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European Salary Survey - Eighth Edition

The report

Deloitte Belgium has just released the eighth edition of its European Salary Survey. Organised for the eighth 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 moved in two years from the second most expensive country for employers to a fifth place. Although Belgium’s position has improved, it is still placed in the upper half of the ranking due to the uncapped employer contributions.

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 savings tax system ranks in 2017 amongst the high tax countries  

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

With regard to taxation of passive income (interest, dividends), Belgium again moves two positions in the ranking further to the increase of the taxation of dividends (12th place) and interest (13th place) to 30% instead of 27% last year. Also in Luxembourg, the taxation on interest increased from 10% to 20% placing now the country in the sixth position. The European average is 26.78% for interest payments and 26.47% for dividends.

Some countries increased their rate while others went down, making the average rate stable over the years but it is fair to say that Belgium moved from a low tax to a high tax country for passive income,” says Patrick Derthoo, Tax Partner at Deloitte Belgium.

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

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