Ireland has the sixth-highest tax burden in the world for top earners, a new study has found. Only Belgium, Denmark, France, Croatia and the Netherlands have larger tax bills for high earners than Ireland, according to a study by accountants UHY Farrelly Dawe White.
The report found that high earners in Ireland take home just 49pc of their pay after tax, compared to 54pc in Britain and 57pc in the US.
"That is a substantial difference that could create a long-term challenge for our economic competitiveness," said Alan Farrelly, managing director of the Louth firm.
"Ireland is an incredibly attractive location for inward investment with a highly-skilled labour force, but if our tax burden is too high, we may put off inward investment," he added.
Three of the best places to live if you earn a lot of money are Dubai, Russia and Slovakia, according to the study. Top earners take home 100pc of their pay in Dubai, 87pc of their pay in Russia and about 75pc of their pay in Slovakia.
"The gap between how heavily you are taxed in Western Europe compared to other developed economies is striking, especially at the €200,000 level," said Ladislav Hornan, chairman of UHY.
"That's a typical income for a successful engineer, marketeer or head of IT. As the global economy improves and new job opportunities open up, Western European governments need to be aware of the risk of a brain drain of skilled professionals."
The study also found that Ireland has the third-lowest tax burden for low earners.
Sunday Indo Business