EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Germany vs Italy: taxes, salary and cost of living
Germany and Italy present two different cost profiles: the first question is whether the salary gap compensates for housing and daily expenses.
Germany vs Italy at a glance
| Indicator | Germany | Italy |
|---|---|---|
| Standard VAT | 19% | 22% |
| Income tax | 0-45% | 23-43% |
| Social contributions | ~40% | ~42% |
| Tax burden | 47.9% | 47.1% |
| Average monthly salary | €4,900 | €3,312 |
| Studio rent | €850 | €726 |
| Monthly food estimate | €350 | €320 |
| Gasoline | 1.72 €/L | 1.74 €/L |
| Electricity | 0.39 €/kWh | 0.3 €/kWh |
Salary advantage and purchasing power
Germany records the higher listed monthly salary. The gap is €1,588, approximately 47.9% relative to the lower figure. Within the numeric EuroCosts sample, Germany ranks 7 of 27 for salary and Italy ranks 12 of 27. Currency conversion and salary methodology can materially change a relocation budget.
Housing pressure and everyday spending
Italy has the lower listed studio rent by €124, a 17.1% difference relative to the higher rent. Germany sits 25 of 37 and Italy 19 of 37 in the available low-to-high rent ranking. Italy also has the lower food estimate, so the housing result is reinforced by groceries.
After subtracting only the listed rent and food estimates, the simplified remainder is €3,700 in Germany and €2,266 in Italy. This leaves €1,434 more in Germany, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
VAT and personal tax context
Italy has the lower listed tax burden by 0.8 percentage points. Standard VAT is 19% in Germany versus 22% in Italy. Neither measure is a substitute for an individual payroll simulation.
Driving and mobility costs
Germany has the lower listed gasoline price by €0.02 per litre. For a driver buying 50 litres a month, that headline difference is about €1 monthly, before insurance, parking and road charges.
Choosing by relocation scenario
For Germany and Italy, short stays are influenced heavily by rent and restaurant prices; permanent relocation adds payroll, healthcare and administrative costs. These figures work best as a shortlist, not a final decision model.
Where the comparison lands
Germany produces the stronger simplified monthly remainder in this dataset, while Italy leads on listed rent. Your income source determines which advantage matters more.
Sources and data references
- PwC standard VAT rates
- PwC personal income tax rates
- PwC corporate income tax rates
- EuroCosts data scope and generation process
Explore Germany comparisons · Explore Italy comparisons