🇩🇪 COUNTRY A Germany VS 🇳🇱 COUNTRY B Netherlands

Netherlands wins for the first 5 years (the maximum 30% ruling term). The 30% ruling lets qualifying expats receive 30% of salary tax-free, bringing the effective rate to ~21% total at €100,000 (2026) vs Germany's 45%+ (with Soli and church tax). On €100,000: NL expat keeps ~€79,000 (€62,700 without the ruling); German resident keeps ~€58,000 (single, no church tax, after income tax, Soli and employee social contributions). This ~€21,000/year difference is massive.

The 30% ruling allows employers to pay 30% of salary tax-free as 'extraterritorial costs' reimbursement. Requirements: recruited from abroad, specific expertise, taxable salary of at least €48,013/year excluding the tax-free allowance (2026; €36,497 if under 30 with a master's degree), and not lived within 150km of Dutch border for 16 of 24 months prior. Duration: up to 5 years. From 2027, drops to 27%.

Netherlands taxes savings/investments in 'Box 3' at 36% on a fictional assumed return—even if you actually lost money. Assets above €59,357 per person (2026 tax-free allowance) are affected. Germany has no equivalent: investment gains taxed only when realized. If you have significant savings/investments, Germany may be better long-term.

Germany, surprisingly. Netherlands' top rate is 49.5% from €78,426; Germany's 45% from €277,826. But Germany adds: 5.5% Solidaritätszuschlag (if high earner) and 8-9% church tax (if member). Without those, Germany's income tax is lower. Once German employee social contributions are added, the all-in bills are close at €150,000 (~€65,100 Germany vs ~€64,200 Netherlands, 2026), with Germany edging ahead at higher incomes as its contribution ceilings bite. With church tax as well, it's similar. Netherlands' Box 3 makes it worse for wealthy savers.