1160). Local currency figures are exact.
| Metric | Italy | Spain |
|---|---|---|
| Gross (EUR/EUR) | 89.607 € | 89.607 € |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | 27.190 € | 27.480 € |
| Social Security | 8235 € | 3979 € |
| Net (EUR/EUR) | 54.182 € | 58.148 € |
| Net (USD) | $60,466 | $64,893+$4,427 |
| Effective Rate | 39.5% | 35.1% |
Gross (EUR/EUR)
Italy
89.607 €
Spain
89.607 €
Gross (USD)
Italy
$100,000
Spain
$100,000
Income Tax
Italy
27.190 €
Spain
27.480 €
Social Security
Italy
8235 €
Spain
3979 €
Net (EUR/EUR)
Italy
54.182 €
Spain
58.148 €
Net (USD)
Italy
$60,466
Spain
$64,893
+$4,427Effective Rate
Italy
39.5%
Spain
35.1%
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 $4,427 more per year ($369/mo) as an employee
Italy gives you $8,154 more per year ($680/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) | Italy net | Spain net | Who keeps more |
|---|---|---|---|
| $60,000 | $39,744 (33.8%) | $42,142 (29.8%) | Spain (+$2,398) |
| $100,000 | $60,466 (39.5%) | $64,893 (35.1%) | Spain (+$4,427) |
| $150,000 | $87,056 (42.0%) | $92,393 (38.4%) | Spain (+$5,337) |
Contractors / Self-Employed
| Gross (USD) | Italy net | Spain net | Who keeps more |
|---|---|---|---|
| $60,000 | $42,609 (29.0%) | $40,344 (32.8%) | Italy (+$2,265) |
| $100,000 | $71,015 (29.0%) | $62,861 (37.1%) | Italy (+$8,154) |
| $150,000 | $106,523 (29.0%) | $90,362 (39.8%) | Italy (+$16,161) |
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How Taxes Work
Italy Tax System
Employee
- ·IRPEF 2026 (3 brackets: 23%/33%/43%).
- ·Employee INPS contributions are deducted before tax.
- ·The employment credit (detrazione lavoro dipendente, €1,955 up to €15,000, phasing out by €50,000, +€65 for €25,000–35,000) and the additional €1,000 credit for €20,000–32,000 (phasing out by €40,000) are applied.
- ·The tax-free bonus for incomes up to €20,000 is not.
- ·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.
- ·INPS contributions are deducted from the forfettario income before the 15% substitute tax.
Spain Tax System
Employee
- ·IRPF progressive tax (state + avg. regional combined, 19%-47%).
- ·Actual rates vary by autonomous community.
- ·The €5,550 personal minimum is taxed at the scale and subtracted from the tax (worth €1,054.50), not deducted from income.
- ·Employee social security contributions and a flat €2,000 'other expenses' deduction (Art. 19.2 LIRPF) reduce the taxable base.
- ·The low-income work-income reduction (reducción por rendimientos del trabajo) is not modelled.
- ·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 (RETA) is 31.5% of a contribution base set by monthly net income band (15 bands, net income after contributions less a 7% generic-expense allowance); the calculator uses the minimum base of the band, which most autónomos choose.
- ·€2,000 gastos de difícil justificación deduction (5% of net income, capped).
- ·The €5,550 personal minimum applies as for employees (worth €1,054.50 off the tax).
- ·Autónomo social security contributions are deductible from the taxable base.
- ·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
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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 (about 8.7% of revenue once INPS is deducted) for freelancers under EUR 85,000.
- ·Spanish autónomos pay progressive income tax plus social security set by income band.
- ·Below the forfettario limit Italy is cheaper for contractors: about 29% vs 31% effective at $50K.
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 6 IRPF brackets (19%-47%).
- ·At $100K, Spain leaves an employee about 4 points more (about 35% vs 39% effective); the bigger difference is in contractor treatment.