Italy vs Cyprus
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฎ๐น Italy โ Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%โ3.33%. 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%.
๐จ๐พ Cyprus โ Municipal & Community Taxes
Cyprus's 5 districts and 30+ municipalities/communities levy local taxes including immovable property tax (at municipal level after national IPT was abolished in 2017), refuse collection fees, and business licences. Nicosia and Limassol have the highest municipal charges. Cyprus is a major international financial centre offering non-dom status (no tax on dividends/interest for non-domiciled residents for 17 years), which attracts wealthy individuals. The IP Box regime offers 2.5% effective tax on qualifying IP income.
Italy vs Cyprus: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐น Italy has a higher top income tax rate (23โ43% vs 0โ35%). ๐จ๐พ Cyprus is more favourable for high earners.
๐ VAT/Sales Tax: Italy has a higher consumption tax (4โ22% vs 5โ19%).
๐ข Corporate Tax: ๐จ๐พ Cyprus offers a lower corporate rate (12.5% vs 24%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐พ Cyprus taxes investment gains at a lower rate (20% vs 26%), benefiting investors.