COMPARISON OF TAX AND SOCIAL LEVIES IN EUROPE

Bulgaria is the undisputed champion in terms of wage efficiency in Europe.

Indeed, if we compare the cost of a salary for the employer and the amount received by the employee, Bulgaria displays record rates of salary efficiency, far ahead of the other countries analyzed (Romania, France, Luxembourg, Swiss).

The key to this attractiveness lies in two very simple facts:

• Low and above all capped social security deduction rates (equivalent to €580 per month);
• A very competitive tax rate on wages: 10%.

Switzerland (canton of Geneva) is in second place in the ranking established on the basis of a gross salary of €5,000, despite relatively high social charges (31%), but thanks to a relatively low tax rate ( 11%).

Luxembourg is in third place in the ranking, with relatively low social charges (25%) but a high tax rate (20%).

Romania follows suit with comparable efficiency but the opposite construction: onerous tax burdens but a high tax rate.

Last in the ranking, and far behind, France combines the disadvantage of costly social charges and a high tax rate.