SALARIES / JUL. 10, 2014
version 5, draft 5

Top 10 Countries With The Lowest Income Tax For Top Earners In Europe 2014

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If like many Europeans you are fed up with your hard earned wages being pillage by the tax man, then perhaps it is time to relocate. While if you wish to pay no income tax, you will probably have to move out of your comfort zone to somewhere like the Arab Emirates, however, there are some attractive options available within Europe. The countries listed do not offer zero income tax but they offer the lowest income tax available to top earners within Europe. The fact that the majority of the countries are ex-Soviet republics may turn you off the idea of moving there, but you have to adapt in order to save money. So without further ado, here are the top 10 countries with the lowest level of income tax for top earners in Europe.

10: Georgia -20%

With a rate of only 20% Georgia has the highest tax rate on our list. However, it is still very low compared to the EU average of 38.1%. This vibrant ex-soviet state located in the Caucuses has shown remarkable growth in recent years. Much of this can be attributed to their liberal tax policies.  So if you are looking for a growing economy with liberal tax policies, Georgia is a safe bet.

9: Lichtenstein - 17.89%

It is unsurprising that Lichtenstein is in the top ten list as the country has been viewed by many as an extremely small tax haven wedged in between Switzerland and Austria. The country actually has more companies registered there than citizens.  So if you are looking for a wealthy little tax haven with one of the highest standards of living in the world, then Lichtenstein is definitely the place for you, especially if you’re a banker.

8: Ukraine – 17%

Given Ukraine’s recent troubles it is not a particularly attractive place to move to at the moment. Unless you are looking for a serious adrenaline rush involving guns, that is. However, if you fancy a bit of adventure and want a 17% tax rate, the Ukraine is for you.

7: Hungary – 16%

Another ex-soviet republic that is experiencing high economic growth is Hungary. While it is a member of the EU and currently attempting to adopt the Euro currency it still has a very low tax rate. At only 16%, this stable economy is certainly worth a look at if you are thinking of relocating.

6: Belarus – 15%

This is a country that you may want to think twice about relocating to. Despite having a very low tax rate of 15% it still operates as a Soviet Style economy and is quite weak. It has actually been described as the last dictatorship in Europe, due the Authoritarian policies of President Alexander Lukashenko.

5: Russia-13%

Russia has its ups and downs economically, but if you are looking to make money then it is certainly there to be made. It is the largest country in the world and all kinds of opportunities oil and gas being its biggest money makers. And with a top tax rate of just 13% it is quite enticing.

4: Macedonia – 10%

Macedonia which is tied with Bulgaria and Albania in second place is a very attractive European spot for top earners. It is a beautiful country with a modern, growing and stable economy. The country has also low tax rates in order to entice foreign investment and business. A 10% tax rate sounds good to anyone.

3: Bulgaria – 10%

Although Bulgaria has had strong economic growth for many years it is been hit hard recently. It abandoned plans to adopt the Euro and it required EU help to bail out one of its banks. However, it still has the lowest income tax rate in the EU.

2: Albania – 10%

Albania has a good economy and the recent discovery of natural oil and gas deposits helped this. However, the low tax rate is a big incentive to keep investors interested.

1: Montenegro – 9%

The winner in this list sadly does not have a very strong economy, so despite the low tax rate, it is questionable whether or not to relocate there. The economic crisis hit Montenegro hard and the low rate of tax is an attempt to attract more foreign investment. It is yet to be seen whether this will work.

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