COUNTRY COMPARISON · UPDATED 2026-07-15
Italy vs North Macedonia: taxes, salary and cost of living
Italy and North Macedonia present two different cost profiles: the first question is whether the salary gap compensates for housing and daily expenses.
Italy vs North Macedonia at a glance
| Indicator | Italy | North Macedonia |
|---|---|---|
| Standard VAT | 22% | 18% |
| Income tax | 23-43% | 10% |
| Social contributions | ~42% | 27% |
| Tax burden | 47.1% | 35.3% |
| Average monthly salary | €3,312 | €1,070 |
| Studio rent | €726 | €350 |
| Monthly food estimate | €320 | €220 |
| Gasoline | 1.74 €/L | 1.27 €/L |
| Electricity | 0.3 €/kWh | 0.11 €/kWh |
How far does the local salary go?
Italy records the higher listed monthly salary. The gap is €2,242, approximately 209.5% relative to the lower figure. Within the numeric EuroCosts sample, Italy ranks 12 of 27 for salary and North Macedonia ranks 25 of 27. That ranking is useful context, but gross and net labels must be checked in the source record.
What recurring living costs reveal
North Macedonia has the lower listed studio rent by €376, a 107.4% difference relative to the higher rent. Italy sits 19 of 37 and North Macedonia 3 of 37 in the available low-to-high rent ranking. North Macedonia 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 €500 in North Macedonia. This leaves €1,766 more in Italy, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Tax profile for employees
North Macedonia has the lower listed tax burden by 11.8 percentage points. Standard VAT is 22% in Italy versus 18% in North Macedonia. Allowances, tax brackets and employment status can reverse a headline comparison.
Fuel-price impact
North Macedonia has the lower listed gasoline price by €0.47 per litre. For a driver buying 50 litres a month, that headline difference is about €23.5 monthly, before insurance, parking and road charges.
The answer depends on your profile
For Italy and North Macedonia, 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.
Final view: Italy or North Macedonia?
Italy produces the stronger simplified monthly remainder in this dataset, while North Macedonia leads on listed rent. That split explains why there is no universal winner.
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 North Macedonia comparisons