Earned income consists of salaries, wages, directors’ fees and benefits in kind. Fringe benefits, including a company car, housing and lunch vouchers, are taxed on values set forth in an official table that are lower than the actual costs incurred. Scholarships from private institutions are exempt, up to approximately €19,700 (2013 tax year).
Under a special expatriate tax regime, qualifying expatriates may elect to be taxed on their salary income at a rate of 35% for a period of up to 48 months, instead of at the normal progressive income tax rates.