In which European countries do people pay the highest taxes? How is Albania ranked?
2024-02-06 20:31:38
TiranaPost
Average wage earners in Europe paid about a third of their wages in taxes in 2022, according to the International Tax Institute.
The tax burden across Europe varies significantly, with workers in Western Europe and more developed countries paying much more.
Denmark (55.9%), Austria (55%), Portugal (53%), Sweden (52.3%) and Belgium (50%) are some of the countries with the highest personal income tax rates.
On the other hand, Romania (10%), Bulgaria (10%), Bosnia and Herzegovina (10%), Kosovo (10%) and North Macedonia (10%) are the European countries with the lowest taxes. In Albania, this rate is 23%.
For Eastern and Southeastern European countries like Romania, Bulgaria and Bosnia and Herzegovina, which are still developing their infrastructure and economies, lower taxes are a way to attract foreign investment and hopefully keep it.
These countries often offer cheaper labor and production costs, tax breaks and a wealth of untapped markets and opportunities. Not only that, but they can also often offer a better standard of living, as the cost of living is significantly cheaper than most Western European countries.
Southern and Eastern Europe also have some of the fastest growing economies, with Bulgaria, North Macedonia, Romania and Cyprus all seen as future growth hotspots for some companies and industries.
However, in recent months, countries such as Romania have tried to raise taxes on workers in the IT sector. The government is also trying to remove exemptions from health insurance payments for workers in the construction, food and agriculture sectors in order to increase tax revenues.
