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Europe’s 11 Countries with The Lowest Taxes
Introduction
List of Countries
1. Bulgaria
2. Bosnia and Herzegovina
3. Montenegro
4. Belarus
5. Georgia
6. Albania
7. Ukraine
8. Macedonia
9. Moldova
10. Russia
11. Serbia
FAQs
Introduction
Europe is known worldwide for its high taxes, but that doesn’t mean that all the countries on the continent are equal in this matter. Some countries indeed have much lower taxes than others, even lower than some of the tax rates in the United States.
If you’re looking to relocate, start a business, or invest in Europe, you may want to consider the countries with the lowest taxes. In this article, we will go over Europe’s 11 countries with the lowest taxes.
List of Countries
1. Bulgaria
Bulgaria is the country with the lowest taxes in Europe. The flat tax rate in Bulgaria is only 10%, and there are no social security contributions for employees. Corporate tax is also low, at 10%, making Bulgaria an attractive option for businesses.
2. Bosnia and Herzegovina
Bosnia and Herzegovina have a flat tax rate of 10%, the same as Bulgaria. However, social security contributions are necessary, which can increase the total tax burden. Corporate tax in Bosnia and Herzegovina is also 10%.
3. Montenegro
Montenegro has a progressive tax system, with a top marginal income tax rate of 9%. Corporate tax in Montenegro is 9%. Social security contributions are mandatory for employees, but they are relatively low.
4. Belarus
Belarus is known for its low taxes, with a flat income tax rate of only 13%. Corporate tax is also 13%, and there are no social security contributions for employees.
5. Georgia
Georgia is another country with a flat income tax rate of 20%, and corporate tax is also 20%. However, social security contributions are required for employees.
6. Albania
Albania has a progressive income tax system, with a top marginal rate of 23%. Corporate tax is 15%. Social security contributions are mandatory and rate at around 25% of gross income.
7. Ukraine
Ukraine has a flat tax rate of 18%, which is relatively low compared to other European countries. Corporate tax is 18%, and social security contributions are necessary for employees.
8. Macedonia
Macedonia’s income tax system is also progressive, with a top marginal rate of 18%. Corporate tax is 10%. Social security contributions are mandatory, but they are relatively low.
9. Moldova
Moldova’s income tax system is also progressive, with a top marginal rate of 18%. Corporate tax is 12%. Social security contributions are necessary for employees.
10. Russia
Russia is known for its low taxes, with a flat income tax rate of 13%. Corporate tax is 20%, and social security contributions are required for employees.
11. Serbia
Serbia’s income tax system is progressive, with a top marginal rate of 20%. Corporate tax is 15%. Social security contributions are necessary for employees.
FAQs
Q: Which country has the lowest overall tax burden in Europe?
A: According to the Tax Foundation’s Index of Economic Freedom, Bulgaria has the lowest overall tax burden in Europe.
Q: Is it easy to relocate or start a business in these countries?
A: The ease of relocation or starting a business can vary depending on the country, but many of the countries on this list are actively trying to attract foreign investment and have made strides in improving their business climate.
Q: How do these tax rates compare to the United States?
A: Some of the countries on this list have lower tax rates than some states in the US, such as California and Oregon, which have top marginal rates of 13.3% and 9.9%, respectively.
Q: Are these countries safe to live in?
A: Safety can vary depending on the country and region. It is essential to research the safety conditions of any country you are considering relocating to.
Q: Are there any downsides to living in a low-tax country?
A: While lower taxes may be attractive, it’s crucial to consider the overall quality of life in a country, including its education, healthcare, infrastructure, and social benefits. Some of these countries may have lower rankings in these areas compared to other European countries.