Which countries pay the least taxes?

Photo galleryThe lowest taxes are paid in these industrialized countries

It is not uncommon for low tax rates to be paid with restricted civil rights. But it can also be done democratically. In the OECD, a number of countries are tempting with low tax rates. This is especially true from the perspective of German taxpayers.

Tax havens of the OECD

The Organization for Economic Cooperation and Development consists of 36 countries. The OECD has shown the tax burden of its members (excluding Lithuania) in a graph. Taxes and employee contributions to social security were taken into account. These are the ten OECD countries with the lowest taxes.

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# 10 Japan

A single person in Japan had to cede 22.3 percent of gross earnings to the state in 2017. This puts Japan in tenth place in the OECD list of countries with the lowest taxes and well below the OECD average of 25.5 percent. Another Asian country does even better.

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# 9 Spain

German taxpayers can only dream of the tax rates in Spain. Single people in the southern European country pay 21.1 percent. For families with two children and only one earner, the tax rate in 2017 was 13.9 percent. That was pretty much the OECD average (14 percent).

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# 8 Ireland

Ireland, as a tax haven for large corporations like Apple, makes negative headlines again and again. But “normal” taxpayers also get off well on the Emerald Isle. 19.4 percent for single people (around half the tax rate in Germany) puts Ireland in eighth place in the OECD rankings. Ireland is a true paradise for families. According to the OEDC, the model family of four with one earner only pays 1.2 percent tax after deducting transfers such as child benefit.

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# 7 Estonia

The tax rate for single persons in Estonia in 2017 was 18.4 percent. This makes it the EU country with the lowest taxes within the OECD. 4.8 percent taxes were due for families.

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# 6 New Zealand

New Zealand also scores highly among emigrants with its low taxes. The tax rate is 18.1 percent for single people and 6.4 percent for families.

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# 5 Israel

In Israel, citizens are allowed to keep a lot of their wages. The tax for single persons was 17.7 percent in 2017. For the model family with one employed person, the state levied 15 percent taxes.

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# 4 Switzerland

The tax haven Switzerland is also a small alpine paradise for its citizens. With a tax rate of 16.9 percent for single people, Switzerland ranks fourth among the OECD countries with the lowest taxes. Families only paid 3.5 percent of taxes in 2017.