Let's discuss taxation, retirement, and social rights for long-term immigrants in Israel and the Netherlands. It's crucial for anyone planning a long-term stay.
Indeed. Navigating these distinct systems requires attention. In Israel, long-term immigrants, or "Olim Hadashim," benefit from a ten-year tax exemption on foreign-sourced income.
A ten-year exemption is a significant incentive. However, the 17% VAT applies to all purchases.
Correct. In the Netherlands, the "30% ruling" allows qualifying highly skilled migrants a 30% tax-free portion of their gross salary for up to five years. Their VAT is 21%.
So, the Netherlands offers a shorter-term, but still substantial, tax benefit. Regarding retirement, Israel's system combines mandatory contributions to private pension funds with a basic old-age pension from the National Insurance Institute ("Bituach Leumi").
A two-tiered approach. The Netherlands uses a three-pillar system: AOW (state pension), occupational pensions, and private savings. They strongly encourage personal savings.
Both countries offer universal healthcare. In Israel, it's through "Kupat Holim," funded by national insurance. The Netherlands mandates private health insurance, overseen by the public sector.
Both also provide robust social safety nets, including unemployment and sickness benefits, and integration programs for immigrants. Each system has its nuances.
Ultimately, both countries support their residents, including immigrants. Further research will help you determine which system best suits your needs.