Tax Rate Comparison · 2026

Italy vs Sweden: Tax Rates Compared

Compare Italy and Sweden on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 43% (Italy) vs 57.2% (Sweden). 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
Sweden
Top income tax: 57%
Corporate: 20%
VAT: 25% · CGT: 30%

Full Tax Rate Comparison

Tax TypeItalySwedenLower Rate
Top Income Tax43%57.2%Italy
Bottom Income Tax23%0%Sweden
Corporate Tax24%20.6%Sweden
VAT / GST22%25%Italy
Capital Gains Tax26%30%Italy
Social Security (Emp)9.5%7%Sweden
Dividend Tax26%30%Italy
Tax Treaties9685Italy

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Italy Take-Home
€62,560
Sweden Take-Home
€55,820
Annual Difference
+€6,740

Verdict

Overall Tax Burden
Italy has a lower overall tax burden
Italy scores lower on combined tax burden (34 vs 41). Top income tax: 43% vs 57.2% in Sweden. Corporate: 24% vs 20.6%. For high earners and entrepreneurs, Italy can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorItalySweden
Territorial TaxationNoNo
Digital Nomad VisaYesNo
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 Sweden?
Italy has a top income tax rate of 43% and corporate tax of 24%. Sweden has 57.2% and 20.6% respectively. On €100k gross, estimated take-home is €62,560 in Italy vs €55,820 in Sweden. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Italy or Sweden better for expats and digital nomads?
Italy uses a worldwide tax system. Sweden 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 Sweden?
The statutory corporate tax rate is 24% in Italy and 20.6% in Sweden. 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 Sweden 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.