We're comparing taxation, retirement, and social rights for long-term immigrants in Indonesia and the Netherlands. Indonesia's tax system for expats is based on worldwide income.
That means if you're a resident, your global earnings are taxable. There are thresholds and deductions, but it's crucial to understand this upfront.
So, even income from online sales is taxable?
Yes. Expect significant paperwork. Regarding retirement, Indonesia's social security (BPJS Ketenagakerjaan) accessibility for expats depends on work permits and employment type. It's not guaranteed.
In contrast, the Netherlands offers a more structured system. Legal residents automatically qualify for social security.
This includes health insurance, unemployment benefits, and a pension. The Dutch tax system is efficient, though higher than in Indonesia. However, the robust social safety net compensates. There's also the 30% ruling for highly skilled migrants, offering a significant tax break for the first five years.
The 30% ruling is a tax-free portion of salary?
Essentially, yes. It's designed to attract skilled workers. Long-term, however, Dutch taxes are substantial.
So, Indonesia might have lower taxes initially, but social security is less certain. The Netherlands has higher taxes but a stronger safety net. What about property taxes?
Indonesian property taxes are relatively low, but navigating land rights can be complex for foreigners. In the Netherlands, property taxes ("onroerendezaakbelasting") are higher but predictable and transparent.
So, a potentially simpler tax system in Indonesia, but a more secure social safety net in the Netherlands.
Precisely. Thorough research is essential before making a decision.