Income tax + business tax pile up to 50% already. I don't pay social taxes by choice, hence I do not benefit from the social net. If I add up all other taxes then, I end up pretty close at 70%. Meaning mostly VAT, taxes on gas and oil, alcohol, tobacco, final withholding tax on stock and crypto investments and speculation, vehicle tax, electricity tax. All in all there are close to 40 different types of tax, but we don't have to pay all of them. But being in the highest income tax band as a tech freelancer with virtually no deductible costs you pay taxes first, and then have to take care about health care, insurances and pension afterwards. Even if you make some good money, that does not leave you with a lot to live. At least that's our scenario for many years now.
How does that work? I mean the tax rate is progressive and as a freelancer you only pay the normal income tax. If the tax authority insists you're a Gewerbe you'll have to pay Gewerbesteuer as well, but most of that can be deduced from your income tax already. Just wondering how you get at this number, calculating with 240 T€ and tax class 1 I only arrive around 40 % income tax.
bartminton|3 years ago
darrrwin|3 years ago
To compare cost of living: https://www.numbeo.com/cost-of-living/comparison.jsp
Safety comparison: https://www.numbeo.com/crime/rankings_by_country.jsp?title=2...
ThePhysicist|3 years ago
jobegrabber|3 years ago
Is that for all your income or "just" over a certain threshold?
>Even if you make some good money, that does not leave you with a lot to live.
You said you travelled to different countries in Europe, Africa and Asia. Do you consider that not leaving you with a lot to live?
>with virtually no deductible costs you pay taxes first, and then have to take care about health care, insurances and pension afterwards
Those are all, up to a certain degree, deductible from your taxes, right?