Spain takes the smallest share of a skilled salary of the destinations we hold estimates for, at about 23%. Germany takes the largest, at about 38%. The figures are estimates of income tax plus employee social contributions for a single professional on a mid-level salary, from Numbeo + OECD/Tax Foundation.
This is not tax advice. Your rate depends on your income, family situation and region, and treaties change what is taxed where. Use it to compare countries, then get a local adviser before you move.
Effective tax on a skilled salary
| Country | Effective rate (estimate) | What to know |
|---|---|---|
| Spain | 23% | The Beckham Law offers a 24% flat rate for up to 6 years to qualifying new arrivals. |
| New Zealand | 23% | No employee social security contributions; a small ACC levy of about 1.6% applies. |
| United States | 25% (varies widely) | Federal income tax plus FICA; the effective rate swings 5-8 points by state. |
| Australia | 27% | Worldwide income once resident; no employee social security, Medicare levy of 2% included. |
| Portugal | 27% | NHR ended in 2024; its IFICI successor gives a 20% flat rate only to qualifying science and innovation roles. |
| Canada | 28% (varies widely) | Federal plus provincial tax (varies roughly 5-17%), with mandatory CPP and EI. |
| United Kingdom | 28% | Income tax plus National Insurance; residency set by the statutory residence test. |
| Ireland | 33% | Income tax, USC, and PRSI stack; the effective rate reaches about a third by 60-70k. |
| Netherlands | 35% (varies widely) | The 30% ruling (now capped at 5 years) can cut the effective rate sharply for eligible skilled migrants. |
| Germany | 38% | Employee social contributions run near 20% of gross on top of income tax, the highest burden here. |
We do not yet hold a comparable estimate for the United Arab Emirates, Switzerland, France, Italy, Singapore, Thailand, so they are left out rather than guessed.
The rules that changed under people
Special expat regimes are the biggest swing factor, and the ones that change most often. These are the regimes in our data, in each country's current form:
- Spain: The Beckham Law offers a 24% flat rate for up to 6 years to qualifying new arrivals.
- Portugal: NHR ended in 2024; its IFICI successor gives a 20% flat rate only to qualifying science and innovation roles.
- Netherlands: The 30% ruling (now capped at 5 years) can cut the effective rate sharply for eligible skilled migrants.
Plan on the regime as it is today
The traps that catch new arrivals
Becoming resident sooner than you think. Most countries make you tax resident on days of presence or a permanent home, and the tests differ. The UK, for example, sets residency by a statutory residence test.
Your old country keeps taxing you. US citizens are the clearest case: the IRS says citizens living abroad are subject to tax on worldwide income from all sources. Other countries can keep taxing rental income or pensions sourced there after you leave.
Assuming a treaty covers you. Treaties are signed country by country and cover specific kinds of income. Check the actual treaty between your two countries, from the IRS treaty list or HMRC's tax treaties collection, for example. Transita does not hold treaty data, so this guide does not rank countries by treaty network.
Related guides
For New Zealand specifically, see the New Zealand expat tax guide. To see how exchange rates move visa salary floors, read visa thresholds and currency risk.
Frequently Asked Questions
Which country has the lowest tax for expats in 2026?
Of the destinations where Transita holds a tax estimate, Spain has the lowest effective rate on a skilled salary at about 23%, and Germany the highest at about 38%. These are estimates of income tax plus employee social contributions for a single professional, not a quote for your situation.
What tax rules changed for expats recently?
Spain: The Beckham Law offers a 24% flat rate for up to 6 years to qualifying new arrivals. Portugal: NHR ended in 2024; its IFICI successor gives a 20% flat rate only to qualifying science and innovation roles. Netherlands: The 30% ruling (now capped at 5 years) can cut the effective rate sharply for eligible skilled migrants.
Do US citizens pay tax when living abroad?
Yes. The IRS taxes US citizens and resident aliens on worldwide income wherever they live, so moving abroad adds a second tax system rather than replacing the first. Exclusions and foreign tax credits reduce double taxation, but the filing obligation stays.
What is a tax treaty and how does it help expats?
A double tax treaty decides which country may tax which income, and often lowers or removes tax on certain cross-border income such as pensions or dividends. Treaties are bilateral, so what applies depends on the exact pair of countries. Each tax authority publishes its own treaty list.
What are the most common expat tax traps?
Becoming tax resident earlier than expected, keeping income or property in the old country that it still taxes, missing the application window for a special expat regime, and assuming a regime still exists after it has closed.
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