Compare taxes and see how much you save moving from Italy to Germany
Italy and Germany are the two largest EU economies — and their tax systems differ significantly despite similar headline rates. Germany's social security contributions (~20% employee side) are among Europe's highest, while Italy's employee social contributions (~9.19% via INPS) are lower. At mid-level salaries (€60,000), Italy and Germany produce similar effective rates of 30–35%. Italy's secret weapon: the impatriate regime (50% income exemption for 5 years) dramatically undercuts Germany for qualifying new arrivals. Germany counters with strong social protections and the Steuerklasse system for married couples. The right choice depends heavily on whether you qualify for Italy's impatriate regime: with it, Italy wins convincingly; without it, Germany is marginally better for mid-income earners due to higher German social benefits.
IRPEF Top Rate
Plus regional/municipal surtaxes ~3–4%
Top Rate (Reichensteuer)
Plus ~20% social contributions
At €80,000 income:
That is €750/month back in your pocket!
| Income | IT Tax | DE Tax | Savings | 10-Year |
|---|---|---|---|---|
| €40,000 | ~€9,200 IRPEF + ~€3,680 INPS = ~€12,880 | ~€7,500 income tax + ~€8,340 social = ~€15,840 | Italy saves ~€3,000 | €30,000 |
| €60,000 | ~€15,800 IRPEF + ~€5,514 INPS = ~€21,314 | ~€13,500 income tax + ~€10,440 social = ~€23,940 | Italy saves ~€2,600 | €26,000 |
| €80,000 | ~€23,400 IRPEF + ~€7,352 INPS = ~€30,752 | ~€20,800 income tax + ~€12,040 social = ~€32,840 | Italy saves ~€2,100 | €21,000 |
| €100,000 | ~€30,700 IRPEF + ~€9,190 INPS = ~€39,890 | ~€28,500 income tax + ~€12,940 social = ~€41,440 | Italy saves ~€1,600 | €16,000 |
| €150,000 | ~€50,000 IRPEF + ~€9,190 INPS (capped) = ~€59,190 | ~€54,800 income tax + ~€13,940 social = ~€68,740 | Italy saves ~€9,500 | €95,000 |
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Set Up Compliant Italian or German Employment →At standard rates without any special regimes, Italy and Germany are broadly similar at most income levels — Italy's IRPEF tops at 43% plus regional/municipal surtaxes (~3–4%), Germany's income tax reaches 45% (Reichensteuer) plus solidarity surcharge. The biggest differentiator is social contributions: Germany's employee-side social contributions (~20.85%) significantly exceed Italy's INPS (~9.19%), making Germany's effective total deduction higher at mid-incomes.
For qualifying new arrivals, yes — dramatically so. Italy's impatriate regime exempts 50% of income from IRPEF for 5 years (70% in southern Italy). At €80,000 salary, this roughly halves effective Italian income tax from ~29% to ~14–15%. Germany has no equivalent — the Steuerklassen system helps married couples but provides no comparable income exemption for new arrivals. If you qualify for the impatriate regime, Italy wins decisively.
Italy: employee INPS contribution is approximately 9.19% of gross salary (on earnings up to ~€55,008; lower rate above). Germany: combined employee social contributions total approximately 20.85% — health 8.1%, pension 9.3%, unemployment 1.3%, nursing care 1.7%. At €80,000 gross, Italian employees pay ~€7,352 in INPS while German employees pay ~€12,040 in combined social contributions — a €4,688 annual difference in take-home pay from social contributions alone.
Germany. German unemployment benefit (Arbeitslosengeld I) pays 60–67% of prior net wage for up to 24 months depending on contribution history. The Kurzarbeit scheme allows employers to reduce hours with state support rather than making redundancies. Italy's NASPI unemployment benefit pays 75% of average daily wage in the last 4 years, up to a maximum of €1,470/month, for 26 weeks — less generous. For workers concerned about job security, Germany's social protection is more comprehensive.
If you qualify for Italy's impatriate regime (haven't been Italian tax resident in 2 of the last 3 years), Italy is significantly better on taxes for 5 years — worth potentially €20,000–€50,000 over the regime period at mid-to-high salaries. After the impatriate regime expires, Italy and Germany are broadly similar on income tax, but Germany's higher social contributions make take-home slightly lower. Non-tax factors — career opportunities, language, lifestyle, city (Milan vs Munich vs Berlin) — typically drive the final decision.