Tax rates of Europe – Wikipedia, the free encyclopedia
9 years ago
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%. Today most European countries have rates below 50%.[1]
| Country | Corporate tax | Maximum income tax rate | Standard VAT rate |
|---|---|---|---|
| Albania[2] | 15% | 10% | 20% |
| Austria | 25% | 50% | 20%[3] |
| Belarus | 18% | 15% | 20%[2] |
| Belgium | 33.99% | 50% | 21% (reduced rates of 6% and 12%)[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 | 23.5% (will be reduced to 22% from 2016) | 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 and 33% social security which is paid before gross wage by employer) | 20% (reduced rate 9%)[3] |
| Finland | 20% | 56.05% to 62.05% depending on municipality, including 7.8%[8] social insurance fees and excluding employer contribution, which is on average 20.88%.[8] | 24%[3][9] (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€)[10] | 45% (+4% for incomes above a yearly EUR 500,000) [11] | 20% (reduced rate of 10%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc.)[3][12] |
| Germany | 30.175% to 33.325% (15.825% federal plus 14.35% to 17.5% local) additionally 18% pension and 15.5% Healthcare | 13.5% ca. 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% | 42% ( +4% Solidarity Tax ) | 23%[3] (reduced rate of 13% for groceries and restaurants) |
| Hungary | 10% up to HUF 500 million and 19% thereafter[13] | 16% (additional contributions at 10% Social Security by employee and 24% Social Security by employer and health care 7% by employer) | 27%[3][14][15] |
| Iceland | 20%[16] | 46.24%[16] | 24% (12% reduced rate)[16] |
| Ireland | 12.5% on trading income and 25% for non-trading income | 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 | 31.4% (27.5% plus 3.9% municipal) | 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) 100,000 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 300,000 EUR income) | 42% (including 15% income tax, 34% social insurance tax, and 6% health insurance)[20] | 21% |
| Luxembourg | 29.22% (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] |
| F.Y.R.O.M[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% (6/7 tax refunds gives an effective rate of 5% for some companies[24]) | 35% | 18%[3] |
| Montenegro | 9%[25] | 9%[25] | 17%[25] |
| Netherlands | 20% up to €200,000 of profit and 25% above[26] | 52%[27] | 21%[28] (reduced rate of 6% and 0% for some goods and services) |
| Norway[29][30] | 25% | 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, and 10% for transport and culture.) |
| Poland | 19% | 32% | 23%[3] |
| Portugal | 21% | 46.5% (additional contributions at 11% Social Security by employee and 23.75% Social Security by employer) | 23% (reduced rates 13% and 6%) |
| Romania | 16% | 16% | 20% (5% for food; 9% for medicines, books, newspapers, hotel, or 4%)[3][31] |
| Serbia | 15% | 10–52% (capital gains 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 employer: 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% | 19% (additional contributions at 4% health care by employee and 10% health care by employer, 9.4% Social Security by employee and 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 | 28% (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 | 18% | 17% | 20% |
| United Kingdom | 20% (19% from 2017 and 18% from 2020 proposed)[40] | 45% on marginal additional annual income above £150,000, 40% between £42,000 and £150,000, 20% between £11,000 and £42,000, 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] |
