Reason: Extremely inefficient government + too many inactive people = 54% of GDP goes to the government. About 40% of Belgians work to pay the 60% who do not work. The tax base is low > higher. Patrick Derthoo, a tax expert at Deloitte in Brussels, Belgium, said income taxes in the country are unusually high, but things are starting to change. Another point to consider when considering the cost of living in Belgium is the benefits that Belgians receive from their government. The average income tax rate in Belgium is 42%, which is the highest tax rate in the world. Belgium remains one of the most taxed countries in Europe, with single citizens without children paying the highest tax bills, according to the latest OECD study. Tax rates in Belgium are among the highest in Europe. Belgian tax rates are effective at more than 50% for high incomes (after taking into account social security), compared to an average of 45% in the rest of Europe. OECD data show that married workers with children tend to have a lower tax burden, while lone parents often benefit from even better tax breaks. And people who earn above-average salaries tend to pay more income taxes. Although Belgian salaries are high, Belgium is also the third most fiscal country in the EU after France and Austria. On average, Belgians spend around 40% of their income on taxes.
Single people in Belgium without children earning a higher salary (167% of the median) see that 59% of their salary is used for taxes, a rate that drops to 46% for those earning 67% of the median. Although this high tax rate seems like a drawback, the Belgian government uses the money to fund its exceptional social programs. Because of these social programs, the unemployment rate may be 8.4%, but only 3.4% of the country falls into the bottom 10% of income. This statistic is a sign of significant social progress. “Today, wages are stagnating and despite indexation, the tax rate on wages is very high. For this reason, some governments have taken the political decision in recent years to reduce payroll taxes. It is good news that wage taxation in Europe is falling because wages are rising less than with other forms of income. Although couples with children are taxed at a lower rate, at 45.2%, it is still higher than the European average (for OECD countries). Single parents with two children, even if they earn only two-thirds of the median wage, are still taxed at 29.35% – the second highest rate for this category after Sweden (32.4%). , but I`m really curious now as to why Belgium is supposed to have the highest (or second highest?) While the cost of living may be higher overall in Belgium, it is lower in all good areas.
For example, the cost of food in Belgium is on average 4.82% lower than in other countries, and renting an apartment is 21.25% cheaper. This means that low-income people in Belgium have a better chance of keeping food on the table and more long-term housing options. Data from the Organisation for Economic Co-operation and Development show that Belgium has the highest income taxes in the developed world. The effective tax rate in Belgium is generally considered to be one of the highest in the world; See the list of countries by tax rate. I think it`s because people who don`t agree with high taxes are simply leaving the country. It is the Schmuks like us who are stuck in de vlaamse klei. Although the cost of living in Belgium is high and income taxes account for almost half of every worker`s earned income, the government provides safety nets that bring benefits that far outweigh the costs. Ultimately, the low cost of healthy food, the increase in available housing, and government support programs make Belgium a great place to live, even though the cost of living in the country is high. However, Belgium has a disadvantage. That`s an incredibly high cost of living.
In fact, the cost of living in Belgium is 9.7% higher than in the United States, where the median income is $53,046. Belgian tax rates are among the highest in the world, as the Belgian government uses tax revenues to fund its top-notch healthcare, affordable education, and social security programs such as family, retirement or unemployment benefits. You can prove that you are a non-resident taxpayer in Belgium by proving: Professional income is also subject to social security contributions. Employee contributions amount to 13.07% and are deducted by the employer. In addition, the employer contributes approximately 35% to the employee`s salary.  Maximum contributions apply to both employees and employers.  As an owner, you must pay an annual property tax on the assumed rental value (cadastral income) of your property, which is determined by the Federal Public Service Finance. You can request the calculation of your cadastral income on MinFin. This guide to taxation in Belgium gives an overview of the following: “Labour taxation was introduced in the 1960s when there was full employment: wages were rising more and more, so the government was taxing more. People didn`t know how much taxes were rising,” Traversa said. OECD data shows that in 2015, the average American worker earned 74.4% of their gross salary after income tax and Social Security. In comparison, Canadians earned 76.6% of their gross salary, Mexicans just under 90%.
I have cancer (don`t worry, it`s going very well :), I`ve been in the hospital for all sorts of things, from surgery, scans, chemo, emergency fever,. There is much to complain about in Belgium, but health care and related finances are not one of them. And we still lack politicians who really want to do something about it: “If you don`t get a special program or special deductions, you`ll be heavily taxed.” Dependents, whether they are children or elderly parents, can reduce the tax burden. “Several options are on the table to correct the balance, such as an increase in consumption taxes, wealth taxes or corporate taxes. But all this will depend on the political decisions that may or may not be taken in the future. The only reason Belgium works one way or another is because we are so rich that we are able to spend too much to compensate for years of incompetence. For example, the Belgian monthly minimum wage of €1,842.28 would be around €1,457 after tax. You can calculate a rough estimate of your take-home pay online. Your employer automatically deducts taxes from your salary each month. Belgium is a small and beautiful country known as the center of European politics. Brussels, the capital of Belgium, is home to the official headquarters of the European Council, the Council of the European Union, the European Commission and even the headquarters of NATO. In addition to the country`s international importance, Belgium has a reputation as a great place to live, with a booming economy and access to many social programs.