Cynthia Crofoot Rignanese, Esquire
Thinking Globally, Practicing Locally in Central Florida Since 1990

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Taxes Around the Globe

No one really likes to talk about taxes. But I handle tax issues for clients, and am an avid world traveler. Hence this blog!

Tax rates vary in each country, from over 50% to 0% for the average wage earner in the country. Spain, France, and Germany all have the same 30% tax rate for the average citizen, but Germany has the highest average salary. Switzerland and Denmark have the highest pre-tax salaries, but Switzerland's tax rate is much lower.

The salary you negotiate isn't the amount you end up receiving in your paychecks. The primary reason: taxes.

Cap Relo published a study on tax rates and take home salaries in 40 countries, including the United States. 

Often, salary comparisons in different countries don't include tax rates. But the higher a country's tax rate, the bigger the difference between annual pay and take-home pay once taxes are taken out.

A couple of countries in the report have practical tax rates over 50%, while two nations are essentially tax-free for the median earner. This means that two people with similar salaries in different countries can have vastly different paychecks.

Here are some of the 40 countries surveyed and what it means for the average worker:

Denmark: 
Practical tax rate: 56%

Average pre-tax salary: $64,310

Average post-tax salary: $28,227 


US:
Practical tax rate: 18%

Average pre-tax salary: $64,154

Average post-tax salary: $52,344


Switzerland:
Practical tax rate: 2%

Average pre-tax salary: $85,718

Average post-tax salary: $84,006 


India:
Practical tax rate: 0%

Average pre-tax salary: $1,670

Average post-tax salary: $1,670 


Saudi Arabia:
Practical tax rate: 0%

Average pre-tax salary: $21,720

Average post-tax salary: $21,720 

Sources: Insider Incorp. and Cap Relo

        
Wherever you are on the tax scale, it is best to meet with Rignanese & Associates so that we can guide you in how the Florida and tax laws affects you, your business and your estate plan. Let us help you save time, trouble and money by doing proper planning. 

Rignanese & Associates is available to work with clients on their individual strategies. Please reach out to us at our new headquarters at 203 Avenue A, NW, Suite 101, Winter Haven, FL  33881 at 863.294.1114.

Cynthia Rignanese