EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Italy vs Montenegro: taxes, salary and cost of living
For someone shortlisting Italy and Montenegro, headline tax rates tell only part of the story. The monthly household budget produces a more useful comparison.
Italy vs Montenegro at a glance
| Indicator | Italy | Montenegro |
|---|---|---|
| Standard VAT | 22% | 21% |
| Income tax | 23-43% | 0% / 9% / 15% |
| Social contributions | ~42% | 21.5% |
| Tax burden | 47.1% | 21.5% |
| Average monthly salary | €3,312 | €1,225 |
| Studio rent | €726 | €490 |
| Monthly food estimate | €320 | €230 |
| Gasoline | 1.74 €/L | 1.49 €/L |
| Electricity | 0.3 €/kWh | 0.11 €/kWh |
Income comparison in context
Italy records the higher listed monthly salary. The gap is €2,087, approximately 170.4% relative to the lower figure. Within the numeric EuroCosts sample, Italy ranks 12 of 27 for salary and Montenegro ranks 24 of 27. The nominal advantage should be tested against local housing before it is treated as additional purchasing power.
Rent, food and the monthly budget
Montenegro has the lower listed studio rent by €236, a 48.2% difference relative to the higher rent. Italy sits 19 of 37 and Montenegro 9 of 37 in the available low-to-high rent ranking. Montenegro 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 €2,266 in Italy and €505 in Montenegro. This leaves €1,761 more in Italy, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Headline taxation: what differs
Montenegro has the lower listed tax burden by 25.6 percentage points. Standard VAT is 22% in Italy versus 21% in Montenegro. Effective taxation depends on income level and household circumstances.
A practical transport check
Montenegro has the lower listed gasoline price by €0.25 per litre. For a driver buying 50 litres a month, that headline difference is about €12.5 monthly, before insurance, parking and road charges.
Who may prefer each country?
The better choice between Italy and Montenegro changes with the user: salary-led relocation favours the stronger income-to-cost balance, budget-led relocation favours recurring expenses, and business decisions require separate legal and corporate-tax analysis.
The most useful conclusion
Italy produces the stronger simplified monthly remainder in this dataset, while Montenegro leads on listed rent. The trade-off is more informative than a blanket cheapest-country label.
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 Italy comparisons · Explore Montenegro comparisons