European Countries with the Lowest Tax Rates
Have you ever wondered where the taxes are the lowest in Europe? Tax rates can be a deal-breaker for some people, especially when choosing a country to work in as an expat. In this article, we will examine five nations with some of Europe's lowest income tax rates. Keep reading to find out which country may be the best fit for your next job!
With a flat rate of just 10%, Bulgaria's income tax is one of the lowest in Europe. Income tax rates in Bulgaria for foreigners are the same as for Bulgarian residents
It is important to note that foreigners who stay in Bulgaria for less than 183 days in a tax year are considered non-residents for tax purposes and are only taxed on income derived from Bulgarian sources. In this case, the tax rate may differ from the flat 10% rate. Click here for more details about the Tax System in Bulgaria.
Bulgaria is not only attractive to those looking to keep more of their earnings, but also to expats looking for great quality of life. The country is known for its stunning landscapes, extensive cultural history, and wide range of outdoor pursuits. Bulgaria is a great destination to live and work because it also boasts a growing economy and a well-developed healthcare system. The nation also is known for its delectable traditional cuisine, such as Meshana Skara, and friendly people.
Malta has a progressive income tax system, with rates ranging from 0% to 35%. The highest rate only kicks in for those earning over €60,000 per year, making it a great destination for high-earners looking to minimize their tax burden.
Additionally, Malta offers a number of incentives for highly skilled foreign workers, including a reduced tax rate of 15% for eligible employees in certain industries. Click here for more details about the tax system in Malta.
Malta is also known for its stunning beaches, extensive history, and mouthwatering food. A good standard of living and a comparatively low cost of living are also present. Malta is a great place for expats because it has a renowned excellent job market, particularly for foreigners. Here you will find beautiful architecture, including the megalithic temples of Mnajdra and Hagar Qim, as well as for its lengthy nautical history.
Estonia's flat rate of 20% places it among the countries with low income tax rates in Europe. Taxable income includes your gross income minus any allowed deductions, such as social security contributions and certain business expenses
Estonia also has a tax-exempt threshold, which means that if your taxable income is below a certain amount, you won't have to pay any income tax. The tax-exempt threshold for 2022 is €6,480 per year, which means that if your taxable income is below that amount, you won't be subject to income tax. Click here for more information about the tax system in Estonia.
Estonia is a technologically advanced country with a high standard of living. It also offers a unique blend of modern and traditional culture, as well as beautiful landscapes and rich history. Estonia is also known for its excellent educational system, making it a great destination for families. Additionally, Estonia is one of the most digitally advanced countries in the world and offers widespread access to high-speed internet and e-government services.
Cyprus' allows you to earn up to 20,000 EUR per year without any income tax! After that a rate of 20% kicks in, which is relatively low when compared to other European nations. Just like on Malta, the highest tax rate of 35% only kicks in at 60,000 EUR per year.
Foreigners who work in Cyprus for less than 183 days in a tax year are not considered tax residents and are taxed only on their Cyprus-sourced income, which is subject to a flat tax rate of 20%. Foreigners who work in Cyprus for more than 183 days in a tax year are considered tax residents and are taxed on their worldwide income at the progressive tax rates. Click here for more details about the tax system in Cyprus.
On this sunny island you will find a mixture of Western and Easter culture, making it a unique place to live and work. Furthermore, Cyprus is one of the sunniest places on earth, with more than 300 days on sun per year. Even though, the country is fairly green and lush with the highest mountain, Troodos, even offering skiing opportunities during the winters. The country is also famous for its ancient ruins, such as the Tombs of the Kings, and the unesco heritage site of Paphos.
Are you looking for a European country with a low income tax rate, beautiful landscapes, and a high standard of living? Look no further than Lithuania! With a flat rate of 20%, up to 101,094 EUR, Lithuania offers a great opportunity for individuals and families looking to save on taxes while enjoying all the benefits of a developed country.
Not only that, but the country boasts picturesque countryside, perfect for outdoor activities such as hiking and cycling, as well as medieval Old Towns, beautiful beaches, and lakes. The cultural scene is also vibrant, with a rich history and many festivals and events that take place throughout the year. Click here for more details about the tax system in Lithuania. Click here for more details about the tax system in Lithuania.
*Please note that the information is subject to 2022, and can change anytime.
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