In the wave of globalization, immigration has become a crucial choice for many to plan a new chapter in their lives. However, the welfare systems and tax policies of different countries vary significantly, directly impacting the quality of life and wealth accumulation after immigration. This article will provide an in-depth analysis of the welfare and tax policies of popular immigration destinations such as the United States, Canada, Australia, New Zealand, and Portugal, offering decision-making references for applicants.
The United States: High Welfare and High Taxes Coexist
As the world’s largest economy, the United States’ welfare system is centered on “equal opportunity.” Children of green card holders can attend public primary and secondary schools for free, and university tuition is only one-third to one-half of that for international students; low-income families can apply for Medicaid, covering costs such as prenatal checkups and vaccinations; those who have paid taxes for 10 years can receive a monthly pension of $1,000-$3,000 after retirement. However, the US tax policy is equally stringent: the federal personal income tax rate can reach as high as 37%, and the global tax system requires immigrants to declare overseas assets, with compliance costs exceeding $10,000 annually. Despite this, its top-tier educational resources and multicultural environment continue to attract a large number of high-net-worth individuals.
Canada: Universal Welfare and Complex Tax System
Canada is known for its “cradle-to-grave” welfare system. Universal free healthcare covers basic medical services, but medication costs are the responsibility of the individual. The unemployed can receive a benefit of 55% of their previous salary (for up to 45 weeks) and receive free vocational training. The Canada Child Benefit (CCB) provides a maximum monthly subsidy of CAD 6,833 per child. Regarding taxes, Canada uses a global tax system; with federal and provincial taxes combined, high-income earners can face a combined tax rate of up to 53.5%. However, its tax credit policy is flexible; expenses such as childcare and education can be used to reduce taxes, effectively lowering the actual tax burden.
Australia: Balancing High Welfare and High Property Taxes
Australia’s welfare system balances fairness and efficiency. Medicare covers the entire population, including hospitalization and surgery costs. Maternity benefits continue until the child reaches adulthood, and public school tuition is free. Unemployment benefits are paid at 80% of previous salary for up to two years. However, Australia boasts some of the heaviest property taxes globally—Sydney’s property taxes account for 44% of the house price, while Melbourne and Brisbane have 38% and 36% respectively. Personal income tax rates can reach as high as 45%, but residents can legally minimize their tax burden by hiring accountants.
New Zealand: Beneficial Policies and Temporary Tax Exemptions
New Zealand’s welfare policies are centered on universal access. Permanent residents enjoy free public healthcare, including the cost of hiring a Chinese translator; maternity benefits cover the entire lifespan of a child; public school fees are free; and unemployment benefits have no time limit until re-employment. Regarding taxation, the personal income tax threshold in New Zealand is NZ$14,000, with a maximum tax rate of 33% on income exceeding NZ$70,000. Furthermore, new immigrants can enjoy a four-year temporary tax exemption on foreign exchange income, further reducing their tax burden.
Portugal: Tax Benefits and Low Cost of Living
Portugal has become a popular destination for European immigrants thanks to its NHR tax system. This system allows new immigrants to apply for 10 years of non-resident tax residency, enjoying benefits such as tax exemption on foreign income and a flat 20% tax rate on a portion of domestic income. Furthermore, Portugal has no property tax or inheritance tax, and its corporate income tax rate is only 21%, with small and medium-sized enterprises enjoying a preferential tax rate of 17%. Combined with its mild climate and low cost of living, Portugal is an ideal choice for retirees and high-net-worth individuals.
Key to Immigration Decisions: Balancing Welfare and Taxation
When choosing an immigration country, balancing welfare and taxation is crucial. High-welfare countries often come with high tax burdens, while low-tax regions may sacrifice some quality of public services. Applicants need to comprehensively assess their own needs (such as children’s education, retirement planning, and asset allocation) to choose the most suitable immigration destination. If you wish to gain a deeper understanding of the immigration policies and welfare details of various countries, you can pay attention to professional immigration exhibitions—these gather high-quality projects and policy interpretations from around the world to help you accurately match your ideal immigration plan.
Shanghai Formote Exhibition Service Co., Ltd. specializes in planning exhibitions for the immigration industry, building an overseas resource connection platform for applicants, and helping them realize their dreams of a globalized life.
