>As a contractor you can earn near 20k per month pre-tax (around 7k per month post-tax).
Does that mean that taxes are (20 - 7) / 20 * 100 = 65% in NL?
I knew that taxes in some EU countries (west, north) were high, but didn't know it was that high in NL. (I am aware that you get many benefits in return for the high taxes, but thought it was in the range of 40 to 50%, in some of those countries - per what I read.)
First of you have 21% VAT. You have to put this on your customers’s invoices and then transfer the tax directly to the tax office. From whats left, we have an income tax bracket system. From 67k you pay 52%. So in this case the total tax rate is roughly 40% because a big portion of your income is in the 52% bracket.
It’s a lot but life is good here. Wouldn’t trade it for anything else.
Does that mean that taxes are (20 - 7) / 20 * 100 = 65% in NL?
I knew that taxes in some EU countries (west, north) were high, but didn't know it was that high in NL. (I am aware that you get many benefits in return for the high taxes, but thought it was in the range of 40 to 50%, in some of those countries - per what I read.)