Mandatory taxes for self-employed people - Europe

[mersed]

Hello.

What kind of taxes you need to pay currently in European countries as self-employed person? Having in mind that this really depends from country to country - and it is decently hard to read every law - if someone can share personal experience and info from their country that would be really valuable.

I found other topics related with taxes as well, but nothing really covers what I need.
Let me elaborate...

Currently in Bosnia and Herzegovina, they are trying to impose the law (it will happen really soon), where state pension and healthcare is mandatory, for employed and self employed people.

Currently, as a freelancer in Bosnia and Herzegovina you need to pay 4% of your total income for a healthcare and 10% as income tax (with 20% expenditure).

However, the new law they are trying to impose will require:
11% for healthcare (as mandatory state helthcare contribution - this is not per say tax, but having in mind that is mandatory I am treathing it as such).

18% for pension
13% for income tax
AND expenditure is decreased to 10%

Which is crazy. Obviously they need money, however, imposing pension as a mandatory per law seems ridiculous for me - because you dont have a choice anymore.

What kind of taxes (including the pension or healthcare) are mandatory in your country? We are planing to send amendments for this law, hence I am interested what kind of taxes you are paying in rest of the Europe?

[feed_my_eyes]

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Mersed K wrote:

Hello.

What kind of taxes you need to pay currently in European countries as self-employed person? Having in mind that this really depends from country to country - and it is decently hard to read every law - if someone can share personal experience and info from their country that would be really valuable.

I found other topics related with taxes as well, but nothing really covers what I need.
Let me elaborate...

Currently in Bosnia and Herzegovina, they are trying to impose the law (it will happen really soon), where state pension and healthcare is mandatory, for employed and self employed people.

Currently, as a freelancer in Bosnia and Herzegovina you need to pay 4% of your total income for a healthcare and 10% as income tax (with 20% expenditure).

However, the new law they are trying to impose will require:
11% for healthcare (as mandatory state helthcare contribution - this is not per say tax, but having in mind that is mandatory I am treathing it as such).

18% for pension
13% for income tax
AND expenditure is decreased to 10%

Which is crazy. Obviously they need money, however, imposing pension as a mandatory per law seems ridiculous for me - because you dont have a choice anymore.

What kind of taxes (including the pension or healthcare) are mandatory in your country? We are planing to send amendments for this law, hence I am interested what kind of taxes you are paying in rest of the Europe?

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We pay income tax, national insurance, council tax and VAT in the UK. All of the percentages that you've mentioned are lower than what I pay (but obviously this varies according to income). Now that people are living so much longer, there will need to be increased taxes to cover pensions and healthcare, so I expect that this will continue to increase. What's the alternative, though? Don't you want to have a pension or healthcare? 

[colettelewis]

It varies as you say from country to country. In France, I pay a little over 22% on everything I earn as a freelancer  and this covers health (70%). It covers pension too, but you have to earn a  lot more than I do as a freelancer for the pension to be viable. (At the moment I stand to get a pension of about €0.30 per week, which will certainly put me in the eligibility bracket for "restos du coeur" - charity food donation - when the time comes.)

ETA: OP it is always worth going with the system, don't try to get round it. It might work while you are young, but not when you are older. The benefits eventually, could be greater than you think. 

[mersed]

Thanks for the info Nichola.

Regarding "going with the system", I disagree. It depends from country to country. "Going with the system" in well developed countries like, germany, france, austria, uk etc ... make sense. 

However, if i wage my options, currently, it is much smarter to invest money into different things as options for retirement, comparing with the pension scheme of my country (just honest opinion).

[mersed]

Thanks for the info Christine.

Well, there is a lot more alternatives. Saving money by yourself, investing into stocks and similar. As long as there is an option - for you to decide do you want to use state pension scheme, or some private ones - all good. However, imposing this as mandatory seems like a weird move.