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Taxes

STANDARD VAT RATE

Value-Added Tax (VAT) is a consumption tax applied to most goods and services in Europe. It is included in the price of the item or service and varies by country, typically ranging between 17% and 27%.

UK

20%

SPAIN

21%

FRANCE

20%

GERMANY

19%

PORTUGAL

23%

SWITZERLAND

8.1%

LUXEMBOURG

17%

ITALY

22%

STANDARD CORPORATE TAX

The standard corporate tax refers to the base rate at which companies are taxed on their profits in a particular country. In Europe, corporate tax rates vary significantly by country and are influenced by national fiscal policies and economic strategies.

UK

<25%

SPAIN

<25%

FRANCE

<25%

GERMANY

<29%

PORTUGAL

<21%

SWITZERLAND

<15%

LUXEMBOURG

<24%

ITALY

<24%

INCOME TAX

Income tax is a government-imposed tax on the earnings of individuals and entities, such as salaries, wages, business profits, investments, and other forms of income. It is typically used to fund public services like education, healthcare, infrastructure, and national defense.

UK

<45%

SPAIN

<47%

FRANCE

<45%

GERMANY

<45%

PORTUGAL

<48%

SWITZERLAND

<40%

LUXEMBOURG

<42%

ITALY

<43%

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COUNTRYCORPORATE TAXSTANDARD VATPERSONAL INCOME TAXSOCIAL SECURITYNOTABLE TAXES
UK25%20%<45%~13.8% employer, ~12% employeeCapital gains tax, stamp duty, inheritance tax (40%)
SPAIN25%21%<47%~30% employer, ~6.35% employeeWealth tax, property transfer tax (~6-10%)
FRANCE25%20%<45%~45% employer, ~20% employeeWealth tax on real estate (IFI), digital services tax.
GERMANY29.9%19%<45%~20-25% employer, ~20% employeeTrade tax (~7-17%), solidarity surcharge (5.5% of PIT/CIT).
PORTUGAL21%23%<48%~23.75% employer, ~11% employeeMunicipal tax on real estate (~0.3-0.45%).
SWITZERLANDAVG 14.93%7.7%<40%~6-17% employer, ~6-12% employeeCantonal taxes, wealth tax, stamp duty.
LUXEMBOURG24.94%17%<42%~12% employer, ~12% employeeMunicipal business tax (~6-10%).
ITALY24%22%<43%~30% employer, ~9.19% employeeRegional tax on production (IRAP ~3.9%).
IRELAND12.5%23%<40%~11% employer, ~4% employeeCapital acquisitions tax (33%), stamp duty.

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SIMPLE SALARY COMPARISON TABLE

COUNTRYGROSS MONTHLY SALARYNET MONTHLY SALARY ARRIVING TO YOUR BANK ACCOUNTPERCENTAGE OF TAKE HOME SALARY
UK5000 GBP3780 GBP75,6 %
SPAIN5000 €3470 €69,4 %
FRANCE5000 €3286 €65,7 %
GERMANY5000 €3124 €62,5 %
PORTUGAL5000 €2877 €57,5 %
SWITZERLAND5000 CHF4082 CHF81,6 %
LUXEMBOURG5000 €3555 €71,1 %
ITALY5000 €3201 €64 %
IRELAND5000 €3516 €70,3 %

An income of 5000 €/GBP/CHF per month is considered a decent salary in most European countries, equivalent to approximately 60,000 per year. These figures are estimates, as net income can vary based on factors like the general applicable tax rate and additional state taxes, which exist in countries such as Spain and Switzerland. Moreover, take-home pay also depends on individual circumstances, as married couples or those with children may benefit from tax advantages compared to single individuals. The estimates in this table are based on a 30-year-old single person.

In the US the percentage of take home salary for a 5k per month salary is about 64% – 65%

SIMPLE SALARY COMPARISON TABLE [100K]

COUNTRYGROSS MONTHLY SALARYNET MONTHLY SALARY ARRIVING TO YOUR BANK ACCOUNTPERCENTAGE OF TAKE HOME SALARY
UK8500 GBP5127 GBP60,3 %
SPAIN8500 €4554 €53,6 %
FRANCE8500 €3679 €43,2 %
GERMANY8500 €3860 €45,4 %
PORTUGAL8500 €4558 €53,6 %
SWITZERLAND8500 CHF6839 CHF80 %
LUXEMBOURG8500 €4763 €56 %
ITALY8500 €4538 €53,3 %
IRELAND8500 €5740 €67,5 %

An income of 8,500 €/GBP/CHF per month is considered a high salary in most European countries, equivalent to 102,000 per year. These figures are estimates, as net income can vary based on factors like the general applicable tax rate and additional state taxes, which exist in countries such as Spain and Switzerland. Moreover, take-home pay also depends on individual circumstances, as married couples or those with children may benefit from tax advantages compared to single individuals. The estimates in this table are based on a 30-year-old single person.

In Europe meal & restaurant prices come with VAT included, therefore you do not have to calculate anything on top of any bill. Also, in Europe we do not pay so much in tips, perhaps a 5% is more than enough, and it is never compulsory. In a high-end restaurant it may be expected a higher tip but never compulsory.

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Meal Tax Comparison Table

In many European countries meals are subject to a reduced VAT rate, here is a comparison table for a Standard meal of 30 EUR (Mid Range Meal in Europe)

COUNTRYTOTAL BILLTAXAPPLICABLE VAT
UK30 GBP5 GBP20 %
SPAIN30 €2,72 €10 %
FRANCE30 €5 €20%
GERMANY30 €4,78 €19 %
PORTUGAL30 €3,45 €13 %
SWITZERLAND30 CHF2,24 €8,1 %
LUXEMBOURG30 €0,87 €3 %
ITALY30 €2,72 €10 %
IRELAND30 €3,56 €13,5 %

In Europe retail prices come with VAT included, therefore you do not have to calculate anything on top of any bill. Let´s make a comparison for an expensive product.

IPHONE 16 Comparison Table

This product could help making a comparison between high-ticket standard VAT products across European countries. Comparison is made with Iphone 16 Base 128GB model.

COUNTRYTOTAL BILLTAXAPPLICABLE VAT RATE% FROM STANDARD TAKE HOME PAY (5K GROSS / MONTH)
UK799 GBP134 GBP20%21,1% OF 1 MONTH NET SALARY
SPAIN959 €170 €21 %27,63% OF 1 MONTH NET SALARY
FRANCE969 €178 €20 %29,48% OF 1 MONTH NET SALARY
GERMANY949 €157 €19 %30,37% OF 1 MONTH NET SALARY
PORTUGAL989 €200 €23 %34,37% OF 1 MONTH NET SALARY
SWITZERLAND849 CHF68 €8,1 %20,79% OF 1 MONTH NET SALARY
LUXEMBOURG936,97 €136,14 €17 %26,35% OF 1 MONTH NET SALARY
ITALY979 €183 €22 %30,58% OF 1 MONTH NET SALARY
IRELAND979 €184 €23 %27,84% OF 1 MONTH NET SALARY

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Taxes and Downpayment when Buying a house in the EU

Comparison table between countries for a 250k property (middle-low price)

CountryProperty ValueTaxes on Property PurchaseOther Taxes / Related FeesMinimal Downpayment
UK250,000 GBP2,500 GBP (1%, above 125k GBP; on top of purchase price)£2,500-£7,500 (on top of purchase price)£12,500-£62,500
SPAIN250,000 €€15,000 (6%) – €25,000 (10%, on top of purchase price)€5,000-€7,500 (on top of purchase price)€50,000-€75,000
FRANCE250,000 €€14,500 (5.8%, included in purchase price)€17,500 (~7%, on top of purchase price)€25,000-€50,000
GERMANY250,000 €€8,750 (3.5%) – €16,250 (6.5%, on top of purchase price)€7,500 (~3%, on top of purchase price)€50,000-€75,000
PORTUGAL250,000 €€2,000-€8,000 (IMT 1-8%) + €2,000 (Stamp Duty 0.8%, on top of purchase price)€5,000 (~2%, on top of purchase price)€25,000-€50,000
SWITZERLAND250,000 CHFCHF 7,500 (3%, on top of purchase price)CHF 5,000 (~2%, on top of purchase price)CHF 50,000-CHF 87,500
LUXEMBOURG250,000 €€20,000 (8%, included in purchase price)€5,000 (~2%, on top of purchase price)€25,000-€50,000
ITALY250,000 €€5,000 (2%, first home) – €22,500 (9%, included in purchase price)€5,000-€7,500 (~2-3%, on top of purchase price)€50,000-€75,000
IRELAND250,000 €€2,500 (1%, on top of purchase price)€2,500 (~1%, on top of purchase price)€25,000-€50,000

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Taxes and Downpayment when Buying a house in the EU

Comparison table between countries for a 500k property (mid-range price in most of Europe)

CountryProperty ValueTaxes on Property PurchaseOther Taxes / Related FeesMinimal DownpaymentGolden Visa Available
UK500,000 GBP£15,000 (5%, above £425k; on top of purchase price)£5,000-£15,000 (on top of purchase price)£25,000-£125,000N/A
SPAIN500,000 €€30,000 (6%) – €50,000 (10%, on top of purchase price)€10,000-€15,000 (on top of purchase price)€100,000-€150,000€500,000
FRANCE500,000 €€29,000 (5.8%, included in purchase price)€35,000 (~7%, on top of purchase price)€50,000-€100,000€500,000
GERMANY500,000 €€17,500 (3.5%) – €32,500 (6.5%, on top of purchase price)€15,000 (~3%, on top of purchase price)€100,000-€150,000N/A
PORTUGAL500,000 €€4,000-€20,000 (IMT 1-8%) + €4,000 (Stamp Duty 0.8%, on top of purchase price)€10,000 (~2%, on top of purchase price)€50,000-€100,000€500,000
SWITZERLAND500,000 CHFCHF 15,000 (3%, on top of purchase price)CHF 10,000 (~2%, on top of purchase price)CHF 100,000-CHF 175,000N/A
LUXEMBOURG500,000 €€40,000 (8%, included in purchase price)€10,000 (~2%, on top of purchase price)€50,000-€100,000N/A
ITALY500,000 €€10,000 (2%, first home) – €45,000 (9%, included in purchase price)€10,000-€15,000 (~2-3%, on top of purchase price)€100,000-€150,000€500,000
IRELAND500,000 €€5,000 (1%, on top of purchase price)€5,000 (~1%, on top of purchase price)€50,000-€100,000N/A

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