🇳🇱 COUNTRY A Netherlands VS 🇮🇹 COUNTRY B Italy

Under the standard tax system, the Netherlands is cheaper at every income level: €4,500/year at €30,000, €7,600 at €60,000, €7,500 at €90,000, and €5,100 at €150,000. The major exception: Italy's impatriati regime (50% income exclusion for qualifying new residents for 5 years) can make Italy substantially cheaper than the Netherlands for eligible professionals — at €90,000 under impatriati, Italy's total burden drops to approximately €15,000–€17,000 versus the Netherlands' €31,700.

Italy's regime dei lavoratori impatriati (Legislative Decree 209/2023 reform) provides a 50% income exclusion on employment and self-employment income for qualifying individuals who: (1) have not been Italian tax residents for the prior 3 tax years; (2) commit to residing in Italy for at least 2 years; (3) carry out their work activity predominantly in Italy. Duration: 5 years, extendable by 5 years if the individual buys property in Italy or has a minor child. The exclusion applies to IRPEF, regional, and municipal taxes — but not INPS contributions. For a €90,000 earner: taxable income = €45,000, producing IRPEF of approximately €10,560 — making Italy far cheaper than the Netherlands for eligible arrivals.

Italy's regime forfettario is available to self-employed workers and sole traders earning under €85,000/year. It replaces standard IRPEF with a flat 15% tax on a percentage of gross revenue (the coefficient varies by sector — typically 67%–86% of revenue is the taxable base). New business first 5 years: reduced 5% rate. VAT: exempt. Bookkeeping: simplified. For a €60,000 freelancer under forfettario: taxable base ≈ €42,000 (at 70% coefficient); tax ≈ €6,300 at 15% — dramatically lower than both the standard Italian rate (€23,500) and the Netherlands (€15,900 for an employee on the same gross). The forfettario provides a major competitive advantage for independent contractors.

Italy's INPS (Istituto Nazionale della Previdenza Sociale) employee contribution is 9.19% of gross salary for most employed workers (lavoratori dipendenti), plus 1% on the part above €56,224, applied up to an annual ceiling of about €122,000; nothing further is due above the ceiling. The Netherlands: national insurance contributions are embedded within the 35.75% first Box 1 bracket for income up to €38,883 (27.65% is the NI component in 2026, of which 17.90% is AOW state pension). For a €60,000 Italian earner: INPS = ~€5,552. For a Dutch earner at €60,000: NI within Box 1 is approximately €10,750 before tax credits (27.65% of €38,883). The Netherlands' embedded structure makes direct comparison difficult — but the total Dutch burden at €60,000 is still lower despite the higher NI component.

Italy: listed share capital gains taxed at 26% flat sostitutiva (imposta sostitutiva) — applied at the broker level. Primary residence: fully exempt. Crypto assets (from 2023): 26% flat on gains above €2,000 threshold. Netherlands Box 3: no tax on the actual gain — instead a deemed return of 6.00% (2026) on investment assets above the €59,357 exemption is taxed at 36%, whatever the portfolio actually earned (actual-return taxation is planned from 2028 but not yet enacted). Primary residence: exempt from Box 3. For a €50,000 listed share gain: Italy charges €13,000 flat; the Netherlands charges nothing on the gain itself, but €100,000 invested (single person, no other Box 3 assets) costs about €878/year in Box 3 tax ((€100,000 − €59,357) × 6.00% × 36%) in good years and bad. Box 3 is lower when you realise large gains; Italy's 26% is lower in flat or losing years, because it only applies when gains are realised.

Netherlands 30% ruling: 30% of salary excluded from income tax; up to 5 years; available to employees recruited from abroad with scarce expertise; salary capped at the €262,000 WNT norm (2026), with the maximum allowance falling to 27% from 2027; employer must apply on behalf of the employee. Italy impatriati: 50% income excluded from IRPEF/surcharges; up to 5 years (extendable to 10 with property purchase or child); available to employees and self-employed; no cap on salary; individual applies independently. At €90,000: Netherlands under 30% ruling reduces Dutch tax to ~€17,400; Italy under impatriati reduces Italian tax to ~€15,000–€17,000. Italy's impatriati provides a higher absolute exclusion percentage and is available to self-employed workers — making it more powerful than the Dutch ruling at equivalent income levels.