Tax Rate Comparison · 2026

Italy vs Bulgaria: Tax Rates Compared

Compare Italy and Bulgaria on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 43% (Italy) vs 10% (Bulgaria). Includes take-home pay estimates, special regimes, and expat guidance for 2026.

Country A
Italy
Top income tax: 43%
Corporate: 24%
VAT: 22% · CGT: 26%
VS
Country B
Bulgaria
Top income tax: 10%
Corporate: 10%
VAT: 20% · CGT: 10%

Full Tax Rate Comparison

Tax TypeItalyBulgariaLower Rate
Top Income Tax43%10%Bulgaria
Bottom Income Tax23%10%Bulgaria
Corporate Tax24%10%Bulgaria
VAT / GST22%20%Bulgaria
Capital Gains Tax26%10%Bulgaria
Social Security (Emp)9.5%13.8%Italy
Dividend Tax26%5%Bulgaria
Tax Treaties9668Italy

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Italy Take-Home
€62,560
Bulgaria Take-Home
€79,720
Annual Difference
+€17,160

Verdict

Overall Tax Burden
Bulgaria has a lower overall tax burden
Bulgaria scores lower on combined tax burden (10 vs 34). Top income tax: 10% vs 43% in Italy. Corporate: 10% vs 24%. For high earners and entrepreneurs, Bulgaria can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorItalyBulgaria
Territorial TaxationNoNo
Digital Nomad VisaYesYes
Wealth TaxNoNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
No major special regimes for these two countries

Frequently Asked Questions

Which country has lower taxes: Italy or Bulgaria?
Italy has a top income tax rate of 43% and corporate tax of 24%. Bulgaria has 10% and 10% respectively. On €100k gross, estimated take-home is €62,560 in Italy vs €79,720 in Bulgaria. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Italy or Bulgaria better for expats and digital nomads?
Italy uses a worldwide tax system. Bulgaria uses a worldwide tax system. The best choice depends on income type, desired residency duration, and lifestyle preferences.
What is the corporate tax difference between Italy and Bulgaria?
The statutory corporate tax rate is 24% in Italy and 10% in Bulgaria. Effective rates can differ significantly due to deductions, loss carry-forwards, and R&D credits. Both countries may offer reduced rates or special regimes for SMEs or qualifying businesses.
Italy Full Tax Guide Bulgaria Full Tax Guide More Tax Comparisons Special Tax Regimes
Disclaimer: Rates shown are statutory rates for 2026. Effective rates vary with deductions and individual circumstances. Not tax advice.