WhereTo.Work

Tax Regime Analysis:

• Telecka uses Serbia's standard employee tax: flat 10% income tax plus 20% social security.
• Milan applies Italy's progressive income tax brackets (converted to USD) and employee INPS contribution of 9.19%.

Tax Parameters:

• Serbia: single 10% bracket, no allowance, social security 20% of gross.
• Italy: four brackets (23%, 25%, 35%, 43%) with caps converted to USD; social security 9.19% up to $115,592.

Cost-of-Living Data:

• Telecka: $300 rent, $8 meal, $2 coffee, $799 iPhone (local market prices).
• Milan: $1,500 rent, $30 meal, $4 coffee, $799 iPhone (average city‑center prices).

Net Salary Calculations:

Serbia: $60,000

$6,000 (tax) – $12,000 (SS) = $42,000 net.

• Italy: Income tax $17,990 + SS $5,514 = $23,504 total; net $36,496.

Purchasing‑Power Comparison:

• Annual living cost Serbia: $4,519; net after cost $37,481.
• Annual living cost Milan: $19,207; net after cost $17,289.
• PPP multiplier = 17,289 / 37,481 ≈ 0.46.

Comparison Conclusion:

• Serbia scores 85/100 vs Italy 55/100; Serbia offers substantially higher disposable income.

Confidence and Caveats:

• High confidence in Italian brackets (official source).
• Medium confidence for Serbian figures (simplified model).
• Exchange‑rate assumption may affect Italy calculations.
• Regional taxes in Italy omitted, which could lower net further.