Personal Taxation in Europe: How much do Europeans take home from their gross salary?

Discover the key findings of our latest report

Below are some of the highlights from our recent report,

Click here for a downloadable PDF of the full report.

We looked at net salaries across Europe as a percentage of gross pay, i.e. after deducting personal income tax and employee social security premiums. In our calculations we used the average gross salaries in each country surveyed.

Scenario One – Single employee with average salary

In the case of a single employee receiving an average salary, we found that the European average net salary amounts to 73% of gross salary. The personal income tax burden constitutes an average of about 14%. Employee social security costs amount to approximately 13% of gross income.

Countries that enjoy an average net salary higher than 73% in this scenario are: Cyprus, Estonia, the Czech Republic, Spain, Malta, the United Kingdom, Switzerland, Greece, Bulgaria, Ireland, Sweden, Slovakia, Finland, Iceland, Poland.

Scenario Two – Average single income family with two children

In the case of an average single income family with two children, the European average net salary increases to 79% of gross salary, with the personal income tax burden dropping to an average of approximately 9%. Employee social security costs are slightly lower in this scenario at roughly 12% of gross income.

Countries with an average net salary higher than 79% in this scenario are: the Czech Republic, Slovakia, Malta, Ireland, Cyprus, Estonia, Switzerland, Iceland, Latvia, Spain, Poland, Portugal, Austria, Luxembourg, Croatia, Greece, the United Kingdom.

Take-home pay for high earners and employer social security costs

In the full report we reveal the average net salaries across a number of other scenarios – including wealthy single employees and wealthy families with two children. We also present country rankings, by percentage of take-home pay, for each scenario. Moreover, we analyse tax free amounts in specific European countries and compare employer social security contributions, which impact the cost of employment.

Contact us

For a deeper discussion or to review the full findings of the Vialto Personal Taxation in Europe survey, please reach out to your Vialto contact or alternatively:

Mariusz Ignatowicz
Partner, Tax Advisor
mariusz.ignatowicz@vialto.com

Joanna Narkiewicz-Tarlowska
Director, Tax Advisor
joanna.narkiewicz-tarlowska@vialto.com

Grzegorz Ogorek
Senior Manager
grzegorz.ogorek@vialto.com

Marta Chacinska
Senior Consultant
marta.chacinska@vialto.com

Szymon Grzesiak
Consultant
szymon.grzesiak@vialto.com