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United Arab Emirates vs Italy
Tax Rate Comparison

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

๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates
vs
๐Ÿ‡ฎ๐Ÿ‡น Italy
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0%
No personal income tax; unlikely to change short-term
No change
23โ€“43%
3-bracket IRPEF reform targeting completion
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
4โ€“22%
Digital economy VAT rules tightening
No change
Corporate Tax Rate
Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
24%
Investment incentive rate (20%) extended
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
26%
Flat 26% maintained
No change
Social Security & Payroll
Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates โ€” Emirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10โ€“15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0โ€“9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

๐Ÿ‡ฎ๐Ÿ‡น Italy โ€” Regional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%โ€“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%.

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

United Arab Emirates vs Italy: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡น Italy has a higher top income tax rate (0% vs 23โ€“43%). ๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Italy has a higher consumption tax (5% vs 4โ€“22%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates offers a lower corporate rate (9% vs 24%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates taxes investment gains at a lower rate (0% vs 26%), benefiting investors.

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