If you are reading this, chances are you are exploring veritable migration pathways. Quite often decisions on migration examine quality of life without recourse to the cost implications.
By cost implications, we do not simply allude to the cost of migration but the opportunity cost in terms of your net income in the new country against that of your home country.
Often the differential is based on INCOME TAXES. Taxes, being the second certainty in life besides death, is a crucial parameter to Guage your potential net income and savings in your dream country.
Income tax simply implies the PERCENTAGE OF YOUR INCOME that is paid to the government. Meaning, for an income tax rate of 50% on a $20,000 annual salary, you will pay $10,000 and keep $10,000.
Different countries have different tax systems and tax rates. Of the nearly 200 countries in the world, income taxes vary from as high as 60% to as low as 0%.
Besides income taxes, there are other forms including sales tax, corporate tax, property tax, inheritance and estate taxes, excise tax, and more.
Many western countries have progressive income tax rates, meaning the higher you earn, the higher your tax rate.
For the sake of simplicity, we will list the 25 countries with highest income tax rates globally.
1. Ivory Coast 60.00%
2. Finland 56.00%
3. Denmark 55.00%
3. Austria 55.00%
3. Japan 55.00%
6.Aruba 52.00%
6. Sweden. 52.00%
8. Slovenia 50.00%
8. Israel 50.00%
8. Belgium 50.00%
11. Netherlands 49.00%
12. Ireland 48.00%
12. Portugal 48.00%
14. Spain 47.00%
15. Iceland 46.00%
16. Luxembourg 45.00%
16. Australia. 45.00%
16. South Korea 45.00%
16. South Africa 45.00%
16. France 45.00%
16. United Kingdom 45.00%
16. Germany 45.00%
16. China 45.00%
24. Greece 44.00%
25. Italy 43.00%
USA has an income tax of 37%
Canada has an income tax of 33%
Nigeria has an income tax of 24%.
The following countries DO NOT charge Income Taxes: Bermuda, Cayman Islands, Bahamas, Brunei, Bahrain, Qatar, Kuwait, Oman, United Arab Emirates, Saudi Arabia.
