Bulgaria is Europe’s lowest-taxing country, while UK is eighth lowest – new research reveals typical take home pay across the continent

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Capital of Bulgaria Sofia
  • income-tax.co.uk surveyed 34 European countries to discover how much of a £2,580 monthly salary must be paid in taxes
  • UK is eighth-lowest taxing country on the list, while Ireland is the third lowest
  • Bulgaria’s rock-bottom 10% tax rate gives workers the biggest pay packet
  • Workers in Lithuania have more than £1,000 of a £2,580 paycheque taken in tax

New research has revealed that Bulgaria is the best European country to live in if you want to pay as little tax as possible.

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

Poland comes in second in the low tax league table, allowing taxpayers to keep 86.3% of an average £2,580 monthly wage, which equates to £2,226 (€2,589) in their pocket.

The top three is completed by Ireland, where workers would have £2,120 (€2,466) 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 scale, Lithuania is the tax-happiest country in Europe, taking more than £1,000 from a monthly salary of £2,580, leaving taxpayers with £1,506 (€1,752) to spend.

Romanians face rates nearly as high, with £1,509 (€1,755) left from the £2,580. The third highest taxing country in Europe is Portugal, where you can expect to receive £1,578 (€1,836) 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 £2,580 would have £1,926 (€2,240) remaining after deductions from the state.

Norway’s high taxes are frequently mentioned, but this analysis shows that for someone earning £2,580 per month, the country takes the fifth lowest amount of tax, leaving them with £2,076 (€2,415).

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

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.

Student loan, pension contributions, bonuses, company car, dividends, Scottish tax and many more advanced features are also available in the sophisticated online tax calculator.


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