🇵🇹 Portugal vs 🇮🇹 Italy
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇹 Portugal | 🇮🇹 Italy |
|---|---|---|
| Tax System | NHR (Non-Habitual Resident) | Flat Tax Regime |
| Income Tax (Foreign) | 20% flat (qualifying income) | €100k flat (foreign income) |
| Capital Gains Tax | 0% (foreign gains) | 0% (foreign) |
| Corporate Tax | 21% | 24% |
| Residency Requirement | D7 Visa (passive income proof) | Elective Residency Visa |
| Minimum Stay | 183 days/year | 183 days |
| Cost of Living | Moderate ($2,000-3,000/mo) | Moderate-High ($2,500-4,000/mo) |
🇵🇹 Portugal
Highlights
- ✅EU membership & passport path
- ✅NHR tax regime benefits
- ✅High quality of life
- ✅English widely spoken
- ✅Great weather
Considerations
- ⚠️NHR being phased out for new applicants
- ⚠️183-day stay requirement
- ⚠️Higher taxes after NHR ends
Best For
- 👤EU access seekers
- 👤Retirees
- 👤Quality of life focus
🇮🇹 Italy
Highlights
- ✅€100k flat tax on foreign income
- ✅World-class culture
- ✅Amazing food
- ✅EU membership
- ✅Beautiful country
Considerations
- ⚠️Bureaucracy
- ⚠️Language barrier
- ⚠️Regime has time limits
Best For
- 👤Wealthy individuals
- 👤Culture lovers
- 👤EU access seekers
Which Should You Choose?
Choose Portugal if: You prioritize eu membership & passport path and nhr tax regime benefits. Ideal for eu access seekers, retirees, quality of life focus.
Choose Italy if: You prioritize €100k flat tax on foreign income and world-class culture. Ideal for wealthy individuals, culture lovers, eu access seekers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.