Croatia vs Italy
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇭🇷 Croatia — County & Municipal Surtax
Croatia's 20 counties (županije) and 556 local government units levy prirez (surtax) on income tax of 0%–18%. Zagreb applies the maximum 18% surtax. The surtax is calculated on the national income tax liability. Property transfer tax is 3% on real estate. Municipalities may levy local fees. Croatia adopted the euro in 2023, replacing the kuna. The abolition of the second income tax bracket (36%) in 2024 simplified the system considerably.
🇮🇹 Italy — Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.
Croatia vs Italy: Key Tax Differences (2026)
💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (20–30% vs 23–43%). 🇭🇷 Croatia is more favourable for high earners.
🛒 VAT/Sales Tax: Croatia has a higher consumption tax (5–25% vs 4–22%).
🏢 Corporate Tax: 🇭🇷 Croatia offers a lower corporate rate (18% vs 24%), which can influence business location decisions.
📈 Capital Gains: 🇭🇷 Croatia taxes investment gains at a lower rate (10% vs 26%), benefiting investors.