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]
| 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% Federal + 0%-15% per location | 17% |
| Bulgaria[5] | 10% | 10% / 15% for self employed individuals | 20%[3] |
| Croatia | 20% | 45% | 23% |
| Cyprus | 10% | 30% | 15%[3] |
| Czech Republic | 21% | 15% | 20%[3] |
| Denmark | 25% | 51.5%[6] At US$75,000 (child allowances and other credits available) additional 15% tax, total = 34.67%, not 51% | 25%[3] |
| Estonia | 21% | 21% | 20%[3] |
| Finland | 26% | 53% | 23%[3][7] |
| France | 33.33% | 41% | 19.6%[3] |
| Germany | 15.825 % (federal) plus 14.35 % to 17.5 % (local) | 45% | 19%[3] |
| Georgia | 20% | 12% | 18% |
| Greece | 25% | 45% | 23%[3] |
| Hungary | 10% | 16% (20.32%, as the 27% social security paid by the employer counts as income as well) [8] | 27%[3][9][10] |
| Iceland | 18%[11] | 46.28%[11] | 25.5%[11] |
| Ireland | 12.50% | 41% | 23%[12] |
| Italy | 31.4% | 45% | 21%[3] |
| Latvia | 15% | 23% | 22% |
| Lithuania | 15% (5% for small companies) | 21%[3][13] | 21% |
| Luxembourg | 28.59% | 38.95% | 15%[3] |
| Macedonia[14] | 10% | 10% | 18% |
| Malta | 35% | 35% | 18%[3] |
| Montenegro | 9%[15] | 9%[15] | 17%[15] |
| Netherlands | 25% | 52% [16] | 19%[3] |
| Norway[17][18] | 28% | 54.3% | 25% |
| Poland | 19% | 32% | 23%[3] |
| Portugal | 12.5%-27.5% (Mean tax rate: 15%) | 46.5% | 23% |
| Romania | 16% | 16% | 24%[3][19] |
| Russia | 20% | 13% | 18% |
| Serbia | 10% | 14% | 18% |
| Slovakia | 19% | 19% | 19%[3] (Increasing to 20% from January 2011) |
| Slovenia [20] | 20% | 41% | 20%[3] |
| Spain | 30% (28% Basque Country & Navarra, 4% ZEC companies in Canary Islands) | 45% | 18%[3] |
| Sweden | 26.3% | 56.6% | 25%[3] |
| Switzerland | 25% | 45.5% | 8% [21] |
| Turkey | 20% | 40% | 18% |
| Ukraine | 23%, from 1.01.2012 - 21%, from 1.01.2013 - 19%, from 1.01.2014 - 16% | 17% | 20% |
| United Kingdom | 20%-27% (further annual decreases planned)[22] | 50% [23] | 20%[3] |