Corporate Tax Rates in Europe 2026: Country Comparison
Tax burdens in Europe vary from country to country.
| Country | Standard VAT | Reduced VAT | Theoretical Corporate Tax | Regional Tax | Estimated Contributions | Real Corporate Burden |
| Malta * | 18% | 7% | 35% | 0% | 2% | 37% |
| Italy | 22% | 10% | 24% | 4% | 5% | 33% |
| Germany | 19% | 7% | 29,9% | 0% | 3% | 32,9% |
| France | 20% | 5,5% | 25% | 2% | 5% | 32% |
| Belgium | 21% | 6% | 25% | 3% | 2% | 30% |
| Austria | 20% | 10% | 23% | 3% | 2% | 29% |
| Spain | 21% | 10% | 25% | 2% | 2% | 29% |
| Netherlands | 21% | 9% | 19% - 25,8% | 0% | 2% | 27,8% |
| Luxembourg | 17% | 8% | 24,9% | 0% | 2% | 26,9% |
| Greece | 24% | 13% | 22% | 1% | 2% | 25% |
| Denmark | 25% | Not expected | 22% | 0% | 2% | 24% |
| Croatia | 25% | 13% | 18% | 2% | 3% | 23% |
| Czech Republic | 21% | 15% | 21% | 2% | 2% | 23% |
| Slovakia | 20% | 10% | 21% | 0% | 2% | 23% |
| Estonia | 24% | 9% | 20% | 0% | 1% | 21% |
| Slovenia | 22% | 9,5% | 22% | 0% | 2% | 21% |
| Poland | 23% | 8% | 19% | 0% | 2% | 21% |
| Finland | 25,5% | 10% | 20% | 1% | 2% | 23% |
| Sweden | 25% | 12% | 20,6% | 0% | 2% | 22,6% |
| Latvia | 21% | 12% | 20% | 0% | 2% | 22% |
| Romania | 21% | 9% | 16% | 0% | 2% | 18% |
| Lithuania | 21% | 9% | 15% | 0% | 2% | 17% |
| Cyprus | 19% | 5% | 12,5% | 0% | 2% | 14,5% |
| Ireland | 23% | 13,5% | 12,5% | 0% | 2% | 14,5% |
| Bulgaria | 20% | 9% | 10% | 0% | 2% | 12% |
| Hungary | 27% | 5% | 9% | 0% | 2% | 11% |
Figures are indicative and may change over time. Please verify local tax regulations before making business decisions.
Although Malta’s tax burden might initially seem very high, a closer analysis shows that the situation is quite different. With the right strategies, Malta proves to be the most convenient and attractive option for certain types of businesses. Of course, these are only general figures, and each case should be carefully evaluated with the help of a professional.
| Country | Refunds/Benefits |
| Malta (with refund) | 6/7 refund on dividend taxes |
| Hungary | 9% corporate tax rate |
| Bulgaria | 10% corporate income tax and 10% personal income tax. |
| Cyprus | Low 12.5% corporate tax, many deductions for international activities |
| Ireland | 12.5% tax for international trading companies, IP-box incentives |
| Lithuania | Reduced rate for small businesses (5%) up to certain thresholds |
| Romania | Special tax regimes apply to qualifying micro-enterprises |
| Slovenia | Deductions for reinvested profits |
| Poland | Enhanced allowances for R&D, special economic zones |
| Estonia | Favorable rates: taxation only when profits are distributed |
| Latvia | Same as Estonia: taxation only upon distribution |
| Sweden | Large deductions for R&D, green companies |
| Finland | Minor incentives for startups and R&D |
| Slovakia | Investment incentives available for qualifying projects |
| Croatia | Reduced tax rates for businesses under revenue thresholds |
| Denmark | Refunds for R&D activities and technology startups |
| Greece | Deductions for reinvestments, EU structural funds |
| Portugal | Special tax regime in the Madeira Free Trade Zone |
| Luxembourg | Strong incentives for patents and copyrights |
| Netherlands | Innovation Box regime and R&D incentives (WBSO) |
| Spain | R&D tax incentives, investment tax credits and regional incentives |
| Austria | R&D tax incentives and investment allowances |
| Belgium | R&D tax incentives, innovation income deduction and patent incentives |
| Germany | Generous R&D incentives, but relatively high overall corporate tax burden |
| France | R&D tax credits and innovation incentives available |
| Italy | Transition 5.0 and investment tax credits for eligible projects |
| Malta (without refund) | No benefits unless the refund is claimed |
