A salary of €100,000 per year can yield nearly €87,000 in take-home pay in one European country and only about €50,000 in another. A new study has revealed where the tax burden on employees is highest and where it is lowest. Learn more about the ranking of European countries by take-home pay after taxes in 2026

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An annual salary of €100,000 is considered a measure of financial success in most countries worldwide. However, an employee’s actual take-home pay depends not only on the amount specified in the employment contract but also on how much of their earnings must be paid to the government in the form of taxes and social security contributions. That is why two professionals with identical salaries may end up taking home amounts that differ by tens of thousands of euros per year.

A new study by Euronews Business shows how much employees actually take home after taxes from an annual salary of €100,000 in various European countries. The analysis used data from OECD Taxing Wages 2026, PwC Worldwide Tax Summaries, and national tax authorities.

The results demonstrate a huge disparity among European countries. In some countries, employees retain over 85% of their income, while in others, just over half of their earnings remain after all mandatory payments are made.

In the previous article, we provided a ranking of the richest countries in the world in 2026 by GDP.

Doing business is always associated with risks: taxes, contracts, inspections, conflicts with partners or government agencies. A personal business lawyer will help you avoid critical mistakes and protect the interests of the company at every stage of its development.

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Where in Europe do employees keep the most of a €100,000 salary after taxes?

A Euronews study found that employees in Central and Eastern European countries retain the largest share of their income after taxes and mandatory contributions. It is these countries that topped the ranking, outperforming many traditionally wealthy Western European economies.

Bulgaria emerged as the clear leader. From an annual salary of €100,000, an employee is left with approximately €86,930, or nearly 87% of their income. This result is due to one of the lowest income tax rates in the European Union—10%—as well as relatively moderate social security contributions.

The top five countries with the highest net income also include:

1. Bulgaria – €86,930 after taxes

2. Estonia – €74,400

3. Czech Republic – €72,800

4. Malta – €72,500

5. Switzerland – €70,500

Several other countries allow workers to keep more than two-thirds of their annual income. These include Cyprus (€70,300), the United Kingdom (€69,900), Slovakia (€67,855), Norway (€66,900), and Hungary (€66,500).

It is particularly interesting that most of the top-ranked countries are not among the most expensive in Europe. For example, Bulgaria, the Czech Republic, and Hungary have a significantly lower cost of living compared to Switzerland, Denmark, or Belgium.

This means that highly paid professionals can not only keep a larger portion of their salary but also enjoy greater purchasing power from their income.

That is why, when choosing a country to work in, it is important to consider not only the salary listed in the job posting but also the actual amount that will remain after all mandatory deductions.

Net income after taxes on a €100,000 salary in European countries. Source: Euronews Business, 2026.

In our previous article, we discussed how to legally diversify your finances within jurisdictions not included in the CRS in 2026.

Which European countries take the largest share of income through taxes?

At the other end of the ranking are countries with the highest tax burden on high incomes. In these countries, employees with an annual salary of €100,000 give nearly half of their earnings to the state in the form of income tax and social contributions.

The least money remains after taxes in Belgium. An employee with a salary of €100,000 takes home only about €50,750. This means that nearly half of their income goes toward taxes and mandatory payments.

Countries with the highest tax burdens also include:

1. Belgium – €50,750 net income

2. Denmark – €51,500

3. Sweden – €52,000

4. Austria – €54,200

5. Slovenia – €55,060

Compared to Bulgaria, the difference is striking. An employee with the same salary of €100,000 keeps approximately €36,000 more in Bulgaria than in Belgium. In fact, this amount is equivalent to a full year’s salary in many European countries.

At the same time, high taxes do not mean that such countries are unattractive places to live or work. Belgium, Denmark, Sweden, and Austria are traditionally among the European leaders in terms of the quality of public services, the level of social protection, and access to healthcare and educational programs. That is why high tax rates are often viewed as the price paid for a developed social security system.

In our previous article, we discussed which countries have the highest corporate tax rates and where it is more advantageous to set up a company.

Why don’t low taxes always mean a higher standard of living?

The ranking results may give the impression that countries with the lowest taxes are automatically the best choice for working and relocating. However, the real picture is much more complex. Financial well-being is influenced not only by the amount remaining after taxes but also by the cost of living, housing prices, healthcare, transportation, and other daily expenses.

For example, Bulgaria is the undisputed leader in the ranking by net income, yet the average salary in the country is significantly lower than in Switzerland, Norway, or Denmark. At the same time, Switzerland, which also ranks among the top five, combines a relatively moderate tax burden with one of the highest income levels in the world.

Public services, which are funded by taxes, play a distinct role. In the Nordic countries, a significant portion of citizens’ income is returned in the form of quality healthcare, social protection, family support, education, and developed infrastructure. That is why many professionals are willing to accept higher taxes in exchange for stability and a comprehensive package of social benefits.

When choosing a country to work in, experts advise evaluating several indicators at once:

- Take-home pay after taxes

- Cost of housing and daily expenses

- Average salary levels in the industry

- Quality of healthcare and social security

- Career development prospects

Therefore, the ranking of net salaries should be viewed as an important but not the sole criterion for deciding whether to take a job or move to another country.

We previously discussed which countries offer favorable fixed tax conditions for high-net-worth individuals.

Which countries are the most attractive for highly qualified professionals?

For high-income professionals, the tax rate can be just as important as the salary itself. That is why international companies, IT specialists, financial advisors, and executives often compare countries not only by salary levels but also by how much of their earnings they can actually keep.

Bulgaria, Estonia, the Czech Republic, Malta, and Switzerland appear to be the most attractive for high-income earners. In these countries, after taxes, between €70,000 and nearly €87,000 remains from a €100,000 salary.

Several jurisdictions stand out in particular:

1. Bulgaria – one of the lowest income tax rates in the EU and the highest net income in the ranking.

2. Estonia – known for its digital economy, favorable business climate, and popularity among tech companies.

3. Malta – remains one of the key hubs for international business and financial services in the Mediterranean.

4. Switzerland – combines high salaries, competitive taxation, and one of the world’s strongest economies.

5. Cyprus – continues to attract international companies thanks to its relatively lenient tax system.

At the same time, even countries with higher taxes can be attractive to highly skilled workers. For example, Denmark, Sweden, and Norway offer some of the highest salaries in Europe, so the absolute level of income there often remains very competitive even after significant deductions.

For foreigners planning to move to Europe, the key factor is the balance between salary, taxes, and the cost of living. It is this comprehensive approach that allows one to understand where a high income truly translates into a high standard of living.

Investments, opening a company in another country, remote launch of a representative office or team relocation require a clear legal strategy. A personal business lawyer accompanies the entire process: from choosing a jurisdiction and tax model to visa processing and asset protection.

Engage a personal business lawyer and ensure safe relocation and development of your company abroad!

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