WorldTax CompareAll Comparisons

Italy vs Bulgaria
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇹 Italy
vs
🇧🇬 Bulgaria
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
23–43%
3-bracket IRPEF reform targeting completion
No change
10%
10% flat; EU lowest; reform pressure growing with deficits
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
9–20%
Standard 20%; 9% for hospitality
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
10%
10% maintained; Pillar Two compliance active
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
10%
10% flat
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~32.7%
Pension system under significant pressure
No change
State, Regional & Local Taxes

🇮🇹 ItalyRegional & 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%.

🇧🇬 BulgariaMunicipal Taxes

Bulgaria's 265 municipalities set local tax rates within nationally defined bands. Property tax (danuk varhu nedvizhimi imoti) is levied at 0.01%–0.45% of the property's tax value (set by municipalities). Vehicle tax and patent tax for micro-enterprises are also locally determined. Sofia Municipality applies higher property tax coefficients than rural areas. Bulgaria has the EU's lowest flat income and corporate tax rates at 10%, making it a competitive jurisdiction for businesses.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Italy vs Bulgaria: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 10%). 🇧🇬 Bulgaria is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 9–20%).

🏢 Corporate Tax: 🇧🇬 Bulgaria offers a lower corporate rate (10% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇧🇬 Bulgaria taxes investment gains at a lower rate (10% vs 26%), benefiting investors.

Related Comparisons

🇮🇹 Italy vs 🇦🇺 AustraliaTax comparison🇮🇹 Italy vs 🇨🇦 CanadaTax comparison🇮🇹 Italy vs 🇫🇷 FranceTax comparison🇮🇹 Italy vs 🇩🇪 GermanyTax comparison🇮🇹 Italy vs 🇨🇭 SwitzerlandTax comparison🇮🇹 Italy vs 🇬🇧 United KingdomTax comparison🇮🇹 Italy vs 🇺🇸 United StatesTax comparison🇮🇹 Italy vs 🇦🇱 AlbaniaTax comparison🇮🇹 Italy vs 🇧🇾 BelarusTax comparison🇮🇹 Italy vs 🇧🇦 Bosnia and HerzegovinaTax comparison🇮🇹 Italy vs 🇭🇷 CroatiaTax comparison🇮🇹 Italy vs 🇨🇿 Czech RepublicTax comparison
All 🇮🇹 Italy comparisons →All 🇧🇬 Bulgaria comparisons →