This is the age of mobiity, relocation, change of life and country. Does relocation effectively implies better life-style, at least by economic point of view? Just an initial comparison, in order to reflect on earning: the taxation.
Each country pones some a form of taxation to salary earned by employees. There 3 main type of taxations, based on the giustifications:
-
Corporate Tax: tax imposed on net profits of employers (not income). It is due since the employer is able to perform business in that country. https://en.wikipedia.org/wiki/Corporate_tax
-
Individual Tax: tax imposed on income of individuals (employees). It is needed since employee is able to live and act into the country. https://en.wikipedia.org/wiki/Income_tax
-
PayRoll Tax: tax imposed on the payroll. It is due for country-provided services like pension (retirement), health assistance, etc? https://en.wikipedia.org/wiki/Payroll_tax
On top of that there is the VAT (Value Added Tax or Sales Tax) that buyers (corporate or individual) should pay on each good. https://en.wikipedia.org/wiki/Value-added_tax
Each country has a different approach on such type of taxation (see https://en.wikipedia.org/wiki/List_of_countries_by_tax_rates ).
Classification of Countries
A interesting comparison of taxation approach could be made on the base of different used percentages: https://en.wikipedia.org/wiki/List_of_countries_by_tax_rates
European Salary Tax comparison
Keeping data from Wikipedia page, I made a comparison of average taxation (not weighted!): the column Total is to be evaluated for a life-quality comparison, using indicative value of maximum VAT in that country:
|
Country |
Corporate (%) |
Individual (%) |
Payroll (%) |
Total (%) |
VAT max(%) |
|
Albania |
15 |
12 |
0 |
27 |
20 |
|
Austria |
25 |
25 |
0 |
50 |
20 |
|
Belgium |
34 |
32 |
38 |
78.92 |
21 |
|
Bosnia and Herzegovina |
10 |
10 |
45 |
56 |
17 |
|
Bulgaria |
10 |
10 |
31 |
44.8 |
20 |
|
Croatia |
20 |
26 |
30 |
62.2 |
25 |
|
Cyprus |
12.5 |
18 |
7 |
35.365 |
19 |
|
Czech Republic |
19 |
19 |
50 |
69 |
21 |
|
Denmark |
23.5 |
39 |
8 |
65.5 |
25 |
|
Estonia |
20 |
20 |
33 |
59.8 |
20 |
|
Finland |
20 |
35 |
21 |
64.45 |
24 |
|
France |
33.33 |
25 |
66 |
85.8322 |
20 |
|
Germany |
30 |
30 |
41 |
76.4 |
19 |
|
Gibraltar |
10 |
29 |
0 |
39 |
0 |
|
Greece |
26 |
32 |
44 |
76.48 |
23 |
|
Hungary |
19 |
16 |
35 |
57.75 |
27 |
|
Iceland |
20 |
42 |
6 |
64.28 |
24 |
|
Ireland |
12.5 |
30 |
6 |
45.95 |
23 |
|
Isle of Man |
0 |
15 |
24 |
35.4 |
20 |
|
Israel |
26.5 |
31 |
31 |
70.675 |
18 |
|
Italy |
27.5 |
33 |
39 |
75.905 |
22 |
|
Liechtenstein |
12.5 |
9.5 |
11.6 |
31.048 |
7.6 |
|
Lithuania |
15 |
7.5 |
40 |
53.5 |
21 |
|
Luxembourg |
28 |
29 |
0 |
57 |
17 |
|
Macedonia |
10 |
10 |
0 |
20 |
18 |
|
Malta |
35 |
17.5 |
0 |
52.5 |
18 |
|
Moldova |
12 |
12.5 |
0 |
24.5 |
20 |
|
Monaco |
33.33 |
0 |
46 |
63.9982 |
19.6 |
|
Montenegro |
9 |
12 |
0 |
21 |
19 |
|
Netherlands |
25 |
44 |
0 |
69 |
21 |
|
Norway |
27 |
23.6 |
7 |
54.058 |
25 |
|
Poland |
18 |
16 |
41 |
61.06 |
23 |
|
Portugal |
25 |
31.25 |
23.75 |
66.640625 |
23 |
|
Romania |
16 |
19 |
23 |
49.95 |
24 |
|
Russia |
20 |
16 |
30 |
55.2 |
18 |
|
San Marino |
17 |
31 |
29 |
63.08 |
17 |
|
Serbia |
15 |
17.5 |
35.8 |
56.665 |
20 |
|
Slovakia |
22 |
22 |
30 |
60.8 |
20 |
|
Slovenia |
17 |
33 |
0 |
50 |
22 |
|
Spain |
25 |
34.5 |
36.25 |
74.18125 |
21 |
|
Sweden |
22 |
45.35 |
31.42 |
77.60863 |
25 |
|
Switzerland |
18 |
6.6 |
0 |
24.6 |
8 |
|
United Kingdom |
20 |
22.5 |
12.9 |
49.9175 |
20 |
Worst: Italy has an average of 75.905%. It is at third place as “most taxing country”: before there are France (85.83%) and Sweden (77.6%)
Best: Macedonia (20%), Montenegro (21%) seems to be the best places but the VAT is quite high (18% and 19% respectively); Switzerland (24.6%) could be better, considering a 8% VAT
Quick Salary Comparison
A fast comparison on salaries (useful for individuals) could be performed by using on-line tools:
-
France: http://www.salairemoyen.com/en/conversion_salaire_brut_net.html
-
Italy: http://www.calcolostipendio.it/software_calcolo_stipendio_netto.aspx