Comparing Income Tax in Ireland to Holland

Hi there,

I'm not much of an expert on Tax and I have a couple of questions. I've been offered a job in Amsterdam. Doing a comparation of the amount of Tax I would pay in Holland as compared to Ireland. My calculation of Holland is:

The tax rate is a rising scale with four brackets. The rates are (2001):

32.35% on the first NLG 32,769 (EUR 14,870)

37.60% on the next NLG 26,751 (EUR 12,139)

42% on the next NLG 42,532 (EUR 19,300)

52% on the remainder

Gross 72000
Tax 30840.02
Net 41159.97

So from my calculation I would have a net income of 41160 on 72000 income.

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In Ireland I calculated paying € 20080.0 based on current tax bands and subtracting 3120 Tax Credits.

Quite a difference. Could anyone tell me if my calculations are correct for Holland and Ireland?

Any help would be much appreciated!

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If this makes any difference, I would be employed as a contractor paid at a rate of Eur 600 per day.

cousin_borat said:

In Ireland I calculated paying € 20080.0 based on current tax bands and subtracting 3120 Tax Credits.

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Try [broken link removed]. There are others out there too. Links have been posted here on AAM in the past. Can't help with the Dutch tax issues though I'm afraid. Do the Dutch not have tax credits and/or allowances in addition to their tax rate bands? In both cases don't forget mandatory national/social insurance deductions (e.g. PRSI and health levy in Ireland).

Why are you still quoting Guilders and converting to €?!?

The tax rates quoted are from 2001, hence the guilders. I'd certainly try to do this calculation using current tax rates.

Check out [broken link removed] site.

PwC has just announced that it has made its Worldwide Tax Summaries available [broken link removed]

Brendan

Thanks for the replies lads. The link to PWC calculator on the sticky was broken but found another Irish one.


Thanks for the expat tax link, didn't find anything as useful whilst searching.

Another option I was considering proposing to employer was paying to a company. I was looking at registering a company through http://www.cro.ie/. Should'nt have to worry about VAT for about a year.

You might find that you still have a higher standard of living on your taxed income in the Netherlands. The health care system is brilliant, the public transport is highly efficient and heavily subsidised Prices are very reasonable.
The Dutch high taxes are well spent in my opinion.

cousin_borat said:

Thanks for the replies lads. The link to PWC calculator on the sticky was broken but found another Irish one.

Click to expand...

Which link? I can't see any broken links here.

cousin_borat said:

Another option I was considering proposing to employer was paying to a company. I was looking at registering a company through http://www.cro.ie/. Should'nt have to worry about VAT for about a year.

Click to expand...

Just because a company is registered in Ireland does not mean that it will only be liable to tax in Ireland, the Dutch may see it as having a branch over there which depending on their rules may be taxable. Similarily paying an employee (you) who is permanently resident in Holland through the Irish PAYE system might not be correct. You really should take tax advice before trying anything like that.

Be aware that you can qualify for the 30% rule in holland as a foreigner.. this means that the first 30% of your income is tax free.. then the tax brackets start to kick in.

All you have to do is apply for it with the help of the company you will be working for and you will get it.

Dutch law is funny towards contractors though. They prefer contractors to go thru a recognised agency and pay tax thru them - this means you end up as a PAYE but the tax breaks are still amazing. I tried to get a way around the rule (contact any BDO over there for very good tax advice) but got no good of it.


I lived in holland for years... you get a lot more for your money. That 600 is worth a lot more than it is here.

I read about the 30% rule on expat site that was linkeyed in this thread by extopia. I went through a recruiting agency so I'll bring that up with them.

: edit Since earning under 250,000 am qualified for the expat 30% according to recruitment agency.

Sorry ClubMan, can't find it now. I was tired so may have been incorrect when I said was the sticky