Top 10 Highest Taxed Countries in the World 2021

There are different countries in the world and the rules and regulations of each country are different. Today’s post will discuss the highest taxed countries in the world. If you need to know the answer to this question, read carefully all the points discussed below.

This website also gives you answers to various questions such as which countries are tax free etc. If you like this type of post then this website is for you. Stay tuned to this website.

Do you want to know the highest taxed countries in the world?

10. Croatia

Taxes are high in Croatia if you’re a foreigner living in the country and receive most of your income from within Croatia you will also pay taxes Croatians are taxed on their worldwide income with the highest tax charged is 30% nationally the country derives most of its revenue from taxes social security contributions vat and corporate tax.

the government can also collect up to 18 surtaxes as recently reported by totalcroatiannews.com Croatia has lowered its tax rates as they explain Croatia has lowered its income tax rate and there are hopes that the move might attract a few Croatian immigrants home from Ireland hopefully the news will be good for the country as each year immigration and demographic trends bring worse news for Croatia.

9. Finland

Finnish citizens have made headlines recently because of their exorbitant taxes on cars according to the Helsinki times drivers pay car tax vehicle tax fuel tax propulsion tax and even insurance premium tax for traffic insurance is a compulsory purchase for car owners.

on top of all this there’s a value-added tax on cars and fuel right so if you thought that was excessive their general taxes are rather high as well they have progressive tax but theirs tops out at 31.25 percent added to that is social insurance contributions and a public broadcasting tax Finland’s tax administration has recently ruled that

they’ll provide the media with a list of the highest income fins tax data if a citizen doesn’t want their name and tax information on the list their name is still being made public. 

8. Ireland

when the Irish times reported that when asking ex-pats if they’d ever returned to Ireland their stock answer was we would if it weren’t for the weather and taxes in Ireland they work on a pay as you earn system or payee there are two rates on which tax liability is calculated.

the standard rate at 20 which applies if you’re earning less than 35,300 euro a year and anything over that yearly figure is taxed at forty percent so if you earned forty-five thousand three hundred euro a year you’d be taxed twenty percent on the thirty-five thousand three hundred and then forty percent on the remaining ten thousand,

 as the Irish times brought forward earning just over the minimum threshold is still a low salary and then to be hit with 40 tax on that is not ideal and general director of tax policy at it added the higher tax rate kicks in much quicker at an earlier stage at a more modest salary.

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7. Australia

Covet has had a crippling effect on millions of people globally yet billionaires around the world have managed to cash in on the crisis in Australia the wealth of billionaires rose substantially between December 2019 and December 2020 housing has reached record levels and stock markets are reaching new heights,

which means the wealthy keep getting wealthier Australia relies heavily on direct income taxation there they have a sliding scale of tax the lowest being 19 cents for every one dollar over eighteen thousand two hundred dollars earned and the highest being fifty-one thousand six hundred and sixty-seven dollars plus forty-five cents for each one dollar over 180 thousand dollars.

6. Germany

Germany also has a progressive tax this means the more a person earns the more tax they will pay the tax caps out at 45 percent there’s a small savers allowance of 801 euro than a 25 withholding tax on interest and dividends and a 15 withholding tax on royalties anyone in the following industries is taxed own a business self-employed employed by someone else agriculture forestry any savings or investments income from rental property and capital gains some germans are taxed between eight and nine percent depending on what church they belong to although everyone pays a church tax they can choose to give it to a church or to the state anyone earning 9408 euro or below does not pay taxes.

5 The Netherlands

the dutch are taxed on the following salaries wages benefits and kind pensions and property income from business holdings and savings and investments each category has its own tax rate xpatica.com highlights that higher earners can expect substantial taxation on their salary high earners pay up to 49.5 in taxes which is where it’s capped.

here’s the breakdown of taxes in each category earnings up to sixty-eight thousand five hundred and seven euro are taxed at thirty-seven point one percent anything over that is at forty-nine points five percent they do have a tax credit of 2,837 euro substantial interest has a 25 tax imposed on it,

and lastly savings and investments have a maximum tax rate of 31 percent over and above national taxes all citizens pay local taxes which include the following property tax waste collection charges street cleaning maintenance tourist tax sewage rate and a movable property tax for houseboats and portable.

4. Belgium

tax rates in Belgium are among the highest in Europe and have a top progressive rate of 50 percent any income derived is taxably included in that tax figure is the social security tax of 13.07  of their income.

other taxes include property tax gift tax and inheritance tax due to taxes being so high Belgium has more than 90 agreements in place with other countries to prevent ex-pats from having to pay even more taxes in their home country they’ve also been upping their game in eradicating tax avoidance and in 2019 managed to recoup 400  million euro in unpaid tax.

3. Slovenia

income tax in Slovenia ranges from 16 to 50 percent residents get taxed on their worldwide income while ex-pats get taxed on the income they source solely from Slovenia here there are six areas that get taxed including employment business agriculture and forestry rent and royalties dividends interest and capital gains and other.

taxes go from 16 for lower-income earners right up to 50 for higher-income earners just recently published on total Slovenian news.com it was mentioned that Slovenia would lower the tampon tax from 22 percent to 9.5 percent.

2. Denmark

this is one of the few countries where citizens are happy to pay their high taxes that should come as little surprise as they’re always in the top 5 happiest countries in the world so why are the danish so happy to pay their high taxes and why don’t the rich complain well according to usnews.com people in the European country see taxes as an investment in their quality of life.

in a country where happiness is how progress is measured it’s important for the government to reduce risks and insecurities in people’s lives, the average Dane pays around 45 tax Danes pay national income tax municipal tax regional tax labor market tax, and church tax.

according to Investopedia Denmark’s progressive income tax tops out at 55.9 percent if you’re keen to spend a few nights in one of the happiest countries in the world be sure to have a look into some of the most surreal accommodation options for Denmark on Airbnb we always use Airbnb in our travels.

Also Read: Top 15+ Easiest Ways to Make Money

1. Sweden

Sweden where tax tops out at 60.1 percent as reported by the guardian swedes personal income tax can be as little as 29 of their pay but most people anyone earning over 32 000 pounds will pay between 49 and 60 through a combination of local government and state income tax.

when speaking to locals the guardian affirms how residents are happy to pay the high taxes they quoted several taxpayers who said things like most people trust the state to manage tax as well there’s a board deep faith that money going into the welfare state will be employed usefully.

I’m very happy to pay high taxes because I know how I’m getting value for the money later on income above 675,700 kroner gets taxed at 60.1 percent the beauty about the income tax in Sweden is that education is free and there are many other factors that also add value into their tax system.

Highest taxed countries in the world The answer to this question has been explained to you by these 15 points. Hopefully, you have understood. There is also a bonus point for you to read.

Bonus

 if paying exorbitant taxes is not for you then here are four countries where there’s no income tax at all to suggest the united Arab emirates is one of them they have no income tax making it an extremely attractive option for many.

the Bahamas where there are no taxes on income gifts inheritance or capital gains you could opt for Bermuda but it’s quite expensive to live there and you’d be rather isolated and one of our faves is Monaco like Bermuda it’s one of the most expensive places to live in the world, and if you’d like access to this tax-free haven you’ll need to have at least half a million dollars in a Monaco bank.

Highest taxed countries in the world. You must have got the answer to this question. If you have difficulty understanding any point, please let us know in the comment box. I will try to write in a simpler language. Also, be sure to let us know in the comment box if you have any questions.

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