Germany
EuropeNetherlands
EuropeGermany vs Netherlands Tax Comparison
Summary
4
🇩🇪 Germany
0
Ties
3
🇳🇱 Netherlands
🇩🇪 Germany has lower tax rates in more categories
Tax Rates Comparison
| Category | 🇩🇪Germany | 🇳🇱Netherlands |
|---|---|---|
| Top Income Tax Rate | 45%Lower | 49.5% |
| Corporate Tax Rate | 30% | 25.8%Lower |
| VAT / Sales Tax | 19%Lower | 21% |
| Capital Gains Tax | 26.375%Lower | 33% |
| Employee Social Security | 20.3%Lower | 27.65% |
| Employer Social Security | 20.8% | 18.15%Lower |
| Self-Employed Social Security | 40% | 27.65%Lower |
Living Indicators
| Category | 🇩🇪Germany | 🇳🇱Netherlands |
|---|---|---|
| Cost of Living Index | 65Lower | 73 |
| Quality of Life Index | 76Lower | 78 |
| Tax Treaties | 96Lower | 100 |
Income Tax Brackets
Germany
Progressive formula between brackets. Plus solidarity surcharge of 5.5% on tax amount (only for high earners).
Netherlands
Two-bracket system. Box 2 (substantial interest) at 24.5% up to 67k, 33% above.
Special Tax Regimes
Germany
No special tax regimes available.
Netherlands
30% Ruling
Tax-free allowance of 30% of gross salary for first 5 years (capped at max 27% of salary from 2024).
Innovation Box
Effective 9% tax rate on profits from qualifying innovative activities.
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Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.
Data last updated: Germany (2024-01) · Netherlands (2024-01)