Analysis

European Salary Survey - Ninth Edition

The report

Deloitte Belgium has just released the ninth edition of its European Salary Survey. Organised for the ninth year in a row and carried out in Belgium and 18 other European countries, the report summarises the most pressing findings and highlights with regard to salary costs, net income, net spendable income as well as taxation of passive income and headquarter companies. The survey shows that Belgium no longer ranks among the top five most expensive employers but that it still remains one of the more expensive countries due to the uncapped social security contributions. On the other hand, net income is increasing for the lowest wages thanks to the tax shift.

The report summarises the most pressing findings and highlights with regard to cost for the employer, net income for the employee, net spendable income, and taxation of passive income and headquarter companies.

Belgian taxation of passive income among the highest in 2018  

The European Salary Survey also gauges how taxpayers are further taxed once their net income is on their bank account.

In terms of the taxation of passive income (interest, dividends), Belgium ranks once again 13th for interest and 12th for dividends. The average European tax rate is 26.09% for interest and 26.04% for dividends. This tax rate has remained generally stable in the past five years.

It is noteworthy that Ireland and France lowered their taxes on interest this year, from 39% to 37% and from 24% to 12.80% respectively. In France, however, an additional levy of 17.2% has to be paid (compared with 15.5% last year).

The French government is making significant efforts to attract capital to France again. Not only has taxation on interest and dividends been adjusted, but now wealth tax applies only to immovable income. Belgium also introduced a 0.15% wealth tax in 2018 on amounts above EUR 500,000 on securities accounts”, Patrick Derthoo concludes.

View the appendix containing the study's full set of graphs

Did you find this useful?