taxes and deductions are minimal
Cyprus employees spend the least in taxes and mandatory contributions in the European Union — 15.1% of the gross salary of a single person without children with an average income. This is the lowest rate in the EU, where an average of 29.1% is retained, and the highest in Romania (41.5%). The calculation according to Eurostat data for 2025 was carried out by Euronews Business.
Cyprus is at the head of the EU in terms of the share of salaries “on hand”
Euronews took the statistics from Eurostat and calculated the ratio of net earnings to gross earnings, and from it — the share that goes into taxes and deductions. For a single worker without children, the average salary ranges from 15.1% in Cyprus to 41.5% in Romania, followed by Greece with 17%. For clarity: the average annual salary in the EU is 37,958 euros before deductions and 26,929 euros after — that is, 11,029 euros goes to the state.
Where do they give the most to the state?
Seven countries send more than a third of salaries to taxes and deductions: Romania (41.5%), Lithuania (39.1%), Belgium (37.6%), Slovenia (36.9%), Germany (34.8%), Denmark (34%) and Hungary (33.5%).
Luxembourg (32.6%) and Croatia (31.5%) are also above the EU average.
At the other pole, there is a dense group with a share below a quarter: the Czech Republic and Ireland (21.6%), Portugal (21.8%), Spain (22.1%), Italy (24.1%) and others. Among the four largest economies of the union, Germany holds the most (34.8%), Spain the least (22.1%); in France, the figure is 26.2%. The south of Europe, as a rule, takes less, the center and the east take more, but geography alone does not explain the differences.
Children dramatically change the picture
Having children significantly reduces the proportion, especially in families with a single employee. The EU average for such families drops to 8% against 29.1% for childless families.
For families with one employee and children, the share ranges from -3.3% in Greece to 33.4% in Romania; in Greece and Poland (-0.6%), it is negative — net income exceeds gross due to benefits and tax refunds. This is most clearly seen in Germany: for a single worker, the share is 34.8%, and for a couple with one breadwinner and two children, it is only 0.2%. With the same gross salary of 47,514 euros, such a family receives 47,424 euros against 31,000 euros for a childless family — a difference of 16,424 euros.
Why is income tax not the whole truth?
Alex Mengden, an economist at the Tax Foundation, emphasizes that it is not the income tax itself that is more important, but the cumulative burden on labor. According to him, in Denmark it is lower than in Poland, but Denmark is at the top of the ranking, because almost the entire burden falls on income taxes; in Poland, social contributions are taken much more, and the country falls to the bottom. Cyprus is in the lead for another reason: the first 19,500 euros of income are not taxed, rates are rising gradually (up to 35% on income over 60,000 euros), and social and medical contributions are moderate.
https://lenta.cy/kipr-lider-es-po-dole-zarplaty-na-ruki-nalogi-i-otchislenija-minimalny/
