Accurate Tax by Country

rj_uk

Nest year my partner is likely to get a job that will mean we relocate to another country. At present we are not sure where yet but a shortlist might read USA, Canada, Germany, Switzerland, Denmark, Sweden or remain in the UK.

A viable option for me would be to become a freelancer again as I can work remotely. Most clients would be based in the UK but I assume unless I try and jump through loopholes its best to pay tax where I will be resident.

Is there any way I can accurately calculate the different tax benefits/costs by country?

If I am successfully in transitioning back to freelance I expect a gross income of around £45k. Assuming the worst maybe £25k.

As predicted income is unknown I would like to establish which of the shortlist might offer the best net income based on if I am at the top, middle or bottom of my predicted threshold.

There are many other factors in deciding where we will end up but my net income forecast is important for my esteem.

paddyrg

TBH wherever you end up in the first world, the amount of tax you pay will be broadly similar. Income tax might be lower in one country but have higher VAT, or a lack of NI contributions might be offset by compulsory private medical insurance, etc. And allowing for the lower case, on £25k you're probably talking about a fairly small difference overall, all considered. Personally, I wouldn't sweat it too much if your partner hasn't got the job yet.

A bigger problem might be double taxation - where you have liabilities in two countries. You'd want a tax advisor to help make sure you avoided that.

SleeplessinScandinavia

You can check what double taxation treaties (DTT) are in force by visiting http://www.hmrc.gov.uk/taxtreaties/dta.htm.

I live in Sweden, and (personally) am considerably worse off than I was in the UK - owing to the fact that my UK income is very heavily penalised by the Swedish tax system, and of course their version of VAT is 25% (as opposed to only 20% in the UK). Frankly, as soon as I can sell my home here in Sweden, I would leave!!

In my case, the DTT agreement means I show the Swede tax people a P60, indicating what UK tax has already been paid - this is then deducted from my Swedish tax bill.

Another thing to consider (if Sweden is on your list) is the possibility of the Social Democrats returning to power in next year's elections - broadly speaking, they are a 'tax and spend' party (the present government actually reduced taxes) and there is talk among some that the Social Democrats may reintroduce a wealth tax, by which all your worldwide assets (as opposed to income) are taxable.

Obviously, some may do well in Sweden from what is provided from taxation revenues: I personally do not.

Best of luck in whatever you decide!

gb12345

For Switzerland your tax will depend on where in the country you live as the tax is made up of Federal tax and Cantonal tax which varies based on the Canton and Commune that you live in.

The tax rate is far lower than the UK (after allowances, I paid less than 20% last year on a six figure salary), but you have to allow for paying the compulsary medical insurance that paddyrg mentioned and the fact that the cost of living is a lot higher than the UK. Also, if you are married then tax is assessed as a couple, so your income would be lumped together with your partner's for the purpose of calculating tax.

This calculator should give you an idea of taxes http://en.comparis.ch/steuern/steuervergleich/steuervergleich.aspx