Thinking about relocating to Portugal or Italy? This comprehensive Portugal vs Italy comparison covers everything expats and international workers need to know: average salaries, tax rates, work-life balance, annual leave policies, maternity and paternity leave, and cost of living considerations. Whether you're a software developer, engineer, or professional considering a move to Europe, this guide will help you make an informed decision.
Average Salary Difference
-33.3%
Italy pays more
Portugal
€22,000
avg. salary
Italy
€33,000
avg. salary
Portugal vs Italy Salary Comparison
Average salary, median salary, minimum wage and top earners
Average Salary
€22,000€33,000Median Salary
€18,000€28,000Minimum Wage
€12,880€0Top 10%
€40,000€65,000Work-Life Balance: Portugal vs Italy
Annual leave, working hours, maternity & paternity leave comparison
Visual Comparison
Work Week
40 hours
40 hours
Annual Leave
22 working days minimum
20-26 days (varies by contract)
Public Holidays
13 days
12 days
Sick Leave
Up to 3 years at 55-75% salary (via Social Security)
Up to 180 days at 50-100% salary
Maternity Leave
120 days at 100% or 150 days at 80%
5 months at 80% salary
Paternity Leave
28 consecutive days mandatory
10 days at 100% salary
Portugal vs Italy for Expats: Pros & Cons
Advantages and challenges for international workers in each country
Portugal
Why Work in Portugal
Affordable Living
Significantly lower cost of living compared to Western Europe, especially outside Lisbon
Quality of Life
Excellent climate, food, culture, and one of the safest countries in the world
Growing Tech Scene
Lisbon and Porto are thriving tech hubs with many startups and international companies
NHR Tax Regime
Non-Habitual Resident program offers favorable tax treatment for up to 10 years
English Proficiency
High level of English proficiency, especially among younger professionals and in tech
Challenges of Living in Portugal
Lower Salaries
Salaries are among the lowest in Western Europe, though cost of living compensates partially
High Tax Rates
Progressive IRS rates reach 48%, plus 11% social security contributions
Housing Pressure
Lisbon and Porto rental prices have risen sharply due to tourism and foreign demand
Bureaucracy
Administrative processes can be slow and complex, especially for non-Portuguese speakers
Italy
Why Work in Italy
Quality of Life
Excellent food, culture, climate, and work-life balance with emphasis on enjoying life.
Lower Cost of Living
Outside Milan, living costs are significantly lower than Northern Europe.
Strong Worker Protections
Robust labor laws, generous leave, and mandatory severance fund (TFR).
Cultural Experience
World-class art, history, cuisine, and lifestyle opportunities.
Healthcare
Universal healthcare system ranked among the best in the world.
Challenges of Living in Italy
Lower Salaries
Wages are generally lower than Northern Europe, especially in tech.
Bureaucracy
Complex administrative processes and paperwork can be frustrating.
Language Barrier
English proficiency in workplaces varies; Italian is often necessary.
Economic Uncertainty
Higher unemployment rates, especially for youth, and slower economic growth.
Regional Disparities
Significant economic gap between North and South Italy.
Tax Rates Portugal vs Italy
Income tax, social security, and tax benefits comparison
Portugal
- Progressive IRS with 9 brackets from 12.50% to 48%
- Social Security: 11% employee + 23.75% employer
- 14 monthly payments (12 regular + holiday + Christmas subsidies)
- Specific deduction of €4,587 for employment income
- Solidarity surcharge: 2.5% on €81,199-€250,000, 5% above €250,000
- Minimum wage: €920/month (2026)
Italy
- Progressive IRPEF tax with 3 brackets: 23%, 33%, 43%
- Regional tax (1.23%-3.33%) and municipal tax (0%-0.9%) on top of national tax
- Social security contribution around 9.19% for employees
- Mandatory 13th month salary (Tredicesima)
- TFR severance fund accrual of ~6.91% per year
- Flat tax regime available for new residents (Impatriati regime)
Best Cities to Work in Portugal and Italy
Top destinations for tech jobs, expats and international professionals
Portugal
Italy
How to Find Jobs in Portugal vs Italy
Job portals, recruitment agencies, and networking platforms
Portugal
Italy
Work Visa Options: Portugal vs Italy
Visa types, requirements, and duration for non-EU workers
Portugal Work Visas
Tech Visa
Fast-track visa for tech workers joining certified companies
D7 Visa (Passive Income)
For retirees and remote workers with passive income
EU Blue Card
For highly qualified workers from outside the EU
Digital Nomad Visa
For remote workers earning from foreign sources
Italy Work Visas
EU Blue Card
For highly qualified non-EU workers with a university degree or equivalent experience.
Work Visa (Nulla Osta)
Standard work permit for non-EU nationals with a job offer.
Self-Employment Visa
For freelancers, entrepreneurs, and self-employed professionals.
Digital Nomad Visa
New visa for remote workers employed by foreign companies (from 2024).
Frequently Asked Questions: Portugal vs Italy
Common questions about working in these countries
What is the average salary in Portugal vs Italy?
The average salary in Portugal is €22,000 per year, while in Italy it is €33,000 per year. This represents a 33.3% difference.
Which country has better work-life balance: Portugal or Italy?
Portugal offers 22 working days minimum annual leave and 13 public holidays with a 40 hours work week. Italy offers 20-26 days (varies by contract) annual leave and 12 public holidays with a 40 hours work week.
How does parental leave compare between Portugal and Italy?
In Portugal, maternity leave is 120 days at 100% or 150 days at 80% and paternity leave is 28 consecutive days mandatory. In Italy, maternity leave is 5 months at 80% salary and paternity leave is 10 days at 100% salary.
Is it better to work in Portugal or Italy as an expat?
Both are excellent choices for expats. Portugal offers: Affordable Living, Quality of Life. Italy offers: Quality of Life, Lower Cost of Living. Consider your priorities like salary, language requirements, and lifestyle preferences.
What are the main tax differences between Portugal and Italy?
Portugal: Progressive IRS with 9 brackets from 12.50% to 48%. Italy: Progressive IRPEF tax with 3 brackets: 23%, 33%, 43%. Both countries have different tax benefits and deductions that can significantly impact your take-home pay.
Calculate Your Take-Home Pay in Portugal or Italy
Use our free salary calculators to see exactly how much you'll earn after taxes in each country.
