Page 38 - Property Portfolio - October 2019
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When is your
tax freedom day?
pay, it illustrates the general tax burden of each
By Steven Langford, Partner, country and how they compare to each other.
Blevins Franks
The study calculates a “tax liberation day” for
each member state – the date on which an
If you ever had the feeling that you have spent employee has earned enough to pay off all taxes
half your working life just paying tax, you are for the year. It also identifies the average “real tax
not far wrong. What with income tax, national rate” for typical workers in each country (gross
insurance/social security, capital gains tax, salary minus all tax liabilities).
VAT, council tax, excise duties and so on, a
considerable amount of our income goes straight 2019’s report reveals the average tax freedom day
to the taxman each year. across the EU was 12 June, but results ranged
from 8 April to 19 July – a disparity of over 14
Even if you are retired, you are still faced with weeks! Meanwhile, the difference between the
tax on savings, investments and pensions, not to lowest and highest real tax rate was more than
mention the amount payable in VAT each year. double. Remaining at 44.5%, this year’s average
Having paid so many taxes all your life, you will rate broke a four-year trend of slightly declining
not want to pay more than necessary – that’s why taxes.
tax planning plays such an important part in
protecting your wealth. How did Spain fare?
According to the study, Spain’s tax freedom day
Defining the tax burden fell on 8 June, placing it ninth in the rankings.
of typical workers in the EU This means that Spanish employees worked for
For the last ten years, the Institut Economique 159 days of the year just to pay their tax bill.
Molinari has been measuring taxes payable across While this is the same as the last three years, it
the 28 EU member states. While it focuses on is a long way off the 19 May tax freedom day
employees and the tax and social security they enjoyed back in 2011.
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