3 Countries, 1 common problem
Hey Future Millionaire,
This week, I presented to 90 people from Ireland, the Netherlands, and Belgium. Three different countries - but one common challenge: tax is their biggest expense.
Lifetime cost of taxes
According to estimates:
Ireland: €450,000
Netherlands: €680,000
Belgium: €600,000
These figures are based on average incomes - tech employees will pay far more. And this doesn't even include wealth tax, dividend tax, exit tax, or capital gains tax (CGT).
If you're serious about financial freedom, reducing your tax bill is a must.
Tax saving strategies by countries
Below are some interesting tax saving strategies I found in my research. There are more but these have a big impact.
Ireland
Pension Tax Relief: Contributions can save you 40% tax, grow tax-free, and allow a tax-free lump sum withdrawal of up to 25% from age 50.
Tax Credits & Reliefs: Claim available reliefs on medical expenses, rent, tuition fees, and more.
CGT Exemption: Ireland’s 33% CGT applies to gains from asset sales, but the first €1,270 per year is tax-free.
Netherlands
Wealth Tax (Box 3) Allowance: No CGT, but a wealth tax applies. Ensure you use the €57,000 tax-free allowance (€114,000 for couples). Even higher allowances exist for green investments.
Tax-Deferred Pension Contributions: Similar to Ireland but locked until retirement.
Mortgage Interest Deduction: Homeowners can still deduct mortgage interest to lower their tax bill.
Belgium
No CGT or Wealth Tax: Long-term investing is highly attractive here.
Avoid Dividend Tax: There’s a 30% tax on dividends and bond income, so accumulating funds (which reinvest dividends) may be a smarter choice.
Stock Options & Profit-Sharing Plans: Employees can leverage tax-favored stock and bonus schemes to optimize compensation.
Take control of your taxes
Your tax bill will be your biggest lifetime expense - so you owe it to yourself and your family to legally minimise it.
While tax rules vary by country, smart planning makes a huge difference. A great tax advisor can be a worthwhile investment.
(I’m not one, but I can help you build your financial freedom plan.)
Want to take your next step?
I’ll be opening up more Money Mastery call slots for my waitlist this week.
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To your financial freedom,
Sjoerd
