Single-average wage workers in Europe were paying about one-third of their wages in taxes in 2022, according to the European Tax Foundation. 

Unsurprisingly, tax burdens across Europe vary significantly, with workers in Western European and more developed countries paying considerably more, Euronews reported on Tuesday.

Denmark (55.9%), Austria (55%), Portugal (53%), Sweden (52.3%), and Belgium (50%) are some of the countries with the highest personal income tax rates. 

On the other hand, Romania (10%), Bulgaria (10%), Bosnia and Herzegovina (10%), Kosovo (10%) and North Macedonia (10%) are the European countries with the lowest taxes. In Albania, this rate is 23%, the highest in the Western Balkans region.

For Eastern and Southeastern European countries such as Romania, Bulgaria, and Bosnia and Herzegovina, which are still developing their infrastructure and economies, lower taxes are a way to attract and hopefully retain foreign investment.

These countries often provide cheaper labor and production costs, tax breaks, and a wealth of untapped markets and opportunities. Not only that, but they can also often provide a better standard of living, due to the cost of living being significantly cheaper than most Western European countries.

Not only that, but Southern and Eastern Europe also has some of the fastest-growing economies, with Bulgaria, North Macedonia, Romania, and Cyprus all being seen as the next growth spots for several companies and industries.

However, in recent months, countries such as Romania have been trying to increase taxes for employees in the software sector. The government is also trying to remove health insurance payment exemptions for construction, food, and agriculture sector employees, to increase tax income.

Are higher salaries offsetting the high tax burden for some? In some cases, average salaries in higher taxing countries such as Denmark and Austria are also higher, which has gone a long way in alleviating some of the financial pressure. According to Eurostat, the average salary in Denmark in 2022 was about Euro 62,972.33, while, in Austria, it was Euro 68,690.65.

That was due to more open wage negotiation, for example, because of Denmark's flexicurity labour model, as well as a higher emphasis on education and career-long learning. Some countries also experience more demand in high-paying sectors such as finance, banking, law, and medicine.

Could advancing inflation compound tax burdens? Inflation is also another factor that could make tax burdens potentially feel heavy. This is especially true following the Russia-Ukraine war that has seen energy and food prices soar over the past few years. Other conflicts, such as the Israel-Hamas war, have also added to the mix, with Red Sea disruptions further fuelling adding to energy and other goods prices.

If this trend continues, rising consumer prices will also put more pressure on people's wallets, thus making higher taxes feel more difficult.

However, surprisingly, not all citizens are unhappy about higher taxes, including in Denmark, where taxes can reach an eye-watering 55.9%.

In this case, many citizens consider the payment to be an investment in the collective future of the country and society, or akin to buying a certain quality of life. To note, Denmark was ranked the second happiest country in the world for the fourth year in a row, according to the 2023 World Happiness Report.

This allows all segments of society, regardless of gender, socio-political or economic standing, to take advantage of the same opportunities, thus considerably reducing economic and social burdens. Most education, especially higher education in Denmark is free, with college students also receiving a