Tax Rate Comparison · 2026

Italy vs Ireland: Tax Rates Compared

Compare Italy and Ireland on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 43% (Italy) vs 40% (Ireland). 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
Ireland
Top income tax: 40%
Corporate: 12%
VAT: 23% · CGT: 33%

Full Tax Rate Comparison

Tax TypeItalyIrelandLower Rate
Top Income Tax43%40%Ireland
Bottom Income Tax23%20%Ireland
Corporate Tax24%12.5%Ireland
VAT / GST22%23%Italy
Capital Gains Tax26%33%Italy
Social Security (Emp)9.5%4%Ireland
Dividend Tax26%51%Italy
Tax Treaties9674Italy

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Italy Take-Home
€62,560
Ireland Take-Home
€70,000
Annual Difference
+€7,440

Verdict

Overall Tax Burden
Ireland has a lower overall tax burden
Ireland scores lower on combined tax burden (30 vs 34). Top income tax: 40% vs 43% in Italy. Corporate: 12.5% vs 24%. For high earners and entrepreneurs, Ireland can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorItalyIreland
Territorial TaxationNoNo
Digital Nomad VisaYesNo
Wealth TaxNoNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
IrelandSARP30% of income exempt5 years

Frequently Asked Questions

Which country has lower taxes: Italy or Ireland?
Italy has a top income tax rate of 43% and corporate tax of 24%. Ireland has 40% and 12.5% respectively. On €100k gross, estimated take-home is €62,560 in Italy vs €70,000 in Ireland. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Italy or Ireland better for expats and digital nomads?
Italy uses a worldwide tax system. Ireland uses a worldwide tax system and offers the SARP (30% of income exempt, 5 years). The best choice depends on income type, desired residency duration, and lifestyle preferences.
What is the corporate tax difference between Italy and Ireland?
The statutory corporate tax rate is 24% in Italy and 12.5% in Ireland. 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 Ireland 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.