Thanks for the clarification. Granted, I oversimplified. The 52% is for everything over ~50K. As a business owner, however, you pay this income tax on top of 20%/25% corporate taxes.

If you make a 100.000 euro profit and extract it from your business the company pays 20% corporate tax (that is the rate below 200.000 euro profit), leaving you with 80,000. That remainder is taxed as follows: http://en.wikipedia.org/wiki/Income_tax_in_the_Netherlands. This leaves you with 46.408 euro from your original 100.000 (using the rates that include mandatory pension, social security and State funded medical care payments).

Please correct me if I'm wrong, I'm far from a tax specialist.

Of course, you also have to pay all sorts of other taxes with the remainder, including municipal taxes, a hefty value added tax on most things you buy and property taxes. In return you get the ability to subtract part of your mortgage from your taxes, as well as a government that takes care of you (if you want it or not) when it comes to social security or affordable health care.

Note that there seems to be a tax reduction for certain foreign workers (see: http://en.wikipedia.org/wiki/Income_tax_in_the_Netherlands#T...). Also see http://en.wikipedia.org/wiki/Corporate_Tax_in_the_Netherland... for corporate tax rates.

EDIT: If you sell a company as a resident of the Netherlands you also get taxed quite heavily, but there are ways to mitigate part of that (e.g. using a holding company, so you don't have to pay income tax directly over the money you get for your shares). If you're moving here to start a business, I would suggest consulting a tax advisor or lawyer before you make any decisions or file paperwork.