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Lowest Income Tax Destinations In Europe

Lowest Income Tax Destinations In Europe

 

 

A study by income-tax.co.uk surveyed 34 European countries to discover how much of a €3,000 monthly salary must be paid in taxes to identify the lowest income tax destinations in Europe.  The study reveals typical take home pay across the continent.

 

 

 

Bulgaria is the best European country to live in if you want to pay as little tax as possible as it is Europe’s lowest-taxing country with its rock-bottom 10% tax rate gives workers the biggest pay packet.  The study, conducted by Income Tax UK, shows that the Balkan nation lets taxpayers keep the highest proportion of their monthly salary thanks to a flat tax rate of just 10% – the lowest in Europe.

The UK is eighth-lowest taxing country on the list, while Ireland is the third lowest.

The investigation analysed how much someone earning €3,000 (£2,580), per month would be taxed in 33 EU countries plus the UK, and Bulgaria came out top of the low tax pile, with an impressive €2,690 (£2,313) in take home pay.

Poland comes in second in the low tax league table, allowing taxpayers to keep 86.3% of an average €3,000 monthly wage, which equates to €2,589 (£2,226) in their pocket.

The top three is completed by Ireland, where workers would have €2,466 (£2,120) at the end of the month.

The UK ranks as the eighth lowest tax taker out of the 34 countries surveyed, leaving Brits £2,058 to spend from their £2,580 wage.

At the other end of the table workers in Lithuania have 42% of their income or €1,248 taken in tax.  Romanians face rates nearly as high, with €1,755 (£1,509) left from the €3,000. The third highest taxing country in Europe is Portugal, where you can expect to be left with €1,836 (£1,578) per month.

A spokesperson for Income Tax UK said: “It’s very interesting to see the tax differences across Europe for an average monthly salary. As we shift to a more remote working culture, those with the ability to work from anywhere also have the opportunity to maximise their income. Romania and Bulgaria border each other, yet the difference in salary after tax is more than £800.”

Commonly regarded as the economic powerhouse of Europe, Germany sits right in the middle of the tax table, 17th out of 33. A taxpayer in Germany on €3,000 would have €2,240 (£1,926) remaining after deductions from the state.

Norway’s high taxes are frequently mentioned, but this analysis shows that for someone earning €3,000 per month, the country takes the fifth lowest amount of tax, leaving them with €2,415 (£2,076).

Switzerland is often referred to as a tax haven, but that only applies to the super rich, as the take home pay is €2,184 (£1,878) – very close to the average across all 34 countries, which equals €2,177 (£1,872).

Income Tax UK allows users to calculate their net salary and find out exactly how much tax and National Insurance they should pay to HMRC based on their income.

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The Income Tax UK take home pay league table

Take home pay Rank Country Take home pay from £2,580 monthly salary Tax taken from £2,580 monthly salary Take home pay from €3,000 monthly salary Tax taken from €3,000 monthly salary
1 Bulgaria £2,313.68 £266.32 €2,690.32 €309.68
2 Poland £2,226.65 £353.35 €2,589.13 €410.87
3 Ireland £2,120.76 £459.24 €2,466.00 €534.00
4 Luxembourg £2,091.00 £489.00 €2,431.40 €568.60
5 Norway £2,076.90 £503.10 €2,415.00 €585.00
6 Ukraine £2,076.54 £503.46 €2,414.58 €585.42
7 Netherlands £2,063.42 £516.58 €2,399.33 €600.67
8 United Kingdom £2,058.84 £521.16 €2,394.00 €606.00
9 Greece £2,027.02 £552.98 €2,357.00 €643.00
10 France £2,010.68 £569.32 €2,338.00 €662.00
11 Estonia £1,989.70 £590.30 €2,313.60 €686.40
12 Sweden £1,957.45 £622.55 €2,276.11 €723.89
13 Iceland £1,953.06 £626.94 €2,271.00 €729.00
14 Malta £1,949.28 £630.72 €2,266.61 €733.39
15 Albania £1,946.21 £633.79 €2,263.04 €736.96
16 Spain £1,941.45 £638.55 €2,257.50 €742.50
17 Germany £1,926.73 £653.27 €2,240.38 €759.62
18 Switzerland £1,878.44 £701.56 €2,184.23 €815.77
19 Finland £1,873.08 £706.92 €2,178.00 €822.00
20 Latvia £1,812.89 £767.11 €2,108.01 €891.99
21 Slovakia £1,809.77 £770.23 €2,104.38 €895.62
22 Cyprus £1,789.96 £790.04 €2,081.35 €918.65
23 Austria £1,756.27 £823.73 €2,042.18 €957.82
24 Czech Republic £1,740.15 £839.85 €2,023.43 €976.57
25 Denmark £1,734.04 £845.96 €2,016.32 €983.68
26 Belgium £1,715.70 £864.30 €1,995.00 €1,005.00
27 Hungary £1,715.69 £864.31 €1,994.99 €1,005.01
28 Croatia £1,646.47 £933.53 €1,914.50 €1,085.50
29 Italy £1,635.72 £944.28 €1,902.00 €1,098.00
30 Bosnia and Herzegovina £1,615.08 £964.92 €1,878.00 €1,122.00
31 Slovenia £1,613.40 £966.60 €1,876.05 €1,123.95
32 Portugal £1,578.96 £1,001.04 €1,836.00 €1,164.00
33 Romania £1,509.64 £1,070.36 €1,755.40 €1,244.60
34 Lithuania £1,506.72 £1,073.28 €1,752.00 €1,248.00
Average across Europe £1,872.39 £707.61 €2,177.20 €822.80