Tax rates of Europe

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This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate and individual taxes and value added taxes (VAT). It is not intended to represent the true tax burden to either the corporation or the individual in the listed country.

The quoted income tax rate is, except where noted, the top rate of tax: most jurisdictions have lower rate of taxes for low levels of income. Some countries also have lower rates of corporation tax for smaller companies. In 1980, the top federal rates of most European countries were above 60 percent. Today most European countries have rates below 50%.[1]

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Country Corporate tax Maximum Income tax rate Standard VAT rate
Albania[2] 10% 10% 20%
Austria 25% 50% 20% [3]
Belarus 24% 15% 20%[2]
Belgium 33.99% 50% 21%[3]
Bosnia and Herzegovina[4] 10% 5% (+ 0%-15% per location) 17%
Bulgaria[5] 10% 10% 20%[3]
Croatia 20% 40% 25%[6]
Cyprus 10% 45% 18% (reduced rates of 8% and 5%)[7]
Czech Republic 21% 15% 21%[3]
Denmark 25% 55.4%[8] (labour market contributions 8% plus tax ceiling 51.5% of the remaining 92%) 25%[3]
Estonia 21% 21% 20%[3]
Finland 24.5%, however the government has agreed on lowering it to 20% as of 2014. 53% 24%[3][9]
France 33.33% (15% for "small" businesses) 40 % 19.6% (reduced rate of 7%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc.)[3]
Germany 30.175% to 33.325% (15.825% federal plus 14.35% to 17.5% local) 40% 19% (reduced rate of 7% applies e.g. on sales of certain foods, books and magazines, flowers and transports)[3]
Georgia 15% 20% 18%
Greece 25% 45% 23%[3]
Hungary 19% 16% (20.32%, as the 27% social security paid by the employer counts as income as well) [10] 27%[3][11][12]
Iceland 18%[13] 46.28%[13] 25.5%[13]
Ireland 12.50% 41% (additional contributions at 4% Pay-Related Social Insurance (PRSI) and 7% Universal Social Charge (USC)) 23%[14]
Italy 31.4% 45% 21%[3]
Latvia 15% 23% 21%[15]
Liechtenstein 12.5% (2.5% on IP and royalties) 17.89% (11.6% Social security is shared between employer and employee) 100k USD income gives 7.6% income tax rate. 0% capital gains tax. 8%[16]
Lithuania 15% 15% (as of end 2012) 21%
Luxembourg 28.59% (commercial activity); 5.718% on intellectual property income, royalties; 0% on dividends and capital gains (under certain conditions in case of major participation) 38.95% 15%[3]
Macedonia[17] 10% 10% 18%
Malta 35% 35% 18%[3]
Montenegro 9%[18] 9%[18] 17%[18]
Netherlands 25% 52% [19] 21%[20]
Norway[21][22] 28% 54.3% 25%
Poland 19% 32% 23%[3]
Portugal 12.5%-27.5% (Mean tax rate: 15%) 46.5% (additional contributions at 11% Social Security by Employee + 23.75% Social Security by Employer) 23% (reduced rates 13% and 6%)
Romania 16% 16% 24%[3][23]
Russia 6% or 20% 13% (additional contributions by Employer: 0%-5.1% Federal Health Care Fund, 0%-2.9% Federal Social Security Fund, 10%-26% Pension Fund) 18% (reduced rates 10% and 0%)
Serbia 10% 14% 20%
Slovakia 23% 19% (additional contributions at 4% Health Care by Employee + 10% Health Care by Employer, 9.4% Social Security by Employee + 19.4% Social Security by Employer) 20%[3] (10% reduced rate)
Slovenia [24] 20% (2012: 18%, 2013: 17%, 2014: 16%, 2015+: 15%) 41% 20%[3]
Spain 30% (28% Basque Country & Navarra, 4% ZEC companies in Canary Islands) 42% 21%[3] (reduced rates 10% and 4%)
Sweden 22% 56.6% 25%[3]
Switzerland 25% 45.5% 8% [25]
Turkey 20% 35% [26] 18%
Ukraine 23%, from 1.01.2012 - 21%, from 1.01.2013 - 19%, from 1.01.2014 - 16% 17% 20%
United Kingdom 23%, from 6.4.2014 - 21%, from 6.4.2015 - 20% 45% on annual incomes above £150000, 40% on annual incomes between £35000-£150000, 20% on annual incomes up to £35000, plus national insurance contributions at various rates between 2% and 13.8% [27] 20% (reduced rate of 5% for home energy and renovations, 0% for life necessities - groceries, water, prescription medications, medical equipment and supplies, public transport, children's clothing, books and periodicals) [3]

See also [edit]

References [edit]

  1. ^ "Top Marginal Personal Income Tax Rates". Tax Policy Center. 2008. Retrieved 2011-12-26. 
  2. ^ a b Federation of International Trade Associations : country profiles
  3. ^ a b c d e f g h i j k l m n o p q r s t u All current EU standard rates are from European Commission, VAT Rates Applied in the Member States of the European Community, Situation at 1 January 2009, http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf, consulted 23 August 2009.
  4. ^ Fabel Werner Schnittke - International Consulting and Auditing Company
  5. ^ Bulgaria cuts corporate tax to 10 percent - iht,business,economics, world economy,Bulgaria Corporate Tax - Business - International Herald Tribune
  6. ^ "Croatia - Tax changes effective March 2012". kpmg.com. 2012-02-24. 
  7. ^ "Cyprus Government VAT Information". Cyprus Government. 2013-01-14. Retrieved 2013-04-06. 
  8. ^ "SKAT: Income tax rates". Skat.dk. Retrieved 2011-05-12. 
  9. ^ Change in VAT rates as of 1 July 2010
  10. ^ http://www.ahkungarn.hu/fileadmin/ahk_ungarn/Dokumente/Bereich_CC/Veranstaltungen/2011/2011-03/2011-03-09_Radnoczy/Valsagado_adovalsag.pdf
  11. ^ "VAT hike pushes Hungary's consumer price inflation to 5.1% in July". Realdeal.hu. 2009-08-11. Retrieved 2011-05-12. 
  12. ^ "Hungary plans bigger budget cuts, VAT hike to 27 pct". 2012-01-01. Retrieved 2012-01-03. 
  13. ^ a b c [1][dead link]
  14. ^ "VAT increase to 23% confirmed". Irish Times. 2011-12-06. Retrieved 2011-12-07. 
  15. ^ Three governments, one prime minister, The Baltic Times, 27 June 2012
  16. ^ Liechtenstein tax law
  17. ^ Invest in Macedonia | Taxes and Rates
  18. ^ a b c [2][dead link]
  19. ^ Dutch Tax Administration, consulted 9 June 2010
  20. ^ "Netherlands 21% VAT rate increase is effective October 2012". 
  21. ^ The Norwegian tax reform 2004-2006 - regjeringen.no
  22. ^ Skatteetaten - Guide to Value Added Tax in Norway
  23. ^ "Romania plans big VAT rise to secure bail-out funds". BBC News. 2010-06-26. Retrieved 2011-05-12. 
  24. ^ Ministry of Finance - Tax Administration of the Republic of Slovenia
  25. ^ "Swiss voters approve VAT rate increase". Meridianglobalservices.com. Retrieved 2011-05-12. 
  26. ^ Income tax rates (in Turkish)
  27. ^ HM Revenue & Customers: Rates and allowances - Income Tax

Sources [edit]

External links [edit]

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