Wel we have eternal unemployment benefits, more pension benefits for those who barely or didnt work, health care costs overal are the same but belgium seems to be more efficient in those then canada that has less care and more wait tims it seems. The difference in taxation is a staggering 15%, or about 9,000 Euros based on the above mentioned salary! Taxes are collected on both state and local level. This statistic shows the personal income tax rates in the Benelux region (which consists of Belgium, Luxembourg and the Netherlands) as of November 2019. If so, how do I exercise them? In hosptals you also don't have to pay anything at your appointment, your bill comes later but with the standard insurance already deducted automatically. As an individual, small and medium-sized enterprise or large firm, you are liable to pay tax in Belgium. That's why someone earning a mere 25k is already in the 50%+ tax levy (if you incl social security), or why the highest bracket starts at a mere 40k gross. In autumn 2000 the Belgian government approved a comprehensive personal income tax reform which is being phased in progressively between 2002 and 2005. I haven't visited a doctor yet but I heard that in Belgium, you pay for medical care up front and then you will eventually be reimbursed for only 70%? We escaped! I'm actually trying to figure out what the effects of increased taxes in Canada might be....but in order to do that, i'd like to do a sort of case study. Among the EU-28, Belgium is behind Austria (July 18th, unchanged from 2017), and France (July 27th, gaining two freedom days). And regardless of your earned income (or possible distaste for the Belgian tax system), we must complete and submit it by June 26, 2014 at the latest. I live in Holland and work in Belgium. By Gavin Lee BBC News, Brussels. The 50% in Belgium starts from 37k while the 50% bracket in Netherlands starts from 67k!! Belgium believes its high Covid-19 mortality rate is down to more rigorous counting of cases. Belgium has a progressive tax system. Average tuition fee for a 4 year degree in Canada is $28K (almost $30 billion in debt), average in Belgium is $4K. There are a number of taxes related to residential properties in Belgium, including VAT, cadastral income, and local taxes related to inhabiting the home, that will depend on the region, province or district of the property. The goals of what to do with those funds is ok, but they're used relatively inefficiently in a structural manner. All these things cost money. The tax system in Belgium Tax rates in Belgium are some of the highest in Europe. The average income tax rate in Belgium is 42%, which is the highest tax rate in the world. Alternatively, I am also considering looking for work in the Netherlands or the United Kingdom, but I am now genuinely curious about why Belgium supposedly has the highest (or second highest?) The only reason Belgium somewhat works is because we are so wealthy that we are able to overspend to make up for years of incompetence. Judging Dutch beer by Heineken alone is like claiming Stella is the best Belgian beer. There are pretty big differences within Flanders too. (20 hour contracts or bust). SIX. Did you get these numbers from somewhere? The Belgian tax year is the same as the US, which is to say the calendar year. Every tiny village here has a major, a council and a whole lot of people working for them. Also, I believe the standard VAT here (21%?) wow, i like your arguments! Are there any tax breaks associated with being an expat? But in your position I wouldn't ask why, simply because any answer will add more doubt ( variables ) than certainty to your question. He is an expat from another part of Europe and he was also very surprised at the high income taxes. You get more back than 70% at the doctor. We pay a lot less taxes on cars. Income tax Income tax must be paid by all people who have settled in Belgium or made it their centre of financial interest, regardless of their nationality. No, there are no extra benefits. We do not get what we pay for. In Canada, you just show up for your appointment, consultation, x-ray or surgery and leave without paying anything. Most Canadian students have substantial debt but almost no Belgian student gruaduates with debt. I think it's because people who disagree with the high taxation just leave the country. Which taxes and withholding taxes are we in charge of? Romania and Bulgaria collect 27,1% and 29,9%, respectively. Belgium is a organized in regions and provinces, which means that tax rates may differ from one province to another. The 50% in Belgium starts from 37k while the 50% bracket in Netherlands starts from 67k!! If you live in NL you live a different life style to the one you have in BE. Bulgaria is particularly attractive for entrepreneurs as the Balkan country has flat personal and corporate tax rates of just 10%. I'll give you your answer in one word: bloat. Healthcare but especially education is much more cheaper (aka more taxes) in Belgium. The tax authorities calculate the amount of tax payable based on the annual income tax declaration. In Belgium, taxes are collected on both state and local level.The most important taxes are collected on federal level, these taxes include an income tax, social security, corporate taxes and value added tax.At the local level, property taxes as well as communal taxes are collected. High expenses and no ability to have upper classes pay their share means extreme middle class tax rates as they're less mobile and more easily extortes. , but I am now genuinely curious about why Belgium supposedly has the highest (or second highest?) Appointed civil servants are usually a bit more lax than the non-appointed ones, yet when it comes time to cut some more personell, it's only the non-appointed ones that can be fired or put on a type of contract that leaves them with little wage and small pension rights. I have the same feeling but would like to see the comparison in depth. each year and we experienced a lot of financial insecurity. Don't forget that Brussels is the de facto capital of Europe which brings quite some economic activity this way that otherwise wouldn't be here. For more information on personal income tax and income tax for the self-employed, look in the ‘Taxes’ section of the portal. The tax base is low -> higher taxes. So let's not pretend that Belgium doesn't enjoy any free lunches. You can't work your way up here. surely it isn't just to build bridges and roads and other … So you get the best of both world, lower income tax (NL), cheaper healthcare (BE), cheaper houses (NL) and better/cheaper education for your children (BE), the only real downside you have is the higher taxes on cars. For residents or companies operating in Belgium, the taxes vary in accordance to monthly salary, properties, capital gain, type of company and other factors. Not yet, but give it 10-15 years and parties like OVLD and NVA will be telling you that it's fair to pay a year's wages for a year of higher education just like across the pond. All Belgian workers pay into the social security scheme in Belgium at tax rates between 0.05% and 13.07%. However, I recently had an interesting conversation with my classmate's friend and found that his average income tax rate is about 42% based on his salary of about 60,000 Euros per year (I think he makes a bit more than that). So income tax seems ridiculously high in Belgium. Published 2 May 2020. Vastly underrated. We have too many governments, in a needlessly redundant fashion, and each and every one of them step waay too much outside of their boundaries. Consider other countries first, especially if you plan to work in IT, finance or engineering. Benefits for pensioners and the unemployed are good, if you find yourself without a job one day, you won't be living a luxurious lifestyle but you won't starve. For the rest belgium has an inefficient government and a complicated system that swallows up a lot of the budget. It's a racket that makes any mobility of wealth a pipe dream. 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