Best Countries for Freelancers in 2025: Tax Comparison
We calculated the effective tax rate on EUR 50,000 of freelance income (after EUR 5,000 in expenses) across 21 countries. Here are the results, ranked from lowest to highest tax burden.
| # | Country | Income Tax | Social | Total Tax | Take-Home | Eff. Rate |
|---|---|---|---|---|---|---|
| 1 | Japan | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 2 | Sweden | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 3 | Norway | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 4 | Denmark | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 5 | Finland | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 6 | South Korea | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 7 | Hong Kong | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 8 | Mexico | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 9 | South Africa | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 10 | India | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 11 | UAE | $0.00 | $0.00 | $0.00 | $45,000.00 | 0.0% |
| 12 | Brazil | $2,183.75 | $0.00 | $2,183.75 | $42,816.25 | 4.4% |
| 13 | Nigeria | $3,150.00 | $0.00 | $3,150.00 | $41,850.00 | 6.3% |
| 14 | Switzerland | $424.80 | $2,846.25 | $3,271.05 | $41,728.95 | 6.5% |
| 15 | Australia | $4,288.00 | $900.00 | $5,188.00 | $39,812.00 | 10.4% |
| 16 | United Kingdom | $3,416.00 | $2,125.20 | $5,541.20 | $39,458.80 | 11.1% |
| 17 | Netherlands | $3,416.00 | $2,475.00 | $5,891.00 | $39,109.00 | 11.8% |
| 18 | New Zealand | $6,783.00 | $688.50 | $7,471.50 | $37,528.50 | 14.9% |
| 19 | Canada | $4,394.25 | $3,216.25 | $7,610.50 | $37,389.50 | 15.2% |
| 20 | Ireland | $5,850.00 | $2,904.62 | $8,754.62 | $36,245.38 | 17.5% |
| 21 | United States | $3,416.00 | $6,358.30 | $9,774.30 | $35,225.70 | 19.5% |
| 22 | Singapore | $900.00 | $9,000.00 | $9,900.00 | $35,100.00 | 19.8% |
| 23 | Israel | $4,500.00 | $5,400.00 | $9,900.00 | $35,100.00 | 19.8% |
| 24 | Germany | $3,416.00 | $9,000.00 | $12,416.00 | $32,584.00 | 24.8% |
| 25 | France | $3,416.00 | $9,765.00 | $13,181.00 | $31,819.00 | 26.4% |
| 26 | Spain | $12,351.50 | $2,857.50 | $15,209.00 | $29,791.00 | 30.4% |
| 27 | Belgium | $9,409.83 | $5,881.50 | $15,291.33 | $29,708.67 | 30.6% |
| 28 | Italy | $12,390.00 | $4,135.50 | $16,525.50 | $28,474.50 | 33.1% |
| 29 | Portugal | $12,954.51 | $4,950.00 | $17,904.51 | $27,095.49 | 35.8% |
| 30 | Austria | $9,903.70 | $8,154.00 | $18,057.70 | $26,942.30 | 36.1% |
How We Calculated These Numbers
Every figure in the table above comes from our tax engine, using 2024/2025 tax rates and brackets. We assumed a single freelancer earning EUR 50,000 gross revenue with EUR 5,000 in legitimate business expenses, resulting in EUR 45,000 net profit subject to taxation. No dependents, no special deductions beyond standard allowances.
Social contributions include mandatory health insurance, pension, and any other compulsory payments that freelancers must make. In some countries (like Germany), these can be substantial and are often overlooked when comparing tax rates.
The Winners: Lowest Tax Countries for Freelancers
1. UAE (United Arab Emirates) — 0% Effective Rate
The UAE charges zero income tax on individuals. There is no personal income tax, no capital gains tax, and no withholding tax on salary or freelance income. The only tax is a 5% VAT on goods and services, plus a 9% corporate tax introduced in 2023 for businesses earning over AED 375,000 (about EUR 95,000). For individual freelancers below this threshold, the tax burden is effectively zero.
The downside: high cost of living in Dubai and Abu Dhabi, visa requirements (freelance visas cost around AED 7,500/year), and limited social safety net. You are responsible for your own health insurance and retirement savings.
2. Singapore — Low and Progressive
Singapore's tax system is highly favorable for freelancers. The first SGD 20,000 (about EUR 14,000) is tax-free, and rates stay below 10% for incomes up to SGD 80,000. There is no capital gains tax and no tax on foreign-sourced income not remitted to Singapore.
The CPF (Central Provident Fund) system requires contributions, but self-employed persons only need to contribute to MediSave (the healthcare component), which is around 8-10.5% of net trade income up to a cap.
3. Switzerland — Varies by Canton
Switzerland's effective rate depends heavily on your canton. Zug, Schwyz, and Nidwalden offer very low rates, while Geneva and Basel are higher. The federal rate is modest (up to 11.5%), but cantonal and municipal taxes can double or triple the total. For a freelancer earning EUR 50K in a low-tax canton, the total burden can be under 20%.
4. Ireland — Low Corporate, Moderate Personal
Ireland's famous 12.5% corporate rate attracts businesses, but personal income tax is higher. However, generous tax credits (EUR 3,750 for single persons and employees combined) and the first EUR 42,000 taxed at only 20% make it competitive. USC (Universal Social Charge) adds 2-8% depending on income level.
5. United Kingdom — Reasonable with Good Structure
The UK offers a tax-free personal allowance of GBP 12,570, and the basic rate is 20% up to GBP 50,270. National Insurance for self-employed (Class 2 + Class 4) is relatively low compared to continental Europe. The UK also has a well-developed system for freelancers with clear rules under Self Assessment.
The Middle: Moderate Tax Countries
United States
US freelancers face the self-employment tax of 15.3% (Social Security 12.4% + Medicare 2.9%) on top of federal income tax. The standard deduction of $14,600 helps, but the combined burden for a freelancer earning $50K is typically 25-30%. State taxes can add another 0-13% depending on location.
Germany
Germany has high social contributions for freelancers. If you are a "Freiberufler" (liberal profession), you avoid trade tax but still pay income tax (progressive rates up to 42%) plus solidarity surcharge. Health insurance alone costs 14.6% + supplementary rate. Total burden for a EUR 50K freelancer is typically 35-42%.
The upside: excellent social safety net, including health insurance, unemployment insurance, and pension. The Werbungskostenpauschale (EUR 1,230) and various deductions can reduce the taxable amount.
Netherlands
Dutch freelancers (ZZP'ers) benefit from the zelfstandigenaftrek (self-employed deduction of EUR 5,030) and MKB-winstvrijstelling (14% profit exemption). These significantly reduce taxable income. However, Box 1 tax rates of 36.97% (up to EUR 75,518) and 49.50% above that are substantial. The arbeidskorting (employment tax credit) also applies.
France
France offers the micro-entrepreneur regime for freelancers earning under EUR 77,700 (services). Under this regime, you pay a flat 21.2-22% in social charges on turnover (not profit), plus income tax. For higher earners, the full regime with the quotient familial system applies. Social charges in France are among the highest in Europe.
The Highest Tax Countries
Belgium
Belgium consistently ranks among the highest-taxed countries. Progressive rates reach 50% above EUR 46,440, plus social contributions of about 13.07% for the self-employed. Municipal taxes add another 0-9%. However, Belgium has generous deductions and a well-funded social system.
Austria
Similar to Germany but with even higher social contribution rates for the self-employed (about 26% of net income). Income tax rates are progressive from 20% to 55%. The Gewinnfreibetrag (profit allowance) of up to EUR 46,400 provides some relief.
Italy
Italy offers the "regime forfettario" for freelancers earning under EUR 85,000, with a flat 15% substitute tax (or 5% for the first five years of activity). This is significantly better than the standard progressive rates of 23-43%. If you qualify for the flat rate regime, Italy becomes one of the most attractive options in Europe.
Key Factors Beyond Tax Rates
Tax rate is only one factor in choosing where to freelance. Consider these additional factors:
- Cost of living: A 0% tax rate in Dubai means nothing if your rent is EUR 3,000/month
- Healthcare: Countries with high taxes often provide excellent public healthcare
- Quality of life: Infrastructure, safety, culture, climate
- Visa requirements: Not every country offers easy freelance visas
- Banking and payments: Can you easily receive international payments?
- Professional networks: Where are your clients and collaborators?
- Double taxation treaties: Will you be taxed twice on the same income?
- Social security agreements: Will your pension contributions count in your home country?
Our Recommendation
There is no single "best" country for all freelancers. The optimal choice depends on your income level, citizenship, family situation, lifestyle preferences, and long-term plans. What we can say with confidence:
- For very high earners: UAE, Singapore, and Switzerland offer the lowest rates
- For moderate earners who value lifestyle: Portugal (NHR), Spain, and the UK offer good balance
- For EU citizens who want to stay in the EU: Ireland, Netherlands, and the Italian flat-rate regime are strong options
- For US citizens: You are taxed on worldwide income regardless of where you live, but the Foreign Earned Income Exclusion ($126,500 in 2024) and Foreign Tax Credit can reduce double taxation
Use our Freelance Tax Calculator to run the numbers for your specific situation, or explore the World Tax Map for a visual comparison.