How to pay less tax, legally: tax planning that works
Almost every tax system offers the same few legal levers. What changes is the size of each one, so the country pages list them with their limits. Above about 100,000 a year, most of each extra unit you earn goes to your marginal rate, so the same few moves are worth far more than they are to a lower earner. They fall into four groups, in order of effort: what the law already offers you at home, moving income between years, a regime for new residents, and moving for real. Most executives jump to the last one and skip the first, which costs nothing and needs no change of life. The plan on this site prices the first against the last at your salary. The line that matters throughout is simple: use options the law offers, and never hide income or claim a residence you do not have.
What the regime adds, a year
€19,789
| Net without the regime | €72,671 |
|---|---|
| Net with the regime | €92,460 |
20% for 10 years in eligible roles, not resident in the last 5. Estimate if you qualify, contributions unchanged: a regime is open only to people who meet its conditions.
The four levers, by effort
| Lever | Effort | Main limit |
|---|---|---|
| Pension and allowances | A form | Yearly caps |
| Timing income | A conversation with your employer | Depends on your bands |
| New-resident regime | A move and a claim | Past residence, job, deadline |
| A real move | A change of life | Residence rules, exit tax |
What new-resident regimes change
Estimated yearly net on 300,000 dollars gross, without and with the regime, contributions unchanged. A regime is open only to people who meet its conditions.
| Country and regime | Without | With |
|---|---|---|
| 🇨🇾 Cyprus : the 50% exemption 50% of pay exempt for 17 years, first job in Cyprus after 15 years away | $200,225 | $252,243 |
| 🇲🇹 Malta : the Highly Skilled Individuals rules 15% for 5 years, extendable, in listed offices only, non-domiciled | $202,281 | $251,738 |
| 🇹🇭 Thailand : the LTR visa 17% for highly skilled professionals meeting the income test | $210,823 | $248,689 |
| 🇬🇷 Greece : Article 5C 50% of pay exempt for up to 7 years, not resident in 5 of the last 6 | $169,754 | $235,754 |
| 🇱🇺 Luxembourg : the impatriate regime 50% of pay exempt up to €400,000, recruited from abroad | $171,773 | $235,015 |
| 🇮🇹 Italy : the impatriate regime 50% of pay taxed for 5 tax periods, highly qualified, not resident in the last 3 | $160,285 | $231,130 |
| 🇪🇸 Spain : the Beckham regime 24% for 6 tax years, not resident in the last 5 | $179,971 | $222,994 |
| 🇵🇹 Portugal : IFICI 20% for 10 years in eligible roles, not resident in the last 5 | $147,461 | $207,000 |
| 🇳🇱 Netherlands : the 30% scheme 30% in 2026 and 27% from 2027, up to 5 years, recruited from over 150 km away | $162,792 | $206,430 |
| 🇸🇪 Sweden : the expert relief 25% of pay exempt for 7 years, applied for within 3 months | $167,314 | $205,227 |
| 🇩🇰 Denmark : the key employee scheme 27% for 7 years, no Danish tax in the last 10 years | $157,992 | $201,316 |
| 🇫🇮 Finland : the key employee tax 25% for 84 months, not resident in the last 5 years | $166,239 | $194,619 |
| 🇫🇷 France : the impatriate regime flat 30% exempt until the 8th year after arrival, recruited from abroad, not resident in the last 5 | $161,726 | $193,456 |
| 🇮🇪 Ireland : SARP 30% relief above €125,000 for up to 5 years, assigned by your employer | $162,096 | $181,272 |
Use what the law hands you
Retirement saving is the largest lever for most employees, because it usually lowers taxable income at your top rate up to a cap. Next come family allowances, work expenses and tax-sheltered savings accounts. They are often left unclaimed through not knowing about them.
Time your income
In a progressive system each extra unit is taxed at your marginal rate, not your average. Moving a bonus, a sale or a contribution into a lower year can matter more than a higher rate elsewhere. The country pages show the bands.
What a lever is worth, in plain arithmetic
Deductions are worth your marginal rate, so the figure to know is that rate. At 40%, a €5,000 deductible payment saves €2,000 this year. At 20%, it saves €1,000 for the same effort. That is why the same pension contribution matters far more to a senior manager than to a junior colleague, and why it pays to check the band you are in before you act. A saving this year may also mean tax later if the pension is taxed when it is paid out, so read the country page for that too.
Regimes for new residents
Several countries give new arrivals a reduced rate or an exemption for some years. These open and close often, and each has conditions on your past residence and your job. Each country page gives the current status.
Moving, for real
Moving is the largest lever and the only one that requires changing your life. It works when your residence actually moves, as the guide on tax residency explains, and it may have a cost on departure if you hold shares.
Where the line is
Using an option the law offers is legal. Hiding income, or claiming a residence you do not really have, is not. Between the two, tax authorities can challenge arrangements built only to avoid tax. For a large decision, pay for a tax adviser in both countries: this site gives general information, not advice on your case.
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Questions
What is the difference between tax avoidance and tax evasion?
Evasion means hiding income or inventing facts, and it is a crime. Avoidance means using the rules as written, though authorities can challenge arrangements with no purpose beyond the tax saving. In practice, an option named in the law is safe ground, while a structure that needs explaining away is where you should ask for professional advice.
What is the most effective legal way to pay less?
For most employees it is capped retirement saving, because it usually comes off income taxed at your top rate. For people free to move, a genuine change of residence goes much further, but it changes your life and may carry a cost on departure. The plan on this site prices both at your own salary.
Are these levers the same in every country?
The types recur almost everywhere: pension saving, family allowances, work expenses, sheltered accounts. Their limits and conditions differ widely, and a lever that is generous in one country may not exist in another. Each country page lists its own levers with the official source, so start from the country where you are resident today.
Sources
Figures 2026, checked on