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 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[4] 33.99% 50% (excluding 13.07% social security paid by the employee and also excluding 32% social security paid by the employer) 21% (reduced rates of 6% and 12%)[3]
Bosnia and Herzegovina[5] 10% 0% (+ 0–15% per location) 17%
Bulgaria[6] 10% 10% 20%[3]
Croatia 20% 40% 25% (reduced rate of 13%)[7]
Cyprus 12.5% 35% 19% (reduced rates of 8% and 5%)[8]
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) around 57,8 in total 20% (reduced rate 9%)[3]
Finland 20% 56.05% to 62.05% depending on municipality, including 7.8%[9] social insurance fees and excluding employer contribution, which is on average 20.88%.[9] 24%[3][10] (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€)[11] 49% (45% +4% for incomes above a yearly EUR 500,000) [12] 20% (reduced rate of 10%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc.)[3][13]
Germany 30.175% to 33.325% (15.825% federal plus 14.35% to 17.5% local) additionally 18% pension and 15.5% Healthcare 45% (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]
Greece 29% 53% (45% + 8% Solidarity Tax) 24%[3] (13% for groceries)
Hungary 10% up to HUF 500 million and 19% thereafter[14] 15% (additional contributions at 10% Social Security by employee and 24% Social Security by employer and health care 7% by employer) 27%[3][15][16]
Iceland 20%[17] 46.24%[17] 24% (12% reduced rate)[17]
Ireland 12.5% on trading income and 25% for non-trading income 52% (PAYE income 40%; additional contributions at 4% Pay-Related Social Insurance (PRSI) and 8% Universal Social Charge (USC)).

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

 23%[18]
Italy 31.4% (27.5% plus 3.9% municipal) 45% 22%[3]
Latvia 15% 23% 21% (reduced rates 12% and 0%)[19]
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%[20]
Lithuania 15% (5% for small businesses with up to 10 employees and up to €300,000 income) 42% (including 15% income tax, 34% social insurance, 6% health insurance)[21] 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%[22] 17%[3]
F.Y.R.O.M[23] 10% 37% [24] (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[25]) 35% 18%[3]
Montenegro 9%[26] 9%[26] 17%[26]
Netherlands 20% up to €200,000 of profit and 25% above[27] 52%[28] 21%[29] (reduced rate of 6% and 0% for some goods and services)
Norway[30][31] 25% (proposed 22% by 2018 [32]) 46.9% (53.5% 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% 45% (includes social security taxes by the employee and the employer)[33] 20% (5% for food; 9% for medicines, books, newspapers, hotel, or 4%)[3][34]
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%)),[35][36][37] 20%
Slovakia 22% [38] 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[39] 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% 56.6% (67% including social security paid by employer[40]) 25%[3] (reduced rates 12% and 6%)
Switzerland 16.55% 30% 8%[41]
Ukraine 18% 17% 20%
United Kingdom 20% (19% from 2017 and 18% from 2020 proposed)[42] 47% total made up of 45% tax 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%[43] 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. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 Federation of International Trade Associations : country profiles
  3. ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 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. ↑ [1]
  5. ↑ Fabel Werner Schnittke – International Consulting and Auditing Company
  6. ↑ Bulgaria cuts corporate tax to 10 percent – Tax – Business – International Herald Tribune
  7. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ 9.0 9.1 http://www.stm.fi/en/insurance/social_insurance_contribution Transclusion error: {{En}} is only for use in File namespace. Use {{lang-en}} or {{en icon}} instead.
  10. ↑ [2]
  11. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ [3]
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  16. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ 17.0 17.1 17.2 http://www.invest.is/doing-business/taxation/principal-taxes/
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Liechtenstein tax law
  21. ↑ http://www.tax.lt/
  22. ↑ http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-DU-13-001/EN/KS-DU-13-001-EN.PDF
  23. ↑ Invest in Macedonia | Taxes and Rates
  24. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ http://www.rsmmalta.com.mt/taxation-of-companies.aspx
  26. ↑ 26.0 26.1 26.2 [4]
  27. ↑ Dutch Tax Administration
  28. ↑ Dutch Tax Administration
  29. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  30. ↑ The Norwegian tax reform 2004-2006 – regjeringen.no
  31. ↑ Skatteetaten – Guide to Value Added Tax in Norway
  32. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  33. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  34. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  35. ↑ Personal Income Tax Law Serbia (official website)
  36. ↑ Accurate Personal Income Tax Calculator as of September 2013 for Serbia
  37. ↑ Maximum Contributions for State Funds by Accountant Association of Serbia
  38. ↑ KPMG tax tables
  39. ↑ Ministry of Finance – Tax Administration of the Republic of Slovenia
  40. ↑ http://www.ekonomifakta.se/sv/Fakta/Skatter/Skatt-pa-arbete/Marginalskatt/
  41. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  42. ↑ HM Revenue & Customs: Corporation Tax rates
  43. ↑ HM Revenue & Customers: Rates and allowances – Income Tax

Sources

External links

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