Company Formation in Europe

Tax rates in Europe

Here is a list of the highest possible tax rates in Europe for certain categories of income. It covers two types of tax: income tax and value added tax (VAT).

StateTax rateStandard VAT tariff
Albania15%20%
Andorra10%4,5 %
Armenia18%20%
Austria25%20 %(reduced rates 10% + 13%)
Belgium25%21 % (reduced rates 6 % ir 12 %)
Bosnia and Herzegovina10%17%
Bulgaria10%20 %(reduced rates 9%)
Croatia18 % (reduced rate 10 % for SMEs)25 % (reduced rates 13 % + 5 %) (reduced rates 9 %)
Cyprus12,5 %19 % (reduced rates 5 % + 9 %) (reduced rates 9 %)
Czech Republic21%21 % (reduced rates 12 %)
Denmark22%25 % (reduced rate of 0% for passenger transport and newspapers, normally published more than once a month)
Estonia0% on undistributed profits. 20% CIT on distributed profits. 14% on regular distributions.22 % (reduced rates 9 %)
Finland20%25,5 %(sumažintas 14 %)
France30%20%
Germany22.83%19%
Georgia15%18%
Greece24%24%
Hungary9%27%
Iceland20%24%
Ireland12.50%23%
Man Island0%same as UK
Italy27.9% (24% plus 3.9% municipal)22 %(reduced rates 10%, 5%, 4%)
Latvia20% CIT on distributed profits. 0% on undistributed profits. 15% for small businesses.21% (reduced rates 12% ir 0%)
Lithuania15 % (5 % for SMEs)21%
Luxembourg24.94% (commercial activities); 5.718% on intellectual property income, royalties.17%
Macedonia10%18%
Malta18%
Monaco0 % (>75 % profit in Monaco) or 33,33 %
Moldova12% arba 7% for IT businesses20% (reduced rates - 8%)
Monte Negro9%20%
The Netherlands19% for first 200 000 EUR profit, 25,8% for next profit.21%
Norway22%25%
Poland19 % (reduced rate 9 % for SME nuo 2019-01-01)23%
Portugal21% + 3–9%, depends on profit23%
RomaniaPajamos <1 mln. EUR and at least one employee: 1 % from total sales + 8 % dividends19%
Serbia15%20%
Slovakia21%20%
Slovenia19%22%
Spain25%21% (reduced rates 10% ir 4%); Canary Islands – 4%
Sweden22 % (21,4 % 2019 m., 20,6 % 2021 m.)25% (reduced rates 12% ir 6%)
United Kingdom and Wales25 % (19 %,when total profit < 250 000 GBP)20%
EditorCompany Formation in Europe