Comparision of income tax rates between The Netherlands and Finland

1. Income tax rates in The Netherlands and Finland
50%
45%
40%
35%
30%
tax rate
25%
20%
15%
10%
5%
0%
income / year
NL, no mortgage NL, mortgage interest 800 eur / month
Finland, no mortgage Finland, mortgage interest 600 eur / month
•Tax rate is a rate paid from the total income thus not marginal tax rate that is over 50% in both countries from higher incomes
•120 eur per month for health insurance included to the NL tax rate, in Finland it is included to the income tax
•Mortgage interest is estimated based on the 250.000 eur loan with 4% interest rate. In NL a mortgage can stay at maximum
(going to change 2013) and a whole loan can be deducted from the taxable income. In Finland the mortgage needs to be paid
back (e.g. in case of the 20 years loan, the monthly interest would be only 600 eur after 5 years) and only part of the interest can
be deducted from the taxable income
(C) Veli-Pekka Kröger

2. Expat tax benefit in The Netherlands
50%
45%
40%
35%
30%
tax rate
25%
20%
15%
10%
5%
0%
income / year
NL, no mortgage
NL, mortgage interest 800 eur / month
NL, 30% tax rule, no mortgage
NL, 30% tax rule, mortgage interest 800 eur / month
•NL offers tax benefit (30% ruling) to foreign people if they are recruited from abroad
•The minimum income for tax benefit is 50.000 euro / year so the tax rates below that are not realistic
•More information about 30% ruling can be found e.g. here http://www.expatax.nl/30ruling.php
(C) Veli-Pekka Kröger