Low tax, high social security countries 2026

The clearest low tax, high social security countries in 2026 are Romania, Bosnia and Herzegovina and North Macedonia. Each advertises a 10% income tax, but employee contributions of 35%, 31% and 28% push the all-in cost of a US$100k salary to 41.5%, 37.7% and about 35%.

Croatia, Bolivia and Hungary follow the same pattern, with an all-in cost of 33.5% to 35% on the same salary. Czechia, Serbia and Bulgaria have low headline rates and sizeable contributions too, but caps, lower employee rates or a relief for new arrivals bring the bill down.

This guide compares the headline income tax rate with what employees and the self-employed actually pay in social security in each country, and shows the all-in result on US$100k. It uses 2026 rules. If you only look at the income tax rate, these countries look cheap. If you look at your payslip, many of them aren't.

What's changed: Romania now taxes dividends and crypto gains at 16% instead of 10% from 1 January 2026, and the health contribution ceiling for the self-employed rose from 60 to 72 minimum wages. Bulgaria adopted the euro on 1 January 2026 and raised its contribution cap from €2,111.64 to €2,300 a month from 1 August. North Macedonia reset its contribution split from the July 2026 salary, but the employee total is still 28%. In Czechia, the minimum pension base for the self-employed was cut from 40% to 35% of the average wage. Hungary's flat-rate sole traders now treat 45% of revenue as costs, rising to 50% from 1 January 2027. In Bosnia and Herzegovina, the Federation cut employer and self-employed contributions from 1 July 2025, but the 31% employees pay didn't change. Croatia's September 2026 tax package is Proposed, not law.

📋 Low tax, high social security countries in 2026

The graphic shows the headline income tax rate next to the all-in cost of a US$100k salary in eight of these countries in 2026. Romania's 10% tax becomes 41.5%, Bosnia and Herzegovina's 10% becomes 37.7%, and North Macedonia's 10% becomes about 35%. Croatia is about 35%, Bolivia 33.7% and Hungary 33.5%, all rated Poor for employees. Czechia comes to 26.6% (Moderate) and Bulgaria to 13.7% (Good) because of its contribution cap.

How we compare countries

For employees, the scenario is a single person on a US$100k salary from a local employer in 2026, converted into local currency in each country guide. The all-in figure is income tax plus the compulsory social security and health contributions the employee pays. Employer contributions are a real cost of employing you, but they don't come out of your pay, so they aren't counted. Where a regime for new arrivals is open to a typical US$100k hire from abroad, it counts, which is why Serbia is shown with its relief.

For freelancers, the scenario is US$100k of self-employed income under the usual freelancer regime in each country, without new-resident regimes.

Ratings are relative to the 153 countries TaxPilot covers. For both employees and freelancers, an all-in cost of 10% or less is Excellent, 10% to 20% is Good, 20% to 30% is Moderate and over 30% is Poor. Each band includes its upper bound, and the unrounded figure decides, which is why Romania's freelancers, at 20.02%, are Moderate.

Where does a low tax rate come with high social security?

Romania: 10% tax, 35% contributions

Romania is the classic example. The income tax rate on salaries, self-employed profits and pensions is a flat 10%. But before that, employees pay 25% to the pension system (CAS) and 10% for health (CASS), and the 10% tax is then charged on what's left. On a US$100k salary that comes to about 41.5% all-in, rated Poor.

Two things make Romania stand out. There's no ceiling, so the 35% applies to every leu you earn, and the employee pays almost all of it: the employer only adds a 2.25% work insurance contribution. Freelancers do far better, at about 20% on US$100k of profit as a PFA, because the pension contribution is on a fixed base and health is capped at 72 minimum wages. That's a hair over the line, so it's rated Moderate.

👉 National House of Public Pensions (CNPP): 2026 figures (in Romanian)

👉 Romania expat tax guide

Bosnia and Herzegovina: 10% tax, 31% contributions

In the Federation of Bosnia and Herzegovina, income tax is a flat 10% with a personal allowance of KM 3,600 a year. Employees pay 31% contributions on their whole gross salary (17% pension, 12.5% health and 1.5% unemployment), with no upper limit. A US$100k salary costs about 37.7% all-in, rated Poor. Republika Srpska comes out about the same, at roughly 36% to 38%: the salary tax is 8%, but contributions are also 31%.

The self-employed pay 36% contributions, but on a fixed base of 1.1 times the average wage for a free profession, not on actual profit. That brings US$100k of profit to about 16.5%, rated Good.

👉 Tax Administration of the Federation: Law on Contributions, consolidated text (in Bosnian)

👉 Bosnia and Herzegovina expat tax guide

North Macedonia: 10% tax, 28% contributions

North Macedonia has a flat 10% tax on almost all income. Employee contributions of 28% are charged first, and the cap of 16 average salaries a month is far above a US$100k salary. The 10% tax costs only about 7% of pay, and the all-in bill is about 35%, rated Poor.

This is one of the few countries here where freelancers don't escape. Registered sole traders pay about 28% on their net income and 10% tax on what's left, so US$100k of profit costs about 35% too, also Poor. The lump-sum regime is only for small earners.

👉 Public Revenue Office: contribution rates by type and earlier years

👉 North Macedonia expat tax guide

Croatia: 20% tax, 20% pension contributions

Croatian income tax is set by each municipality: 20% up to €60,000 and 30% above where no local rate is set, and up to 23% and 33% in Zagreb. Employees pay 20% of gross salary into the pension system (15% state pillar and 5% private pillar), capped at a monthly salary of €11,958 in 2026. A US$100k salary costs about 35% at default rates and about 37% in Zagreb, rated Poor.

Above €60,000 of receipts, sole traders pay contributions on a fixed monthly base of €1,295.45 rather than on profit, so US$100k comes to about 25% (Moderate), or 28% in Zagreb.

👉 Official Gazette: 2026 contribution bases (in Croatian)

👉 Croatia expat tax guide

Bolivia: 13% tax, about 25% in contributions

Bolivia's RC-IVA is a flat 13%, and employees deduct their pension contributions and two minimum wages before it's charged. On a US$100k salary, income tax is only about 8%. The 12.71% pension contribution and the national solidarity contribution add about 25%, and foreign employees must pay them. The all-in cost is about 33.7%, rated Poor.

The solidarity contribution is charged in bands: 1.15% of pay above Bs 13,000 a month, plus 5.74% above Bs 25,000 and 11.48% above Bs 35,000. Those bands are fixed in bolivianos, so since the currency started to float they bite harder. Freelancers pay about 15.4% (Good): 13% RC-IVA on fees net of VAT plus the 3% transactions tax. We found no rule that makes a self-employed person join the pension system; if you join, contributions start at 14.42%.

👉 APS: Supreme Decree 5280, contribution rates from November 2024 (in Spanish)

👉 Bolivia expat tax guide

Hungary: 15% tax, 18.5% social security

Hungary charges a 15% flat tax on almost all income. Employees also pay 18.5% social security on their gross pay, with no ceiling, and contributions aren't deducted before tax. So the rate on a salary is a flat 33.5% from the first forint to the last, rated Poor.

Flat-rate sole traders (átalányadó) pay about 22.8% on US$100k of revenue (Moderate), because 45% of revenue counts as costs. Hungary is also unusual in charging a 13% social contribution tax on dividends and gains, until your income for the year reaches HUF 7,747,200.

👉 NAV: social contribution tax in 2026, including the HUF 7,747,200 cap (in Hungarian)

👉 Hungary expat tax guide

Czechia: 15% and 23% tax, 11.6% for employees

Czech income tax is 15%, with 23% on tax base above CZK 1,762,812. Employees pay 7.1% social security and 4.5% health insurance, and tax is charged on the gross salary. A US$100k salary costs about 26.6% all-in, rated Moderate. The heavier load sits with the employer, which pays 24.8% social security and 9% health insurance on top.

Freelancers do much better, at about 15.4% (Good) using 60% lump-sum expenses: pension insurance is 29.2% on 55% of profit and health insurance 13.5% on 50%.

👉 Czech Social Security Administration: key social security figures for 2026 (in Czech)

👉 Czechia expat tax guide

Bulgaria: 10% tax, 13.78% contributions up to a cap

Bulgaria taxes income at a flat 10% with no tax-free allowance. Employees pay 13.78% in social security and health contributions, and tax is charged on what's left. On pay under the cap that's 22.4% all-in. But contributions stop at €2,300 a month from August 2026, so a US$100k salary costs only about 13.7%, rated Good.

Put simply, Bulgaria is a low tax, high social security country for ordinary salaries, and low on both for high ones. Employers add 18.92% to 19.62% on top. Freelancers pay about 15.1% (Good) after a 25% flat expense deduction, with 27.8% contributions up to the cap.

👉 National Social Security Institute: contribution rates for employees, 2000 to 2026 (in Bulgarian)

👉 Bulgaria expat tax guide

Serbia: 10% tax, 19.9% contributions up to a cap

Serbia taxes salaries at 10% above RSD 34,221 a month, with an annual income tax of 10% to 15% for higher earners. Employees pay 19.9% contributions, charged on a monthly base of at most RSD 732,820, five times the average salary. Without any relief, a US$100k salary costs about 27.8%.

The newly settled taxpayer relief changes the picture. If you haven't lived mostly in Serbia in the previous 24 months and take a permanent job with a Serbian employer paying more than RSD 439,692 a month in 2026, tax and contributions are charged on only 30% of your pay for five years. A US$100k salary then costs about 12.1%, rated Good. Freelancers pay about 17.8% (Good) if they pay themselves a salary; without that election, contributions of 35.05% fall on profit and the bill is about 34%.

👉 Pension and Disability Insurance Fund: contribution bases for 2026 (in Serbian)

👉 Serbia expat tax guide

Why don't Belgium and Montenegro fit the pattern?

Belgium links to this guide from its country post, but it isn't a low tax country. Federal rates reach 50%, with a communal surcharge of 0% to 9% of the tax on top. Employee social security is 13.07% with no ceiling, which is lower than in most countries above. A US$100k salary costs about 45% all-in, or about 33% under the inbound regime, and freelancers pay about 50%. The problem in Belgium is the income tax, not the contributions, so we show it in the full list for comparison only.

👉 Belgium expat tax guide

Montenegro is often named as an example, but it no longer fits. Employee pension contributions fell from 15% to 10% in October 2024, and health contributions were abolished in 2022. Employees now pay 10.5%, and a US$100k salary in Podgorica costs about 24.5% all-in (Moderate). Freelancers pay about 18% (Good).

👉 Montenegro expat tax guide

Do freelancers pay less in these countries?

Usually, yes. Many of these countries charge self-employed contributions on a fixed base or cap them, so on US$100k the share falls. Five of the nine are rated Good for freelancers, against two for employees. North Macedonia is the exception: contributions follow your net income, so freelancers pay about as much as employees.

☑️ Freelancers: self-employed contributions and all-in cost on US$100k in 2026

All 10 countries at a glance

This list covers every country whose TaxPilot guide links to this topic, with the all-in cost for employees and freelancers on US$100k and whether the low tax, high social security pattern holds.

☑️ All countries: employees and freelancers on US$100k in 2026

Belgium's employee figure counts the inbound regime; without it, the cost is about 45%. Serbia's counts the newly settled relief; without it, about 27.8%.

Traps and what to check

• Ceilings. Romania, Bosnia and Herzegovina, Hungary and Belgium charge employee contributions with no upper limit. Bulgaria, Serbia, Croatia and North Macedonia cap them, so the share falls as pay rises, but only once you pass the cap.

• Your employer's share. The figures here leave out employer contributions, which range from nothing in North Macedonia, where employees pay all contributions, and 2.25% in Romania to 24.8% social security plus 9% health in Czechia.

• Posted workers. If a foreign employer sends you, EU rules or a social security agreement may keep you in your home system for a time, for example with an A1 form. Check this before you sign, as it can remove most of the cost.

• Investment income. Hungary adds a 13% social contribution tax on dividends and gains, and Romania a capped health contribution. Bosnia and Herzegovina and Bolivia don't tax our investment example at all.

• Residence. Most of these countries treat you as resident after 183 days or if your home or centre of interests is there, and then tax your worldwide income. Bolivia taxes only Bolivian-source income.

• Proposed changes. Croatia's tax package and Hungary's wealth tax and KATA reform are Proposed, not law.

Frequently asked questions

What does low tax, high social security mean?

It describes a country with a low headline income tax rate, often a flat 10% or 15%, where compulsory social security contributions are much higher than the tax. In Romania, for example, the tax is 10% but employee contributions are 35%, so a US$100k salary costs about 41.5% all-in.

Which country has the highest social security with a 10% flat tax?

Romania. Employees pay 25% pension and 10% health contributions with no ceiling, then 10% income tax on what's left, for about 41.5% all-in on US$100k. Bosnia and Herzegovina's Federation follows, with 31% contributions and 37.7% all-in.

Is Bulgaria a low tax, high social security country?

For ordinary salaries, yes: 10% tax plus 13.78% contributions comes to 22.4% on pay under the cap. Contributions stop at €2,300 a month from August 2026, so a US$100k salary costs only about 13.7%. See the Bulgaria expat tax guide.

Do freelancers pay less than employees in these countries?

Mostly, yes. Fixed contribution bases and caps mean five of the nine countries rate Good for freelancers on US$100k. North Macedonia is the exception, at about 35% for both.

Are employer contributions included in the all-in figures?

No. The all-in figures count income tax and the contributions you pay as an employee. Employer contributions are paid on top, for example 24.8% social security and 9% health insurance in Czechia.

Is Montenegro still a low tax, high social security country?

Not any more. Employee pension contributions fell from 15% to 10% in October 2024 and health contributions were abolished in 2022, so a US$100k salary in Podgorica now costs about 24.5% all-in. See the Montenegro expat tax guide.

Can I avoid social security in these countries?

Sometimes. If your employer posts you from another EU country or a country with a social security agreement, you may stay in your home system for a time. Serbia's newly settled taxpayer relief also cuts the contribution base by 70% for five years for qualifying hires.

Where to go next

👉 Lowest-tax countries for employees

👉 Best countries for freelancers

👉 Special tax regimes for new residents

👉 Lowest-tax countries for expats: 153 ranked

👉 Best countries for entrepreneurs

👉 Romania expat tax guide

👉 Bulgaria expat tax guide

👉 North Macedonia expat tax guide