World's highest taxes paid in Denmark

The latest figures from the European Commission and Eurostat show Danes to be the most taxed people in the world, according to Danish media.

With an overall tax burden of 48.7 percent in 2007, even Sweden was relegated to second place with a tax burden of 48.3 percent. Since EU countries generally pay more taxes than other countries around the globe, Denmark is thus the unofficial world champion.

The average tax burden in the European Union is at under 40 percent, and Denmark also has by far the highest maximum tax rate at 59 percent.

The country’s No. 1 spot is primarily the result of high taxes on consumption and capital.

But Denmark does not take first position in all types of tax. Eight EU countries have higher taxes on labour. Denmark is also a mere mid-field player in company taxes, although its 25 percent is way above those countries offering the lowest company taxes. Cyprus and Bulgaria demand 10 percent in company tax, while Ireland requires 12.5 percent.