Where would you pay less tax?
Enter an annual income and compare the effective tax burden across countries. Amounts are converted with indicative rates for comparison only.
How the country comparison works
This tool takes a single input, your gross annual income, and runs it through the tax and social contribution rules of 13 countries at the same time. For each country it calculates income tax, plus the social security or pension contributions that a self-employed person or a company would actually pay on that income. It then adds those two components together and ranks the countries from the lowest total burden to the highest.
Two choices shape every result. The first is your profile: a self-employed individual and a company are taxed on different bases and different rates in most of these countries, so the ranking can reorder completely when you switch between them. The second is your stage of activity, because several countries offer reduced rates or contribution relief when a business is new. Pick the combination that matches your real situation before you read the numbers.
What the effective rate means and why the first year differs
The effective rate is the single most useful figure in the table. It is the total tax plus social contributions divided by your gross income, expressed as a percentage. If you earn 50,000 and the tool shows 14,000 in total charges, the effective rate is 28 percent. Unlike a headline or marginal rate, which only tells you what applies to your top slice of income, the effective rate reflects what you actually part with across the whole amount. It is the honest number to compare across borders.
The first year is shown separately because it is genuinely different, not a rounding quirk. Some countries apply a flat startup rate, waive or reduce social contributions for new registrants, or let you defer part of the bill until the business has a track record. The tool models three stages: first year, years 2 to 5, and at regime, which is the steady state once all introductory reliefs have expired. A country that looks cheap in year one can climb several places by the time it reaches its at-regime rate, so judge a move by the stage you will spend the most time in.
Reading the ranking and the currency caveat
The ranking is sorted by total burden in ascending order, so the country at the top costs you the least on the income you entered. Read it as a starting shortlist, not a verdict. A three or four point gap in effective rate is meaningful; a gap of well under one point can flip with a small change in income or an exchange rate move, so treat near-ties as equivalent.
The currency caveat matters. Income tax brackets and contribution ceilings are defined in each country's own currency. To compare 13 countries on one income figure, the tool converts everything to a common currency using a reference exchange rate captured at calculation time. That rate is a snapshot. Real rates drift daily, and a country whose currency strengthens against yours becomes more expensive to live in even if its tax rules never change. Use the ranking to see the structure of the difference, then confirm the exact liability in local currency before you commit. The figures here are estimates for comparison, not a filed tax calculation.
Frequently asked questions
Does the ranking include social contributions or only income tax?
Both. Each country's total is income tax plus the social security or pension contributions a self-employed person or company pays on that income. This matters because some countries have low income tax but heavy mandatory contributions, and looking at income tax alone would rank them far too favorably.
Why is the same country ranked differently for a person versus a company?
Self-employed individuals and companies are taxed on different bases and rates in most of the 13 countries. A company may pay a flat corporate rate plus contributions on a salary you set, while a sole trader is taxed on full profit. Switching profile can reorder the ranking entirely, so choose the one that matches how you actually operate.
What does the first-year stage actually change?
For countries that offer startup relief, the first-year figure reflects reduced rates, waived or lowered social contributions, or deferred charges available only to new registrants. Countries with no such relief show the same number across all stages. Compare the at-regime stage if you plan to stay long term, since introductory benefits expire.
How accurate is the currency conversion?
It uses a reference exchange rate captured when the calculation runs, applied to convert every country's local-currency brackets and ceilings into one comparable figure. It is a snapshot, not a live feed. For countries close in the ranking, a normal exchange rate swing can change the order, so verify the exact amount in local currency before deciding.
Should I choose the country at the top of the list?
Treat the top of the list as a shortlist, not a decision. The tool compares tax and contributions only. It does not account for residency requirements, cost of living, healthcare quality, double-tax treaties, or the practical cost of relocating. A gap of a few effective-rate points is significant; a gap under one point is effectively a tie.
What is the difference between effective rate and marginal rate?
The marginal rate is what applies to your last euro of income, your top slice. The effective rate is your total charges divided by your whole income, so it is always lower than the marginal rate and is the correct figure for comparing the real cost between countries. This tool ranks on effective total burden.