Expat Taxation in Europe/Country Tax Regimes Compared

Country Tax Regimes Compared This chapter provides a factual comparison of tax regimes across EU member states and selected non-EU jurisdictions commonly considered by European expats. All figures are approximate and subject to change. Verify current rates with official government sources or PwC Worldwide Tax Summaries. Income Tax: Top Marginal Rates Country Top Income Tax Rate Threshold (approx.) Social Contributions Sweden 57% €50,000+ Employer: 31.4% Denmark 55.9% €60,000+ Limited employee SC Belgium 50% €42,000+ ~13% employee France 45% €175,000+ ~22% employee Germany 45% €278,000+ ~20% employee Netherlands 49.5% €73,000+ Employee SC capped Italy 43% €50,000+ ~10% employee Spain 47% €300,000+ ~6.4% employee Portugal 48% €80,000+ 11% employee Greece 44% €40,000+ ~15% employee Ireland 40% €40,000+ PRSI 4% Cyprus 35% €60,000+ GHS 2.65% only (Non-Dom) Bulgaria 10% (flat) All income ~13% employee Estonia 22% (flat) All income ~2% employee UAE (Dubai) 0% N/A None Dividend Tax Dividend taxation is where the most significant differences appear between EU countries, particularly for business owners and investors: Country Dividend Tax Notes Cyprus (Non-Dom) 2.65% (GHS only) 0% income tax, 2.65% GHS contribution. See Chapter 3. Cyprus (standard) 17% SDC + 2.65% GHS For residents who are NOT Non-Dom Estonia 0% retained, 20% on distribution Distributed profits taxed; retained reinvestment not taxed Bulgaria 5% Flat withholding on dividends Ireland 25% DWT (Dividend Withholding Tax) Germany 25% + soli 5.5% ~26.4% effective France 30% (PFU flat tax) Or progressive scale if elected Spain 19-28% Progressive scale on savings income UK 8.75-39.35% Depending on income band (post-2023 regime) Netherlands 24.5% (Box 2) For substantial shareholding (5%+) Source: KPMG Individual Tax Rates, PwC Tax Summaries Corporate Tax Country Corporate Tax Rate Notes Ireland 12.5% Standard rate on trading income Cyprus 15% Standard CIT rate Bulgaria 10% Lowest in EU Hungary 9% Lowest in EU (non-standard) Estonia 0-22% 0% on retained earnings; 22% on distributed Lithuania 15% Standard rate Latvia 20% On distributed profits only Netherlands 19-25.8% Two-tier rate Germany ~30% Federal + trade tax (Gewerbesteuer) France 25% Reduced rate for small companies Belgium 25% Reduced 20% for SMEs Spain 25% Standard rate Special Expat Tax Regimes Several EU countries have introduced preferential regimes specifically for incoming residents: Country Regime Benefit Duration Status (2025) Cyprus Non-Dom 0% income tax on dividends and interest (2.65% GHS only) 17 years Active Cyprus 60-Day Rule Tax residency with only 60 days/year presence Ongoing Active Cyprus 50% IT exemption 50% exemption on employment income >€55,000/year 10 years Active Greece Non-Dom €100,000/year flat tax on all foreign income 15 years Active Italy Flat tax €100,000/year flat tax on foreign income 15 years Active (amended 2023) Netherlands 30% ruling 30% of salary tax-free as expense allowance 5 years Active (tightened 2024) Portugal NHR 10-year preferential rates on foreign income 10 years Closed to new applicants (2024) Malta Global Residence 15% flat rate on foreign income remitted Ongoing Active Full details on Cyprus regimes: Cyprus Tax Life: Cyprus Tax Rates Guide