How Much Should You Hustle To Earn €1000/month After Taxes? [1 min read]

Have you been daydreaming about quitting your “real” job and moving to freelance? Would you like to have a 4-week vacation, no work on official bank holidays and sick-days and still earn €1000/month after taxes on average? Good! Here’s how much you should hustle.

Hustling on your own

DISCLAIMER: I’m not a financial advisor (yet! 🔥) and the following is not a substitute for independent professional advice.

N. B. (1) The hourly-rates calculated below do NOT include expenses, which have to be accounted separately for your individual case.

N. B. (2) The optimized** tax rate assumes the LEAST possible amount of tax payable in Latvia for €1000/month income after taxes, hence the least possible social tax contributions. Use with caution.

(1) Full-time Hustle Scenario

€12’000.00 Net income per year
€14’585.75
Total income per year before optimized** taxes (view the calculation below all scenarios)
220 Working days per year You’ll actually* work
8 Hours per day You’ll presumably work

€8.29 Your full-time hustle hourly rate (before taxes)

You’ll have to hustle and write invoices for at least €8.29/hour full-time to earn €1000/month on average, even during vacations and sick-days.

*250 official working days in 2019 in Latvia minus 20 for vacations and 10 for sick-days.

 


(2) ‘Millennial’ Hustle Scenario

4 Working days per week, obviously (176 days per year)
6 Hours per day (Like in Sweden, as read on Facebook)

€13.81 Your ‘millennial’ hustle hourly rate (before taxes)

 


(3) Fixed Rate Hustle Scenario

Have you been side-hustling already? Did you charge €10-€50/hour for your work? Here’s how much side-hustling you need to earn €1000/month on average:

€14’585.75 Total income per year before optimized** taxes
220 Working days per year

€66.30 Required income per working day (before taxes)

10€/hour rate = 6.7 side-hustling hours per working day
20€/hour rate = 3.4 side-hustling hours per working day
30€/hour rate = 2.3 side-hustling hours per working day
40€/hour rate = 1.7 side-hustling hours per working day
50€/hour rate = 1.4 side-hustling hours per working day

You’ll need 1.4-6.7 side-hustling hours per actual working day with 10€-€50/hour hustling rate (before taxes) to earn €1000/month on average even during vacations and sick-days.

 


**Optimizing Taxes For €1000/month Income

In order to optimize taxes for €1000/month income in Latvia, you have to register:

(1) a microenterprise-tax LLC (Limited Liability Company or SIA) in Latvia (because of the 15% income tax rate)
(2) a self-employed person for the remaining income.

(1) Pay the maximum regulated monthly salary from your company: 720 EUR/month, which is €847.06 before the 15% income tax.
(2) Pay the remaining 280 EUR/month as a self-employed person, which is €368.42 before all taxes

€847.06 + €368.42 = €1215.48/month hustle after taxes or the previously mentioned €14’585.75/year.

If you’d like to open a limited liability company in Latvia the easiest way possible with e-signatures, then go to my project www.registeracompany.lv or send an email to davis@registeracompany.lv to get started.

Happy hustling!

Hustling requires effort

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