Sweden or Portugal: what share of your year do you work for the tax authorities?

Sweden or Portugal: what share of your year is truly yours? In Sweden, on a gross income of EUR 100,000, you work the equivalent of almost five months per year for the tax authorities before a single euro is truly yours. In Portugal: just over three months for the tax authorities. Why in months rather than in an amount? A euro figure assumes you take your salary with you to the new country, and almost nobody manages that. The share that goes to tax, your average effective tax rate, travels with you everywhere. That is why we count in months. The calculation, on EUR 100,000 gross employment income: in Sweden you keep a net EUR 61,043 (effective 39%), meaning the equivalent of almost five months per year goes to the tax authorities. In Portugal you keep EUR 72,021 (effective 28% under the IFICI (English: fiscal incentive for scientific research and innovation) regime), just over three months for the tax authorities. The difference: EUR 10,978 per year. Important: the higher your income, the larger that share becomes, because the system is progressive. The figures here apply at EUR 100,000 gross. On your own income the picture will look different. Calculate your own amount at libaros.com. On paper Portugal is not a cheap country (statutory top rate 53%), but as a newcomer under the IFICI regime you do not pay the full rate. Figures: average effective tax rate on employment income (income tax plus employee social contributions), single individual, current tax year. Indicative, not tax advice. Calculated using the Libaros calculation engine.