Tax rates of Europe

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 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% 0% (+ 0–15% per location) 17%
Bulgaria[5] 10% 10% 20%[3]
Croatia 20% 40% 25% (reduced rate of 13%)[6]
Cyprus 12.5% 35% 19% (reduced rates of 8% and 5%)[7]
Czech Republic 19% 22% 21% (reduced rates of 15% and 10%)[3]
Denmark 24.5% in 2014. Will be reduced to 23.5% in 2015 and 22% from 2016 onwards. 55.56% (including 8% social security paid by the employee but excluding 0.42–1.48% church tax imposed on members of the national Church of Denmark) 25% (reduced rate 0% on transportation of passengers and newspapers normally published at a rate of more than one issue per month)[3]
Estonia 0% on undistributed profits (20% on distribution of profit) 20% (+ 2.4% of unemployment insurance tax, 0.8% paid by employer, 1.6% paid by employee + 33% social security which is paid before gross wage by employer) 20% (reduced rate 9%)[3]
Finland 20% 53% 24%[3][8] (reduced rate of 14% for groceries and restaurants, 10% for books, medicine, transport of passengers and some others)
France 33.3% (36.6% above 3.5M€, 15% below 38k€)[9] 45% (+4% for incomes above a yearly EUR 500,000) [10] 20% (reduced rate of 10%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc.)[3][11]
Germany 30.175% to 33.325% (15.825% federal plus 14.35% to 17.5% local) additionally 18% pension and 15.5% Healthcare ca. 13.5% entry level tax for income exceeding 8,004 EUR per year, and gradually rising in microscopic steps up to 45%; all income below the threshold of 8,004 EUR per year is not taxed (0% tax rate). 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 26% or 33%(if profit above €50000) 42% ( +4% Solidarity Tax ) 23%[3] (reduced rate of 13% for groceries and restaurants)
Hungary 10–19% (10% up to HUF 500 million)[12] 16% (additional contributions at 10% Social Security by Employee + 24% Social Security by Employer and Health Care 7% by Employer) 27%[3][13][14]
Iceland 20%[15] 46.24%[15] 24% (12% reduced rate)[15]
Ireland 12.5% (a surcharge of 20% is payable on the total undistributed investment and rental income of a close company. Close "service" companies are also liable to a surcharge of 15% on one-half of their undistributed trading income.'[16]). 41% (additional contributions at 4% Pay-Related Social Insurance (PRSI) and 7% Universal Social Charge (USC)).

A surcharge of 3% applies to people who have income from self-employment above €100,000, regardless of age.

23%[17]
Italy 27.5% 45% 22%[3]
Latvia 15% 23% 21% (reduced rates 12% and 0%)[18]
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%[19]
Lithuania 15% (5% for small businesses with up to 10 employees and no more that 500k LTL income) 42% (Including 15% income tax, 34% social insurance tax, and 6% health insurance)[20] 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) 40%[21] 17%[3]
Macedonia[22] 10% 37% [23] (includes income tax 10%, mandatory state pension 18%, mandatory public health insurance 7.3%, mandatory unemployment insurance 1.2%, mandatory personal injury insurance 0.5%) 18%
Malta 35% (6/7ths tax refunds gives an effective rate of 5%[24]) 35% 18%[3]
Montenegro 9%[25] 9%[25] 17%[25]
Netherlands 20% or 25% above € 200,000 profit[26] 52%[27] 21%[28] (reduced rate of 6% and 0% for some goods and services)
Norway[29][30] 27% (0% on dividends and capital gains, even short-term investments) 47.2% (53.7% including 14.1% social security contribution by employer. All taxes include 8.2% pension fund payments). 25% (reduced rate of 15% for groceries)
Poland 19% 18-32% 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% (9% for medicines, books, newspapers, hotel ..., or 4%)[3][31]
Russia 20% (6% dividends) 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 15% 10–52% (capital gain tax 15%, standard income tax rate 10%, additional contributions by Employee: 13% state pension fund, 6.5% state health fund, 0.5% unemployment fund; additional contributions by Employeer: 11% state pension fund, 6.5% state health fund, 0.5% unemployment; maximum contributions capped (amount changing monthly); additional tax for higher salaries (after 3 times average salary additional 10%, after 6 times average salary additional 15%)),[32][33][34] 20%
Slovakia 22% + health care levy of 14% = 36% 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[35] 17% 50% 22%[3] (reduced rate 9.5%) – from 1 July 2013
Spain 30% (25% for SMEs, 4% ZEC companies in Canary Islands) 42% 21%[3] (reduced rates 10% and 4%)
Sweden 22% (16.5% proposed[36]) 56.6% (67% including social security paid by employer[37]) 25%[3] (reduced rates 12% and 6%)
Switzerland 25% 45.5% 8%[38]
Turkey 20% 35%[39] 18%, 8%, 1% and 0%
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% (20% for businesses with profits less than £300k, marginal relief for between £300k and £1.5m)[40] 45% on marginal additional annual income above £150k, 40% between £32k–150k, 20% between £11k–£32k, 0% below; plus national insurance contributions at various rates between 2% and 13.8%[41] 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

References

  1. ↑ "Top Marginal Personal Income Tax Rates" (PDF). Tax Policy Center. 2008. Retrieved 2011-12-26.
  2. ↑ 2.0 2.1 Federation of International Trade Associations : country profiles
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 All current EU standard rates updated Nov 2014, EU VAT rates as at November 2014, http://www.vatlive.com/vat-rates/european-vat-rates/eu-vat-rates/, consulted 5 January 2015.
  4. ↑ Fabel Werner Schnittke – International Consulting and Auditing Company
  5. ↑ Bulgaria cuts corporate tax to 10 percent – 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. ↑
  9. ↑ "French corporate taxes (in French)". French government. 2014. Retrieved 2014-03-20.
  10. ↑ "Individual income tax rates table". KPMG. 2013. Retrieved 2013-07-10.
  11. ↑ "French VAT since 2014 (in French)". French government. 2014. Retrieved 2014-03-20.
  12. ↑
  13. ↑ "VAT hike pushes Hungary's consumer price inflation to 5.1% in July". Realdeal.hu. 2009-08-11. Retrieved 2011-05-12.
  14. ↑ "Hungary plans bigger budget cuts, VAT hike to 27 pct". 2012-01-01. Retrieved 2012-01-03.
  15. ↑ 15.0 15.1 15.2 http://www.invest.is/doing-business/taxation/principal-taxes/
  16. ↑ "Close Companies (Ireland)".
  17. ↑ "VAT increase to 23% confirmed". Irish Times. 2011-12-06. Retrieved 2011-12-07.
  18. ↑ "41.pants. Piemērojamās nodokļa likmes" (in Latvian). likumi.lv. 14 December 2012. Retrieved 28 December 2013.
  19. ↑ Liechtenstein tax law
  20. ↑ http://www.tax.lt/
  21. ↑ http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-DU-13-001/EN/KS-DU-13-001-EN.PDF
  22. ↑ Invest in Macedonia | Taxes and Rates
  23. ↑ "Macedonian income taxes (in Macedonian)". Public Revenue Office, Macedonia. 2013. Retrieved 2014-09-15.
  24. ↑ http://www.rsmmalta.com.mt/taxation-of-companies.aspx
  25. ↑ 25.0 25.1 25.2
  26. ↑ Dutch Tax Administration
  27. ↑ Dutch Tax Administration
  28. ↑ "Netherlands 21% VAT rate increase is effective October 2012".
  29. ↑ The Norwegian tax reform 2004-2006 – regjeringen.no
  30. ↑ Skatteetaten – Guide to Value Added Tax in Norway
  31. ↑ "Romania plans big VAT rise to secure bail-out funds". BBC News. 2010-06-26. Retrieved 2011-05-12.
  32. ↑ Personal Income Tax Law Serbia (official website)
  33. ↑ Accurate Personal Income Tax Calculator as of September 2013 for Serbia
  34. ↑ Maximum Contributions for State Funds by Accountant Association of Serbia
  35. ↑ Ministry of Finance – Tax Administration of the Republic of Slovenia
  36. ↑ http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-alert-sweden-170614.pdf
  37. ↑ http://www.ekonomifakta.se/sv/Fakta/Skatter/Skatt-pa-arbete/Marginalskatt/
  38. ↑ "Swiss voters approve VAT rate increase". Meridianglobalservices.com. Retrieved 2011-05-12.
  39. ↑ Income tax rates (in Turkish)
  40. ↑ HM Revenue & Customs: Corporation Tax rates
  41. ↑ HM Revenue & Customers: Rates and allowances – Income Tax

Sources

External links