fbpx

Portugal - two in every five euros earned goes in taxes

1centA report released on Friday by the Organisation for Economic Cooperation and Development (OECD) shows that Portugal increased its income tax rate in 2013 to the point where 2 in every 5 euros earned goes to the government.

Income taxes increased by 3.54% in 2013 which compares with an average increase of 0.2 points across OECD countries.

According to the report 41.1% of the gross salary of a Portuguese citizen with an average salary of €1,000 a month went in taxes and Social Security payments. The OECD average stood at 35.9% .

Unmarried taxpayers are discriminated against as a family with two children actually saw taxes go down 0.4% to 29.8% in 2013.

Overall Portugal has the 12th highest tax burden in all of the 34 OECD countries. The worst place on the list for income tax is Belgium at 55.8%, Germany at 49.3%, Austria at 49.1% and Hungary at 49.0% .

The best place to work in salaried employment was Chile where the state only removes 7% from wage packets, New Zealand at 16.9% and Mexico at 19.2%.

Pin It