Tax Laws in Europe at a Glance

Sound tax planning with knowledge of the tax system in a particular jurisdiction is one of the most important and perhaps the trickiest pillars of business wisdom and personal financial health. Tax regulations are subject to frequent changes, so it is important to keep abreast of all the updates and amendments that may directly affect your well-being and plans. 

EU tax policy assumes that every Member State has its own national tax system, and the country in which you are a resident for tax purposes can generally tax your total income, whether earned or unearned globally. Taxable income includes wages, pensions, benefits, income from property or any other source, including business and capital gains from the sale of property from around the world. 

Some countries (for example, Spain, Italy, Cyprus, Malta) are so much more attractive than others in terms of personal income taxes and taxation at large, that many private persons consider the perks of having a second “home”, changing the ‘domicile’, and/or business registration for the sake of beneficial tax implications. 

EU Taxes

Whatever EU country you are choosing to become a tax resident of, you will pay the same taxes as its citizens. However, tax residency is different from citizenship or residency for immigration. It does not oblige and does not lead to a change of citizenship. The status of a tax resident (often referred to as a resident) is always subject to national requirements, such as a specified period of minimum stay in the country,  availability of a local physical address, the center of vital interests, the location of permanent job/business. 

Being unaware of legislation changes is not an excuse. In 2018-2021 many EU countries amended their tax rates and some taxation rules. Therefore we would like our readers to be fully informed, and this article sums up the main taxes and possible allowances/exemptions that you should be aware of if you develop your business or grow assets across Europe. Please note that this article covers data valid in 2021 and does not mention any amendments due in 2022. 

Moreover, specific changes have been made across European countries in response to the COVID-19 pandemic and its economic impacts. This article does not focus on them, but you are welcome to refer to our experts for details.

Doing your taxes is a complex matter, particularly for non-residents. This article provides a general overview of INDIVIDUAL income taxes, but you are always welcome to get professional advice and help from International Wealth financial experts regarding your specific tax situation.

As a bonus, you will find here short takes on our services across the EU and UK:  

  • customized support to applicants for citizenship by investment and residence permits 
  • assistance in the turnkey formation and registration of offshore businesses 
  • customer-specific help in foreign accounts set up 
  • hand-picked handsome shelf companies for sale 
  • other services tailored to your needs. 

We would be glad to provide more detailed information and arrange a free private consultation with our experts if you send a booking request to our e-mail address.

Tax law and taxes in Austria

Austria

Austrian tax residents pay taxes on any Austrian and foreign income. However, nobody is supposed to be taxed twice on the same income: in most cases, Austrian taxpayers residing abroad may be relieved (partially or fully) from Austrian withholding taxes under double tax treaties (DTTs) with other countries where their income will be taxed. Otherwise, general tax relief can be claimed. Non-residents of the country pay taxes on income earned in Austria.

Who is a tax resident in Austria? A citizen of any country who resides in Austria for more than 6 months is considered a tax resident subject to the Austrian taxation system.

Taxable income types in Austria:

  • income from employment and occupation 
  • trade or business income
  • income from capital
  • income from investments and property
  • other income types as defined by law.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • personal insurance (e.g. pension fund insurance)
  • housing construction and refurbishment by authorized professionals)
  • petrol expenses (up to 132 euros)
  • charity donations up to a maximum of 10% of total income
  • child allowances
  • some other expenses.
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in Austria (€)Tax rates
11,000 – 18,00020%
18,001 – 31,00035%
31,001 – 60,00042%
60,001 – 90,00048%
90,001 – 100,000,00050%
100,000,001 and above55%
capital gains tax27.5%
wealth/worth taxNONE
inheritance and gift taxNONE
withholding tax on dividend, interest, and royaltyResident: 0% or 27.5% / 0% or 25% or 27.5% / 0%;
Non-resident: 0% or 27.5% / 0% / 0% or 20%
employee’s social security contributions from 18%

Tax returns are due April 30 of the following year (paper form) or the end of June of the following year (electronic filing). Separate returns are required for incomes subject to Austrian taxation when an individual is resident and for the period in which an individual is a non-resident. Spouses are considered separate taxpayers in Austria.

A short take on our services in Austria:

CompaniesOptional services
A ready-to-use GMBH company with a VAT number, a bank accountVirtual office
Legal address
Notary fee + VAT
Essential bookkeeping services Professional director 

You are also welcome to register a branch, resolve other business plans in Austria with our help. Passports of Austria are among the most powerful ones in the world. We will be glad to offer our fee-based assistance in applying for a residence permit and citizenship.

Tax law and taxes in Belgium

Belgium

Similarly to Austria, all residents and non-residents of the country pay taxes on income earned in Belgium.

Belgian residents also have to pay tax on worldwide income unless the double taxation treaty applies.

A Belgian fiscal resident is a person permanently residing (domiciled) in Belgium or spending more than 6 months a year in the country, also anyone (even without domicile in Belgium) whose main commercial activities / economic interests are based in Belgium. For married couples or legal cohabitants, the tax residency is defined by the place of their family location. However, persons are guaranteed to be regarded as tax residents of Belgium after they have registered in the Listing in the National Register of Individuals / population register of a commune in Belgium.

Taxable income in Belgium:

  • professional / employment income
  • income from dividends
  • real estate income
  • miscellaneous income.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • interest from savings accounts is exempted from taxation up to a limit of €980
  • dividend payments are exempted for the first €800
  • some tax rebates are granted to non-residents, who earn at least 75% of their worldwide professional income in Belgium
  • if your business is going through insolvency, you may apply for tax relief
  • self-employed residents and paid company directors are entitled to a standard deduction for work-related expenses
  • social insurance contributions are deductible from gross income
  • additional exemptions are available for dependent children and certain dependent (e.g. handicapped) household members
  • there are refundable tax credits for pensions, unemployment, sickness and other social benefits, and the tax credit for income taxed abroad
  • some other deductions and exemptions are specified by law.

The personal income tax calculation contains two major elements – the ‘federal PIT’ (at the same rates for tax residents and non-residents) and the ‘regional PIT’ (as surcharges on the federal PIT less all deductions)

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in BelgiumTax rates
Federal Personal Income tax (PIT) on income from the first € 13,540 
25%
over €13,540 – €23,90040%
over €23,900 – €41,36045%
over €41,360 50%
Local (communal) taxes on utilities:
Residents0 – 9 %
Non-residents7%
interest and dividends30%.
capital gains taxexempted (except in some specific cases)
wealth/worth taxannual tax on securities accounts (version 2.0) levied at a rate of 0.15% on the average value of the account in excess of 1 million EUR
tax on securities accounts (TSA)0.15% on the average value of the account in excess of 1 million EUR
inheritance and gift tax, depending on the value, relationship, regioninheritance tax rate varies depending on the region, the value of the assets inherited, and the relationship; gift tax rates vary based on the region and range between 3% and 7%
withholding tax on dividend, interest, and royalty30 / 30 / 30 (+ many exemptions or reduced rates apply)
employee’s social security(incl. healthcare, unemployment, pension, other)13.07%

The tax return is due 30 June. Non-residents file their returns at the end of September or early of October. Spouses are separate taxpayers but are required to file a joint tax return.

A short take on our services in Belgium:

CompaniesOptional services
A shelf BVBA  company with a VAT number, a bank account
Legal address
Virtual office A courier service
Fee for the status amendment (company name, business field) 

We will be glad to help you register your ASBL, open a branch, get a Schengen visa (category C), resolve other issues in Belgium

Tax law and taxes in Bulgaria

Bulgaria

Residents pay taxes on income generated within and outside Bulgaria, non-residents pay taxes only on income earned in Bulgaria.

Persons residing in the country permanently or for more than 6 months during one year are considered Bulgarian tax residents. Each spouse in Bulgaria is taxed separately.

Income taxable in Bulgaria:

  • income from employment, including all fringe benefits and benefits in kind 
  • capital gains and investment 
  • rental income or income from disposal of real estate property located in Bulgaria
  • other types as defined by law.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • income under voluntary pension schemes received upon retirement 
  • travel and subsistence expenses on business trips 
  • interest and discounts on bonds
  • profits distributed in the form of new company shares 
  • donations
  • some other types of income.
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in BulgariaTax rates
any personal income10%
capital gains tax10%
wealth/worth taxnone
inheritance and gift taxInheritance tax varies; donation tax from 3.3% to 6.6%
withholding tax on dividend, interest, and royaltyEU resident: 0%/10%/1%
non-resident: 5% / 10% / 10%
employee’s social security(incl. healthcare, unemployment, pension, other)from 13.78%

The tax return is due 30 April. Spouses are separate taxpayers. No income splitting is allowed.

A short take on our services in Bulgaria:

CompanyOptional services
A shelf EOOD company with a
VAT number, a bank account

Registration of a non-European VAT number 

Bulgaria is one of the most recommended destinations for relocation. If you need help with investments, applications for a second citizenship, or company formation in this jurisdiction, please contact us at the e-mail address or in messengers mentioned on this page.

Tax law and taxes in Cyprus

Cyprus

Cyprus PIT is levied on all worldwide income of individuals who are tax residents of Cyprus. Non-residents of Cyprus pay tax only on certain types of income in Cyprus. The status of a resident for tax purposes is available to persons who stay for or more than 183 calendar days in Cyprus (including the day of arrival but excluding the day of departure). The “60 days” rule applies if the individual meets the following requirements: does not reside in any other country for more than 183 days; is not a tax resident of other countries; has lived in Cyprus for more than 60 days; has economic interests (business, accommodation) in Cyprus.

Taxed types of income in Cyprus:

  • employment, business, self-employment
  • capital gains, dividends, interest
  • rental

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • profits from a permanent establishment (PE) abroad
  • charitable contributions to approved charities
  • annual life insurance premium up to 7% of the insured amount
  • employee contributions to the social insurance fund, individual pension, provident fund contributions
  • some medical fund contributions
  • social grants
  • investments in approved innovative enterprises
  • business expenditures
  • investment in infrastructure and equipment related to the audiovisual industry
  • profits from the production of films, series, and other related audiovisual programs
  • some other exemptions and allowances
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in CyprusTax rates
under €19,500PIT at 0%
€19,501 – €28,000PIT at 20%
€28001 -€36,300PIT at 25%
€36,300 – -€600,000PIT at 30%
> 60,000PIT at 35%
dividends SDC* rate 17%
interest income SDC* rate 30%
rental income SDC* rate 2.25%
capital gains tax20%
wealth/worth taxnone
inheritance and gift taxnone if up to a 3rd degree relative
withholding tax on dividend, interest, and royaltyresident corporations: 0% / 30% (only on ‘passive’ interest) / 0%;
non-resident: 0% / 0% / 10% (if some rules apply)
employee’s social security contributions 8.3%

*SDC (Special Defence Contribution imposed only on dividend, interest (most types), and rental income) applies instead of PIT. Tax residents not Cyprus domiciled and non-tax residents are exempt from SDC for all their income.

Taxpayers’ tax returns submission deadlines vary: employees and pensioners, self-employed individuals with an annual turnover of and under EUR 70,000  – by 31 July,  self-employed individuals with annual over EUR 70,000 – 1 March 2022 and 1 August 2021. Every individual submits electronically, separately. 

The tax return is due 30 April.

A short take on our services in Cyprus:  

CompanyOptional services
A ready-to-use company with a registered office, a receptionist, a professional director/shareholder, a VAT number, a bank accountVirtual office
Director replacement
Monthly accounting 

If you decide to open a non-resident company in Cyprus and/or open corporate accounts in Cyprus on favorable terms, learn about banking fees for non-residents, apply for a second citizenship,  learn about the current situation in Cyprus, we recommend our expert advice and assistance in whichever questions you may have about this jurisdiction. 

Tax law and taxes in Denmark

Denmark

All residents in Denmark are subject to Danish tax on their worldwide income. All persons permanently residing in the territory of Denmark or more than six months a year are considered residents of the country and must pay taxes on all income both inside and outside the country.

Non-residents pay tax only on income received within Denmark.

Taxable income in Denmark:

  • employments and business, self-employment income
  • some allowances
  • some employee benefits (staff loans, company car, free telephone, free residence, free pleasure craft, free radio and media licence, free food and accommodation according to the rates of the Danish Ministry of Taxation – not included in your salary/wage
  • some foreign pensions
  • capital gains
  • some dividends and interest
  • rental
  • some other income types.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • social security contributions and in some cases foreign social security contributions are deductible from personal income for tax purposes
  • employers’ gift cards to employees with an amount limit of DKK 1,200 in the income year 2021
  • some bonuses in kind
  • tax deduction for some craft services (up to DKK 25,000)
  • reimbursement of moving costs by the employer
  • some employee benefits (traveling expenses from home to work, traveling expenses necessitated by different workplaces, contributions to unemployment insurance, membership fees to professional trade associations, and union subscriptions, technical literature, work clothes, etc.) – all up to DKK 6,500 / year in 2021
  • some charity under DKK 17,000 / year in 2021
  • some resident’s personal and spousal deductions (if you are as a spouse in Denmark and unemployed, your partner can claim your personal allowance
  • tax reduction as foreign scientist/researchers or highly-paid employee
  • some other expenses

Besides the national income tax, there are other taxes: municipal tax, regional tax, labor market tax, church tax, property taxes, luxury and excise taxes, stamp taxes), some other taxes.

The marginal total tax rate cannot exceed 52.06% (2021).

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in DenmarkTax rates
state tax (bottom) on income under DKK 544 80012.9%
state tax (top) on income over DKK 544 80015%
municipal tax (average)24.971%
expatriates’ (employed by a Danish resident employer) salary income tax32.84%
expat scientists’ (assigned to Denmark) cash salary income tax (special rules apply)27%
labor market tax8.0%
labor market supplementary pension (ATP) taxDKK 1,135.8
capital gains taxsubject to the normal PIT rate
wealth/worth taxnone
inheritance and gift tax15%
withholding tax on dividend, interest, and royaltyResident: 27% / 22% / 22%
Non-resident: 27% / 22% / 22%
employee’s social security(incl. healthcare, unemployment, pension, other)the Danish social security system is financed primarily through ordinary tax revenue and only very limited social security contributions for employees and employers.
Church tax0.669%

The tax return is due 1 May (for the pre-printed tax assessments) or 1 July. Any overpaid tax is refunded. Ownership of property in other countries than Denmark must also be reported.

A short take on our services in Denmark:

CompanyOptional services
A Danish ready-to-use Limited company with a VAT numberLegal address Virtual office 

Denmark is on the list of countries offering special benefits to some businesses. Please consider our help with your business plans, setting up an IBC offshore company in Denmark in our articles about starting offshore firms in Europe.

Tax law and taxes in Germany

Germany

All German residents – people who live in Germany for more than 6 months of the year pay income tax on all earnings received in Germany, as well as worldwide. Non-residents of the country are required to pay tax only on income earned in Germany. Nationality/citizenship is not a criterion for residence or tax liability in Germany. The tax residency status is defined by the ownership or availability of some residential property in Germany where an individual is physically present for more than six months in any one calendar year.

Taxable income in Germany:

– income from employment (business, trade, employment)

– capital investment

– rents and royalties

– other types as defined by law.

The taxable cumulative income amount is computed after deductions for each category, which may be further reduced by lump-sum deductions or by the actual payment of special expenses.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • child benefits
  • childcare, schooling, and education costs
  • employment expenses
  • relocation expenses
  • church tax
  • some charity donations
  • some other.
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in GermanyTax rates
taxable income from €9,744 to €57,91814%
taxable income from €57,918 to €274,61242%
taxable income from €274,61245%
capital gains tax25%, plus solidarity surcharge
wealth/worth taxnone
inheritance and gift tax50%
withholding tax on dividend, interest, and royaltyresident: 25% / 25% / 0%;
non-resident: 25% / 0% / 15% 
employee’s social security (incl. healthcare, unemployment, pension, other)from 20%

In 2021, the solidarity surcharge tax payable on income tax, capital gains tax, and corporation tax, has been substantially reduced to 5.5% (and abolished for 90% of taxpayers).

Besides, there are other taxes in Germany – motor vehicle tax, TV/radio license fee, dog tax, property sales tax, capital gains tax, real property tax.

The tax return is due 31 July. Spouses in Germany can file a joint tax return as well as separate ones if they are legally separated or one spouse requests otherwise

A short take on our services in Germany:

CompanyOptional services  
Ready-to-use German GMBH companies in different parts of Germany – with the VAT number, a bank account, a registered capital Account with Deutsche Bank
Remote registration
Virtual office
Registration in the Business register
Authorized person for opening the bank account
Expert assistance in Germany and arrangements for formal visits 

Our offer to set up a corporate account in Germany may be a sound solution if you need assistance. Other services and advice are available, so please stay informed about our updates on Germany.

Tax law and taxes in Greece

Greece

All individuals receiving income in Greece, regardless of citizenship or place of permanent residence, must pay income tax. Income tax is levied on permanent residents’ worldwide income. Permanent residency status in Greece is based primarily on the center of vital interests. Non- residents are taxed only on their Greek-source income.

Taxable income in Greece:

  • employments and business 
  • investments
  • rentals
  • some pensions
  • benefits in kind.

The solidarity contribution has been suspended for all types of income, other than employment income and income from pensions in 2021. Only employment income from the private sector is to be exempt from special solidarity contribution in 2022.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • purchases of goods and services for an annual personal living (accommodation, food, clothing, car expenses, telecommunications, education, etc.) either in the Greek territory or in any European Union (EU) territory, the maximum deduction can be EUR 777 for income up to the maximum of EUR 12,000 for a single person or for a married person with no dependants (this ceiling is higher for families with kids)
  • all social security contributions mandatory by law
  • donations and grants of specific instances 
  • parental gifts, as well as gifts between close relatives (up to Euro 800,000), and tax-exempt inheritance of up to Euro 150,000
  • tax amounts paid outside Greece on non-Greek-sourced income (up to the amount of tax payable in Greece)
  • 50% tax break for those who apply and transfer their tax residency to Greece
  • health treatment costs
  • interest income derived from bonds of the EFSF, from senior dept. or treasury bills of the Greek Government
  • specific categories of employment income and pensions (e.g. foreign diplomatic or consular representatives etc.)
  • alimony received
  • allowance, salaries or pensions received due to disability by war victims or their families etc., disability of at least 80% 
  • allowance due to unemployment paid by OAED under conditions 
  • EKAS allowance 
  • payments to recognized political refuges 
  • profit from the disposal of produced electricity to DEH Company or another supplier after joining the “Special development program of photovoltaic systems up to ten (10) KW”
  • there are other important deductions and credits available to help offset income tax in Greece.

Advance payments of income tax on a self-employed individual’s business activity in Greece equal 55% of the tax due.

The contribution of the employer for social security is 25.06% of the salary. The contribution of the employee for social security is 16%.

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in GreeceTax rates
first 0-10,0009%
next 10,00022%
next 10,00028%
next 10,00036%
above 40,00044%
capital gains tax15%
wealth/worth taxnone
inheritance and gift taxcategory a: 10%
category b: 20%
category c: 40%
withholding tax on dividend, interest, and royaltyresident: 5%/ 15% / 20%
non-resident: 5%/ 15% / 20%
employee’s social security
(incl. healthcare, unemployment, pension, other)
From 14.12%

The tax return is due 4 May to 1 June. Tax returned are filed electronically by all people over 18 y.o. irrespective of whether the income earned by them is subject to tax or not. Spouses are taxed separately on their income but can file a joint income tax return if they submit a relevant statement to the tax authorities by the end of February. The taxable income of dependent children refers to the parent who reports the higher income.

A short take on our services in Greece:

CompanyOptional services
A shelf LTD company with a VAT number, a bank account Re-registration of the company takes typically about 2-3 weeks. You will most likely need to pay a personal visit to open a bank account.Monthly Office fee (including the receptionist’s services)
Accounting services
Transfer of shares Brick-and-mortar office Monthly virtual office Change of the business field of the company

Greece is becoming a super attractive destination for immigrant investors. You are welcome to turn to us for help with the Greek program of visas, for HNWIs and other categories, advice for property owners on taxes, other issues.

Tax law and taxes in Hungary

Hungary

Like in most European countries, residents pay taxes on any domestic- and foreign-source income, while non-residents only on income earned in Hungary.

Taxpayers include:

  • Hungarian citizens
  • persons who own real estate in Hungary
  • persons who live in Hungary for more than 183 days per year.

Taxes in Hungary are paid on the following income:

  • wages, including bonuses and reimbursed expenses
  • income from capital gains, dividends, securities, interest; equity compensation
  • rental income
  • benefits received in kind
  • other types as defined by law.

There are no net wealth/worth taxes in Hungary.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • family/child tax allowances (different types specified by law)
  • some benefits in kind such as trade-union-supported recreation, private use of company phones, meals on business trips, small gift once a year, and some ‘other specific benefits’. 
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in HungaryTax rates
all personal taxable income15%
capital gains taxsubject to the normal PIT rate (15%), additional 15.5% may apply
wealth/worth taxnone
inheritance and gift tax18% (or 9% for preferential property)
withholding tax on dividend, interest, and royaltynone
employee’s social security
(incl. healthcare, unemployment, pension, other)
from 13.78%

Tax returns are due 20 May in Hungary. All individuals are required to file separate returns

A short take on our services in Hungary:

CompanyOptional services
A shelf company with a VAT number, a bank account Virtual office Legal address (phone, fax, address) VAT  registration
Accounting services 

We are ready to help you with company registration in Hungary and other relevant issues,  including the corporate reporting  and tax payment chores.

Tax law and taxes in Ireland

Ireland

Irish income tax is imposed on the worldwide income of an individual who is resident and domiciled in Ireland. A non-resident individual is generally liable to Irish income tax on Irish-source income only. Residents not domiciled in Ireland are liable to Irish income tax on Irish-source income, foreign-employment income earned while carrying out duties in Ireland, and other foreign income to the extent that it is remitted into Ireland.

Taxable types of income are:

  • employment and business
  • in cash benefits, arising from an office or employment
  • non-cash benefits from an office or employment – the use of a car, accommodation, other assets or loans at low-interest rates, medical and life insurance plans, and some pension plans, some others
  • in cash and some in-kind benefits, arising from non-Irish employment (certain rules apply)
  • free or discounted shares awarded by an employer
  • all share-based remuneration
  • capital gains
  • rental income.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • income received by certain individuals aged 65 years or over if their income is above a specified limit
  • allowances received by incapacitated individuals
  • charity donations
  • rented residential property
  • childcare income (up to €15,000 earned by an individual from taking care of up to three children in the individual’s own home
  • gains up to €50,000 earned by certain writers, composers, and artists
  • profits from the occupation of certain woodlands
  • profits from lotteries
  • dues to unions and compulsory contributions to professional colleges, up to €  500
  • legal defense expenses, up to € 300
  • health insurance premiums paid by the self-employed person (specific rules apply)
  • alimony and child support payments to an ex-spouse
  • annual contributions to qualifying pension plans up to € 2,000 per year
  • capital losses arising from transfers of assets
  • other expenses and deductions specified by law

There are no local income taxes in Ireland.

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in IrelandTax rates
single and widowed person: no dependent children income up to € 35,30020%
single and widowed person: no dependent children income over € 35,30040%
married couple: one income up to € 44,30020%
married couple: one income over € 44,30040%
married couple: two incomes (of at least € 26,300 each)income up to € 70,60020%
married couple: two incomes (of at least eur 26,300 each)income over €70,60040%
capital gains tax33%
dividend withholding tax (DWT)25%
deposit Interest Retention Tax (DIRT)33%
wealth/worth taxnone
inheritance and gift tax33%
withholding tax on dividend, interest, and royaltyresident: 25% / 20% / 20%
non-resident: 25% / 20% / 20%
employee’s social security (Pay Related Social Insurance (PRSI charged on employment income, including taxable non-cash benefits; from a trade or profession or from investment income) from all earnings over €352 per week. Self-employed persons whose income from all sources is less than € 5,000/year for 2021 are not liable to PRSI.4% 
Universal Social Charge (USC) payable on gross income, including notional pay, after relief for certain capital allowances but before deducting pension contributions – only for individuals under 70y.o.0%-11%

Tax returns are due 31 October (or mid-November if filed electronically. Sounses may opt to file jointly or separately. Payment of tax under the self-assessment system is made in two installments.

A short take on our services in Ireland: 

CompanyOptional services
A shelf LIMITED companyVAT registration
Accounting services
Legal address/mail forwarding services

There are many reasons for acquiring residence permits in Ireland. You may rely on our assistance, including help in company registration and formation in this jurisdiction.

Tax law and taxes in Italy

Italy

An individual is considered an Italian resident for tax purposes if, for the greater part of the fiscal year (over 183 days) he/she is 

registered in the Records of the Italian Resident Population, or owns a ‘residence’ in Italy, or has a domicile/principal center of interests in Italy. Tax resident individuals are subject to pay the Italian and worldwide taxes (double tax treaties (DTTs) between Italy and other countries shall apply, otherwise foreign tax relief for the taxes paid abroad can be claimed). Real estate and financial investments owned outside of Italy are subject to the wealth tax. The main income tax is the personal income tax (PIT). Non-resident individuals are subject to PIT (IRPEF) only on ‘income produced’ in Italy.

3 types of income taxes in Italy:

  • National income tax
  • Regional income tax
  • Municipal income tax.

Taxable types of income:

  • employment income, including (up to some limits) employment-related travel allowances, relocation allowance, moving expences, employer contributions, housing benefits, etc.)
  • business income.
  • self-employment income
  • real estate income
  • investment income
  • capital gains

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • employee’s mandatory social security contributions
  • contributions paid to the specific complementary pension funds (deductible up to € 5,164.57) and voluntary social security contributions paid to the mandatory pension scheme
  • medical expenses for disabled individuals
  • alimony paid to a separate or divorced spouse
  • charitable contributions
  • capital gains/losses on income items of the same nature or sale of shares
  • some other deductions, exemptions, and allowances.
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in ItalyTax rates
up to €15,00023%
€15,001 – €28,00027%
€28,001 – €55,00038%
€55,001 – €75,00041%
> €75,00143%
regional income tax rate 1.23% – 3.33%
municipal income tax0 – 0,8%
capital gains taxsubject to the normal PIT rate
wealth/worth taxon real estate properties outside of Italy (IVIE): 0.76%;on investments owned outside of Italy (IVAFE): 0.2%.
inheritance and gift tax8%
withholding tax on dividend, interest, and royaltyresident: 0% / 0% or 26% / 0%
non-resident: 26% / 26% / 30%
employee’s social security(incl. healthcare, unemployment, pension, other) Around 10%

The tax return Dichiarazione dei Redditi is due 30 November electronically. In Mod. 730 simplified tax returns on ordinary taxation are filed electronically by 30 September. Spouses are not allowed to file returns jointly.

A short take on our services in Italy: 

At the moment we do not have ready-made companies for sale in Italy, but we can register a new company for you. The fees for company registration in Italy, our services of opening a bank account and accounting depend on the amount of assistance you request. The Italian two-year residence permits can be obtained with our assistance on exceptionally favorable terms. Besides, we can help you choose and buy some real estate in Italy.

Tax law and taxes in Latvia

Latvia

Latvian residents pay Latvian income tax on their worldwide income, non-residents are liable to income tax on their Latvian-source income.

Residents are individuals with the registered (declared) place of residence in Latvia, or staying in Latvia for 183 days or more during any 12 months, or Latvian citizens employed abroad by an employer registered in the Republic of Latvia.

Taxable types of income:

  • employments, some allowances
  • business and self-employment
  • capital gains (include real estate, shares, investment fund certificates, debentures, and intellectual property)
  • dividend income, interest income, alienation of bonds, and income from life insurance contracts and private pension funds
  • participation in controlled foreign entities.

There are no net wealth/worth taxes in Latvia.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • any income arising on the exercise of stock options (certain rules apply)
  • business expenses (up to 80% of taxable operating income)
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in LatviaTax rates
under €20,00420%
€20,004- €62,80023%
over €62,80031%
Withholding tax on royalties under/over €25,00025% / 40% 
capital gains tax20%
wealth/worth taxnone
inheritance and gift taxno inheritance tax, gifts are taxable as ordinary income unless exempt
withholding tax on dividend, interest, and royaltyresident: nonenon-resident: 0% / 0% / 0%
non-resident in tax haven: 20% / 20% / 20%
employee’s social security contributions 10.5%

Annual tax return needs to be filed between 1 March and 1 June in the year following the year of assessment. The deadline in 2021 was from 1 April to 1 July. Tax returns are required to be filed individually by every person whose annual income exceeds € 62,800 (in 2020, in 2021), and also by individuals who are self-employed or need to pay additional PIT as a result of misapplied allowances or tax rates. An individual may voluntarily file a tax return to request a tax refund. Husbands and wives may not file joint returns. If a person’s total income from capital gains does not exceed € 1,000 quarterly, a capital gains tax return is due 15 January in the following year. If it is above € 1,000 quarterly, a capital gains tax return should be filed quarterly by the 15th day of the month following the quarter in which relevant income was earned.

A short take on our services in Latvia:

CompanyOptional services
A shelf SIA company with a VAT number, accounting services for 1 year, a virtual office for 1 year, a bank account Legal address
Virtual office
Professional director
Extra accounting services 

Please consider our recommendations and offers regarding banking, as well as investing in Latvia. Your business accounts in Latvia can be arranged faster with our help. Such remote services will be particularly convenient to faraway non-residents. Please note quite competitive rates for private banking.

Tax law and taxes in Lithuania

Lithuania

Lithuanian residents pay Lithuanian income tax (PIT) on their worldwide income, non-residents are liable to PIT only on some Lithuanian-source income (like employment-related income, certain interest income, income from distributed profits and payments by the Board, royalties, income from sports activities, performing activities,  lease of immovable property, some other types of revenues).

Lithuanian tax residents are permanent residents and persons who stay in Lithuania, continuously or intermittently, for 183 or more days during the tax period or 280 or more days during several successive tax periods, Lithuanian citizens who receive remuneration for work under an employment contract or any other similar contract, and the compensation of costs of living in another country covered from the state or municipal budgets of Lithuania.

Taxable income types:

Class A (the tax is calculated and withheld by the person making the payment, e.g. the employer)

  • employment income
  • income from sports and performing activities
  • proceeds from the sale or other transfer with title of movable property
  • interest income received by a Lithuanian tax non-resident.

Class B (where tax is paid personally by an individual filing a personal tax return)

  • which is not attributed to A class 
  • rental income.

There are no local, state, or provincial PIT rates, no net wealth/worth taxes, no gift tax, no luxury tax applicable in Lithuania.

Inheritance tax is not imposed in certain circumstances.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • some employee stock options exercised at no cost or for lower than their fair market
  • various welfare allowances
  • inherited income in certain circumstances
  • pension contributions, life insurance premiums
  • income received as a gift from relatives
  • lottery winnings, awards, sport contest prizes
  • some expenses for building finish and any type of its repair, car repair, and childcare services
  • some other deduction and tax exemptions for allowances and compensations set in the Law.
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in LithuaniaTax rates
under € 81,162 (employment-related, payments to Board members, copyright income, etc.)20%
over € 81,162 (employment-related, payments to Board members, copyright income, etc.)32%
dividends15%
other income under €162,32415%
other income over €162,32420%
real estate tax at rates 0.5% – 3%
sickness, maternity, paternity, childcare, and long-term employment allowances15%
capital gains tax20%
wealth/worth taxnone
inheritance and gift tax10% inheritance tax; none gift tax
withholding tax on dividend, interest, and royaltyresident: none
non-resident: 15% / 10% / 10% (0% / 0% / 0% if rules apply)
employee’s social security contributions around 11%

The annual tax return is due 1 May. Spouses file separately. Individuals who do not wish to take advantage of the allowable deductions or who received only Class A income (with income tax correctly withheld and paid by the employer) as well as if the higher PIT rate should not apply, may choose not to file an annual income return.

A short take on our services in Lithuania:

CompanyOptional services
A Lithuanianshelf  Private Limited Company (UAB) with a VAT number, a bank accountVAT registration
Accounting services
Legal address/mail forwarding services
Director or shareholder
Company name change
Company address change 

You are welcome to book our free consultation and fee-based services relevant to Lithuania if you need to register your business, open an account in Euro, apply for a residence permit, learn about IBAN, and other issues.

Tax law and taxes in Luxemburg

Luxemburg

Tax residents reside or stay in Luxembourg for more than 6 consecutive months even if the period is interrupted. Individual income tax is payable on the worldwide income of Luxembourg tax residents, as well as on some Luxembourg-source income of non-residents. 

There are 3 tax classes: 

(1) for single persons, 

(2) for married persons as well as civil partners, 

(3) for single persons with children and for citizens over 65 y.o.

Taxable income types:

  • employees’ income in cash and in kind, including a house, an apartment, a car provided by the employer
  • investment income
  • rental income
  • capital gains.

Other taxes may be levied on wages or profits earned, including social services, medical care, and capital gains.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • employees’ standard deductions of € 540 for job-related expenses (doubled if the spouse/civil partner is also employed)
  • job-related expenses on top of the standard deductions (on tools, specific work clothes, etc)
  • commuting expenses between home and work (up to € 2,574 per year)
  • compulsory national and foreign social security contributions
  • employee’s contributions to the employer-provided pension scheme (up to € 1,200 per year)
  •  (residents’ only) extraordinary charges for health services, accidents, living costs of parents, and so on, exceeding their taxable remuneration
  • kindergarten costs and domestic help
  • child bonus up to the specified amount
  • certain premiums (up to € 672) received for life, sickness, accident, disability, and third-party liability insurance, as well as interest arising on personal loans (for buying a car, furniture, and so forth)
  • some private pension scheme contributions (up to € 3,200)
  • some contributions to home ownership savings plans (up to € 1,344)
  • lottery winnings
  • gifts received from the employer (up to certain limits)
  • redundancy payments (under conditions and limits)
  • debit-interest savings on a reduced or 0% loan granted by the employer (certain limits apply) 
  • overtime payments to employees (under certain conditions)
  • salaries paid to non-resident staying for less than 183 days in the calendar year or if the remuneration is not paid by Luxembourg entity 
  • some other deductible expenses and tax-exempt income. 
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in LuxemburgTax rates
Income tax brackets in 2021
€11,265 – €39,8858.00%-36%
€39,885 and up38.00%
employees’ solidarity tax (contribution to the employment fund)7% (or 9% for taxpayers earning more than EUR 150,000 in tax class 1 and 1a or more than EUR 300,000 in tax class 2)
Non-Residents Income Tax on Income from €11,265.01 to €200,004.018% – 41%
Non-Residents Income Tax on Income from €200,004.0142%
capital gains taxsubject to the normal PIT rate
wealth/worth taxnone
inheritance and gift taxno current information
withholding tax on dividend, interest, and royaltyresident: 15% / 0% / 0%
non-resident: 15% / 0% / 0%
employee’s social security contributions 12.20%-12.45%

The annual tax return has to be filed before 31 March. Tax authorities may grant an extension to this deadline. For example, the deadline for 2020 tax returns was exceptionally extended to 30 June 2021 due to covid. The total income of a family, including the non-salary income of minor children, is taxed together.

The tax return is due 31 March.

A short take on our services in Luxemburg:

CompanyOptional services
A shelf SA (PLC) or SARL (LTD) company with  a VAT number, a bank accountAccounting services
Legal address s
Virtual office
Professional director
Bank account (when not included in the company price) 

You are welcome to book our free consultation and fee-based services relevant to Luxemburg if you need to register a new company, select the appropriate business type, set up an account, apply for a residence permit.

Tax law and taxes in Malta

Malta

Malta residents domiciled in Malta and their spouses are subject to taxation on their worldwide income. Malta residents not domiciled in Malta are subject to taxes only on income arising in Malta and on any foreign income remitted to Malta. All capital gains generated outside Malta are not taxable in Malta. Non-residents are taxed only on income and gains arising in Malta. One has to spend 183 days in Malta to become its tax resident. 

Taxable income types:

  • employment income, including all fringe benefits in kind
  • capital gains and investment
  • dividend income
  • rentals
  • alimony payments received
  • assignments of rights acquired under a promise of sale agreement.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • employment-related expenses, certain business-related expenses
  • alimony payments paid by a taxpayer
  • payment for the maintenance of children
  • fees paid for the services of a facilitator looking after a child with special needs at certain schools 
  • fees paid to some childcare facilities for children under 12y.o.
  • fees paid to private homes for the elderly
  • fees paid to some private schools for children
  • fees paid for certain sports activities of children under the age of 16 years, fees paid for the use of school transport
  • pension income (certain limits and rules apply)
  • some other deductions and exemptions.
Income tax brackets and some other taxes in 2021 (for residents and non-residents) in MaltaTax rates
€12,700- €60,000 for a married resident taxpayer
€9,101-€60,000 for a single resident taxpayer
€10,500-€60,000 for any parent 
15%-25%
> €60,001 35%
registered professional football or water polo players, athletes, or licensed coaches7.5%
recipients of royalty income from qualifying literary works15% of the royalty
part-time work and qualifying overtime15% subject to certain rules, unless standard rates apply
capital gains tax (on real estate properties, jewelry, including intellectual property and securities)around 35%
wealth/worth taxnone
inheritance and gift taxno gift tax, but stamp duty may be due upon inheritance 
withholding tax on dividend, interest, and royaltyresident: 0% or 15% / 0% / 0%
non-resident: 0% / 0% / 0%
employee’s social security contributions Around 10%

Tax returns are due end of June. If a separate computation is chosen, husband and wife file separate tax returns. But spouses can choose who of them will be registered as the taxpayer.

A short take on our services in Malta:

We can offer a package service of counseling about the RMVP program and support in applications for residence or economic citizenship in Malta. Your company can get a Maltese account remotely. There are more than one recommended options for your corporate accounts and personal accounts in this European country. If you need to register a company in Malta, you are welcome to book free private consultations with our experts to discuss all relevant details and the cost of our professional assistance in company formation in Malta.

Tax law and taxes in the Netherlands

Netherlands

To be considered a Dutch tax resident, one has to reside or work in the Netherlands. This status is granted from day one. 

Dutch residents are taxed on worldwide income; non-residents are taxed only on income derived from certain sources in the Netherlands. However, some income earned outside of the Netherlands may be also taxable. Private persons residing in an EU or EEA member state, Switzerland, or one of the special municipalities of the Netherlands (Bonaire, Saba, or Sint Eustatius), and others living outside the Netherlands but paying taxes in the country on most of their annual income, fall under the category of qualifying non-resident taxpayers. They are taxed on more than 90% of their worldwide income and qualify for the same deductions, tax credits, and tax-free allowances as resident taxpayers.

Expat employees (the partial non-resident taxpayer status) who meet certain conditions pay less tax in the Netherlands and can apply for the 30% tax exemption.  

Taxable income types:

In the Netherlands, worldwide income is divided into three different types called ‘boxes’ subject to different tax rates.

Box 1 – income from employment, occasional fees, bonuses, allowances, pensions, social benefits, and homeownership.

Box 2 – income from a substantial interest. 

Box 3 – income from savings and investment.

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • expenses related to one’s work
  • extra-territorial costs (incurred by foreign employees in the Netherlands), such as double housing, language courses, costs related to residence permits, exchanging driver’s license, and home leave
  • alimony paid
  • charitable contributions
  • education expenses
  • medical and disability expenses
  • life insurance premiums
  • some mortgage interest expenses

Non-resident taxpayers can claim a basic allowance in tax Box 3.

Certain tax deductions are available to self-employed residents.

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in the NetherlandsTax rates
box 1 income <  € 35,12927.65% and  tax on excess 9.45%
box 1 income € 35,129 –  € 68,507€ 3,319 and  tax on excess 37.10%
box 1 income > 68,507€ 15,702 and  tax on excess 49.50%
box 2 income26.9 %
box 3 income31%
capital gains taxnone
wealth/worth taxno tax on wealth, but there is a tax on a fixed return on wealth. 
1.60% on the worth of a person’s savings and investments.
inheritance and gift tax depending on the market value of the gift and the relationship with the donor

Inheritance: A tax-free allowance of €2,208 is available to all heirs. After this: on inheritance below €126,723 on inheritance above €126,723

A tax-free allowance of €661,328 is available to spouse/partner and children. After this: on inheritance below €126,723 on inheritance above €126,723.

A tax-free allowance of €20,946 is available to grandchildren. After this: on inheritance below €126,723 on inheritance above €126,723.
10-40%

30%-40%

10%-20%

18%-36%
withholding tax on dividend, interest, and royalty There is a conditional WHT on interest and royalties.Resident: 15 / 0 / 0
Non-resident: 15 / 0 / 0
transfer tax
young first-time buyers are eligible for a transfer tax exemption if the housing value is under €400,000 (the maximum limit in 2021)
2%
employee’s social security contributions 27.65%

There are no local taxes on income in the Netherlands. But there are Water authority lavies, the value-added tax, 

excise duty, taxes on legal transactions, environmental taxes, tax on passengers in cars and motorcycles, import duties

consumption tax for non-alcoholic beverages and other products, tax on heavy goods vehicles, property tax, waste collection charges, street cleaning/maintenance, tourist tax, sewerage tax, movable property tax (e.g., houseboats, portable kiosks). Amsterdam (like many other municipalities in the Netherlands)  collects local taxes from its residents – for the sake of municipal improvements.

Annual tax returns are due 1 May. Spouses are taxed separately. Spouses may benefit from filing joint income tax returns in the Netherlands. Everyone can file their tax return online. In some situations, a paper tax return is required.

A short take on our services in the Netherlands:

CompanyOptional services
A shelf BV company with a VAT number,
a bank account
POA
Virtual office
Legal address
Brick-and-mortar office
Company name change

If you need a European IBAN number, we can recommend accounts in the Netherlands. When you need advice on whether to buy a shelf company or register a new one, we will be glad to discuss this issue with you and help you find a good solution. The Dutch business environment, education, advanced research community, and other strengths make this jurisdiction one of the most recommended countries for international business.

Tax law and taxes in Poland

Polish tax residents pay PIT on their worldwide income. Non-residents are subject to Polish PIT on their Polish-sourced income only. 

Taxable income types:

  • employment income
  • capital gains
  • dividend and interest income

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • 130 types of income are tax-exempt, including reimbursement of an employee’s costs, business travel costs, etc.
  • charitable contributions
  • internet connection expenses (for 2 years only) up to a certain amount
  • the money value of blood donated for free
  • contributions to pension and disability insurance plans, social security contributions
  • rehabilitation expenses
  • thermo-modernisation relief
  • other deductions and exemptions.

The tax-free income amount is set at PLN 8,000.

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in PolandTax rates
up to 85,528 PLN 17% (or 0% for tax payers under 26y.o.)
> 85,528 PLN32%
all income of self-employed19%
Non-residents’ income unless a DTT between Poland and the individual’s country of residence applies20%
capital gains taxtransfer of real property: subject to the normal PIT rate transfer of shares: 19%
wealth/worth taxno current information
inheritance and gift taxno current information
withholding tax on dividend, interest, and royaltyresident: 19% / none / none
non-resident: 19% / 20% / 20%
employee’s social security contributions 13.71%

Annual tax returns are due 30 April. Spouses are taxed separately. Spouses may benefit from filing joint income tax returns

A short take on our services in Poland:

CompanyOptional services
Ready-to-use companies with a VAT number, bank account, registered capital Legal address
Virtual office
Legal translation of documents
Company name change 
Bank account
Basic bookkeeping services 

If you decide to register a small business in Poland or buy some real property,  we can help you choose a lovely apartment in Krakow, Warsaw, other cities of your liking in this European jurisdiction.

Tax law and taxes in Spain

Spain

Persons receiving income in Spain are required to pay one of two types of PIT. Spanish residents are subject to Spanish Income Tax (PIT) at progressive rates on their worldwide income.  Non-residents Spanish Income Tax (NRIT) is paid by individuals who receive income in Spain but who are not Spanish residents for tax purposes (they stay in Spain less than 183 days / year). 

Residents also pay capital gain tax. 

Taxable types of income are:

  • general income in cash or in kind (employment, business, fees, lease income, company or group shares awarded, lottery prizes, some allowances, alimony received, non-exempt grants, other income that is not savings taxable income)
  • savings (dividends, interest, disability income insurance, capital gains generated from transfers of assets, some other savings).

Some deductible expenses and income that can be relieved (partially or fully) from PIT:

  • some literary, artistic, and scientific awards
  • severance pay for dismissals, up to € 180,000
  • social security benefits/allowances due to total permanent incapacity for work or sever invalidity
  • social security contributions for certain categories of residents
  • child support received by a parent following a court judgment
  • employment income earned for work carried out abroad (specific rules apply)
  • investments in shares in newly or recently-created companies, and reinvestments of these shares (specific restrictions apply) 
  • EU citizens may deduct all costs incurred for the maintenance of the property
  • other income types as specified in legislation

Interest is tax-exempt for EU residents. Double taxation treaties (DTTs) normally establish lower rates for taxes on interest, dividends, royalties.

PIT rates:

Income tax brackets and some other taxes in 2021 (for residents and non-residents) in Spain
Income tax brackets in 2021Tax rates
<€ 6,00019%
€  6,000 to €  50,00021%
€  50,000 to €  200,00023%
>€ 200,00026%

NRIT rates:

Taxed income in 2021Tax rates
Non-residents from EU and EEA states with which there is an effective exchange of tax information 19%
Other non-residents24%
PensionsFrom 8% to 40%
capital gains taxresidents: 26%
non-residents: Capital gains generated as a result of a transfer of assets are taxed at 19%
wealth/worth tax3.5% according to the state tax scale
inheritance and gift tax34% according to the state tax scale
withholding tax on dividend, interest, and royaltyresident: 19% / 19% / (19% or 24%)
non-resident: 19% / 19% / (19% or 24%)
employee’s social security
(incl. healthcare, unemployment, pension, other)
from 6.25% (and special rules apply to some categories of residents)

The tax return is due 2 May to 30 June. Families may file their returns jointly or separately. Non-residents are taxed on an individual basis

A short take on our services in Spain:

CompanyOptional services
A ready-to-use SL company with registered capital and a VAT numberBank account
Registration of the European VAT
POA
Province change
Legal address/mail forwarding services

Our recent review of options for acquiring citizenship in Europe includes updates on legal residence in Spain. You are welcome to request our help with obtaining a Golden Visa and use our safe solutions in other citizenship matters, company cormation, and banking in Spain.

Tax law and taxes in the UK

UK

Residents domiciled in the United Kingdom are taxed on their worldwide income and capital gains. UK non-residents are usually be taxed on their UK-source income, but not on capital gains (even if the asset is located in the United Kingdom). Residents not domiciled (and not deemed domiciled) in the United Kingdom can opt for the remittance basis of taxation. One qualifies for the status of a tax resident when meeting certain requirements: spending at least 183 days in the United Kingdom in the year,  working full-time in the United Kingdom for a period of 365 days, having a family, a  home in the United Kingdom, other conditions.

Taxable income types: 

  • employment income, business income, 
  • equity compensation
  • capital gains, dividend income, 
  • interest, dividends
  • rental income
  • intellectual property
  • relevant foreign income (RFI)
  • UK pensions and foreign pensions
  • gifts to kids in any amount above GBP 100 (taxed on the parent).

Some deductible expenses and income that can be relieved (partially or fully) from the taxable base:

  • the first GBP 1,000 of interest from savings
  • lottery and betting prizes
  • most gifts
  • income from individual savings accounts (ISAs)
  • employment expenses
  • charitable contributions
  • contributions to pension schemes up to a certain level
  • tax-free personal allowance (GBP 12,570)
  • business-related expenses of self-employed individuals
  • trading losses
  • other deductions and exemptions as specified by law.
Income tax brackets in 2021Tax rates
up to GBP 37,70020%
GBP 37,700– 150,00040%
over GBP  150,00045%
capital gains taxtransfer of real property: subject to the normal PIT rate
transfer of shares: 19%
wealth/worth taxnone
inheritance and gift taxIf there’s inheritance tax to pay, it’s charged at 40% on gifts given in the three years before death. Gifts made three to seven years before death are taxed on a sliding scale known as ‘taper relief’
withholding tax on dividend, interest, and royaltyresident: 0% / 20% / 20%
non-resident: 0% / 20% / 20%
employee’s social security contributions from 11.28%

The tax return is due 31 January. Spouses and civil partnerships are independently taxed, and each files their own tax return.

A short take on our services in the UK:

CompanyOptional services
A shelf LTD company with a VAT number 

The company ownership transfer in the UK usually takes 48 hours, a bank account set up takes about 10 banking days
Legal address
Virtual office
Bank account
Receptionist 
Certificate of the actual operation 

You are welcome to order our services to help you set up bank accounts in the UK for your personal or corporate needs. You can open accounts with a payment system, a digital bank, or an advanced fintech company in the UK. There are many other options, including a superb combo offer of helping you with company registration and an account in Great Britain

P.S.

Tax planning is a tough task, especially for non-residents. This article offers a general summary of INDIVIDUAL income taxes in some European countries. But you can always get free professional advice and fee-based customized help from International Wealth financial experts regarding your specific tax situation, offshore company formation, foreign accounts set up, second citizenship, residence by investment, relocation, other ambitions requiring professional guidance and support. 

You are welcome to send a request to our e-mail address or messengers given on this page.

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