EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Italy vs Sweden: taxes, salary and cost of living
For someone shortlisting Italy and Sweden, headline tax rates tell only part of the story. The monthly household budget produces a more useful comparison.
Italy vs Sweden at a glance
| Indicator | Italy | Sweden |
|---|---|---|
| Standard VAT | 22% | 25% |
| Income tax | 23-43% | 29-55% |
| Social contributions | ~42% | 38.42% |
| Tax burden | 47.1% | 42.6% |
| Average monthly salary | €3,312 | €3,750 |
| Studio rent | €726 | €900 |
| Monthly food estimate | €320 | €360 |
| Gasoline | 1.74 €/L | 1.55 €/L |
| Electricity | 0.3 €/kWh | 0.22 €/kWh |
How far does the local salary go?
Sweden records the higher listed monthly salary. The gap is €438, approximately 11.7% relative to the lower figure. Within the numeric EuroCosts sample, Italy ranks 12 of 27 for salary and Sweden ranks 11 of 27. That ranking is useful context, but gross and net labels must be checked in the source record.
What recurring living costs reveal
Italy has the lower listed studio rent by €174, a 19.3% difference relative to the higher rent. Italy sits 19 of 37 and Sweden 27 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 €2,266 in Italy and €2,490 in Sweden. This leaves €224 more in Sweden, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Tax profile for employees
Sweden has the lower listed tax burden by 4.5 percentage points. Standard VAT is 22% in Italy versus 25% in Sweden. Allowances, tax brackets and employment status can reverse a headline comparison.
Fuel-price impact
Sweden has the lower listed gasoline price by €0.19 per litre. For a driver buying 50 litres a month, that headline difference is about €9.5 monthly, before insurance, parking and road charges.
The answer depends on your profile
The better choice between Italy and Sweden 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.
Final view: Italy or Sweden?
Sweden produces the stronger simplified monthly remainder in this dataset, while Italy 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 Sweden comparisons