A recent analysis carried out by Income Tax UK demonstrated that the UK is the eighth-lowest taxing country in Europe after their research concluded that currently Brits take home £2,058 from a £2,580 wage.
The study looked at the amount of income people in the UK and the EU would receive after tax, based on a standard monthly salary of €3000 or £2580.
Bulgaria is at the top of the list when they concluded that they have the lowest taxed workers in Europe who pay only a 10% tax rate. Poland took second place where it was found that Polish workers keep 86.3% of an average £2,580 monthly wage. Ireland was ranked in third place followed by Norway, Luxembourg, Ukraine, Netherlands, Greece, and France.
Top Ten list of lowest taxing countries on workers earning 3,000 Euro or £2,580 per month
At the opposite end of the scale, Lithuania has the highest taxes on workers paid within this salary scale, with rates in Romania found to be similarly high.
Mark Rubinson, who heads up ABG’s relationship with EAI International added “I find this kind of international research really interesting. The tax differences across Europe for an average monthly salary are certainly something to watch, especially post Covid-19. Businesses are likely to experience staff who have moved overseas or where businesses are struggling to recruit locally, they might have the ability to employ overseas staff who will be open to a remote working culture. This presents businesses and employees with a great opportunity and certainly one that we should all be mindful of.”
If you would like to discuss how the findings of this report might impact upon your business or employees, please contact us on 020 7330 0000.