The fiscal effects of intra-EEA migration

March 22, 2018

Working Paper

This working paper from work package 4 is the first large cross-country estimation of the fiscal effects of migration of EU citizens within the EEA (European Economic Area).

The vast majority of EEA countries – 21 out of 29 – saw positive net fiscal impacts during 2004-2015, receiving more in taxes and other contributions from EU migrants than they then spent in services (such as education, healthcare, infrastructure costs, welfare benefits and other costs) that were provided to EU migrants. In almost all countries – whether the net fiscal impact was positive or negative – it represented a relatively small fraction of GDP – less than +/-0.4% in 24 out of 29 cases.

Switzerland, Cyprus, Norway and Belgium experienced the greatest net fiscal benefits, while Slovakia, Poland and Estonia experienced the greatest net fiscal cost of EU immigration. In all, more than two thirds of EEA countries saw net fiscal gains from EU immigration.

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