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Have a detailed look here below about taxation in Europe:

Tax rates in Europe

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]

CountryCorporate taxMaximum income tax rateStandard VAT rate
Austria25%55%[4]20%[5] (Reduced rates 10% + 13%)[6]
Belgium[7]29% (25% from 2020. For SME’s 20% from 2018 on the first €100,000 profit)[8]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%)[5]
Bosnia and Herzegovina[9][10][11]10%10%17%
Bulgaria[12]10%10% (additional 12.9% by the employee for social security contributions, i.e. health insurance, pension and unemployment fund); and additional 17.9% by the employer for various social security contributions)[13]20%[5] (Reduced rates 9%)[6]
Croatia18% (Reduced rate 12% for small business)40% (excluding 35.2% total sum of insurances levied on income)25% (Reduced rates 13% + 5%)(Reduced rates 9%)[6]
Cyprus12.5%35%19% (Reduced rates 5% + 9%)(Reduced rates 9%)[6]
Czech Republic19%53.5% (15% income tax + 6.5% by employee + 25% by employer (2.3% healthcare + 21.5% social security + 1.2% state policy of employment) + 7% solidarity contribution (assuming income is above 1 277 328 CZK per year))21% (reduced rates of 15% and 10%)[5]
Denmark22%51.95% (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)[5]
Estonia20% CIT on distributed profit. 14% on regular distribution. 0% on undistributed profits.[14]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 total20% (reduced rate 9%)[5]
Finland20%25% to 67% depending on the net income and municipality, including 7.8%[15][16][17] social insurance fees, employee unemplayment payment and employer unemployment payment, which is on average 18% (2018).[15]24%[5][18] (reduced rate of 14% for groceries and restaurants, 10% for books, medicine, transport of passengers and some others)
France30% (including social contributions) after 2018 (‘PFU’), before: 33.3% (36.6% above €3.5M, 15% below €38k)[19]49% (45% +4% for annual incomes above €250,000 for single taxpayers or above €500,000 for married couples) [20] + social security and social contribution taxes at various rates, for example 17,2 % for capital gains, interests and dividends.20% (reduced rate of 10%, 5.5%, 2.1% and 0% for specific cases like some food, transportation, cultural goods, etc.)[5][21]
Germany22.825% (few small villages) to 32.925% (in Munich) depending on the municipality. This includes the 15% CIT, 5.5% solidarity surcharge plus the trade tax payable to the municipality.47.475% which includes 45% income tax and 5.5% solidarity surcharge based on the total tax bill for incomes above €256,304. The entry tax rate is 14% for incomes exceeding the basic annual threshold of €9,000.19% (reduced rate of 7% applies e.g. on sales of certain foods, books and magazines, flowers and transports)[5]
Greece28%65.67% (45% for >€40,000+ 7.5% Solidarity Tax for >€40000)+(26.95% Social Security for employees or up to 47.95% for private professionals)24%[5] (Reduced rates 13% and 5%)[6]
Hungary9%33.5% Employee expenses altogether of gross salary without children: 15% Income Tax (flat), Social Security: 10% Pension, 3% in cash + 4% in kind Health Care, 1.5% Labor Market contributions[22]Employer: 17.5% Social Tax, 1.5% Labour Contribution of the monthly gross salary[23]27%[5][24][25] (Reduced rates 18% and 5%)[6]
Iceland20%[26]36.94% from 0 – 834.707 and 46.24% over 834.707 kr (2017)[27]24% (12% reduced rate)[26]
Ireland12.5% for trading income25% for non-trading income40% over €34,550 for single, €42,800 for married taxpayers.Plus USC(Universal Social Charge)4.5% on income up to €50,170 and 8% on balance. Social insurance 4%23% [28]
Isle of Man0%[29]20% plus national insurance of under 12.8%[29]Same as United Kingdom (see below)[30]
Italy27.9% (24% plus 3.9% municipal)45.83% (43% income tax + 2.03% regional income tax + 0.8% municipal income tax)22%[5] (Reduced rates 10%, 5%, 4%)[6]
Latvia20% CIT on distributed profit. 0% on undistributed profits. 15% on small businesses[31]20%(income tax)[1] 35.09%(social insurance)[32] Total up to 55.09%21% (reduced rates 12% and 0%)[33]
Liechtenstein12.5% [34]28% (max. 8% national and 20% municipal income tax) plus 4% of the taxpayer’s net worth is subject to the same rate as wealth tax. 0% on capital gains.8% / 2.5% (till 31.12.2017)
7.7% / 2.5% (from 01.01.2018)[35]
Lithuania15% (5% for small businesses)[36]44.27% (effective tax rates: 34.27% social insurance (nominally it is 1.77% payable by employer + 19.5% payable by employee + from 1.8% to 3% optional accumulation of pence), 20% income21% (Reduced rates 5%, 9%)[6]
Luxembourg24.94% (commercial activity); 5.718% on intellectual property income, royalties.43.6% (40% income tax + 9% solidarity surcharge calculated on the income tax)[37]17%[5] (Reduced rates 3%, 8%, 14%)[6]
Republic of North Macedonia[38]10%37% [39] (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%
Malta35% (6/7 or 5/7 tax refunds gives an effective rate of 5% or 10% for most companies[40])35% (additional 10% by the employee for social security contributions, i.e. health insurance, pension and education); and additional 10% by the employer for various social security contributions)18%[5] (Reduced rates 5%, 7% and 0% for life necessities – groceries, water, prescription medications, medical equipment and supplies, public transport, children’s education fees) [6]
Monaco0% (>75% revenue within Monaco) or 33.33%[41]
Montenegro9%[42]12.65% (11% income tax + 15% of the income tax bill to the municipality)[42]17%[42]
Netherlands25% above €200,000 of profit and otherwise 16.5%[43]51.75%[44] (57.75% including income dependent tax reduction for incomes between €68,508-90,710)[45]21%[46] (reduced rate of 9% and 0% for some goods and services)
Norway[47][48]22%[49]46.4% (53.0% 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.)
Poland19% (Reduced rate 9% for small business since 01.01.2019)17% up to 85 528 zł (from 1.10.2019)32% above 85 528 zł (~20 000 euro)23% (reduced rates of 5% and 8%)[5]
Portugal21% + 3 to 9% depending on profit48% + 5% solidarity surcharge + 11% social security (paid by the employee) + 23,75% (social security paid by the company)23% (reduced rates 13% and 6%)
RomaniaRevenue <€1m: 1% of all sales
Revenue >€1m: 16% on profit
Employee: 41.5% [10% income tax (out of gross minus pension & health deductions), 25% pension contribution (out of gross), 10% health contribution (out of gross)] – Gross incomes below RON 3,600 benefit from personal deductions of up to RON 1,310 from taxable income.
Employer: 2.25% (compulsory work insurance)[50]
19% (reduced rates of 9% and 5%)[51]
Russia20%43% (13.0% income tax, 22.0% mandatory pension fund contribution, 2.9% unemployment insurance, 5.1% mandatory universal health insurance)[52]20%
Serbia15%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%)),[53][54][55]20% (10% reduced rate)
Slovakia21% [56]50% (income tax 19% + 25% for the part of annual income greater than €35,022.31; additional contributions at 4% mandatory health insurance by employee and 10% by employer, 9.4% Social Security by employee and 25.2% by employer)20%[5] (10% reduced rate)
Slovenia[57]19%50%22%[5] (reduced rate 9.5%) – from 1 July 2013
Spain25%4% in the Canary Islands [58]45% maximum Income tax rate. Not including employee contribution of 6.35% Social Security tax, 4.7% pension contribution tax, 1.55% unemployment tax, 0.1% worker training tax. Not including employer contribution of 23.6% Social security tax, 5.5% unemployment tax, 3.5% (or more) workers comp tax, worker training tax .06%, 0.2% FOGASA tax (employment tax in case of company bankruptcy).21%[5] (reduced rates 10% and 4%)
Sweden22% (21.4% 2019, 20.6% 2021)55.5% including social security paid by employer[59]25%[5] (reduced rates 12% and 6%)
Switzerland16.55%22.5% (Kanton Zug, Gemeinde Walchwil) to 46% (Kanton Geneve), average rate 34%. These taxes do not include social security that is private and not income based (e. ) [60]8% / 2.5% (till 31.12.2017)
7.7% / 2.5% (from 01.01.2018[61]
United Kingdom19% (17% from 2020)[62]47% (45% income tax + 2% NI) – theoretically, NI could reach 12%, but in practice it’s never combined with the higher income tax rateFor earnings between £100,000 – £123,000 employees pay the 40% higher rate tax + removal of tax free personal allowance + 2% NI

45% (additional rate) income tax on annual income above £150,000, 40% (higher rate) between £43,001 and £150,000, 20% (basic rate) between £0 and £43,000. There is also a National Insurance levy between 2% and 13.8% for employees and self-employed individuals but capital gains and dividend income is not subject to NI. The first £11,000 is tax-free if your annual income is below £100,000.

Capital gains is taxed at 10% (or 18% on residential property) for basic rate taxpayers and 20% (or 28% on residential property) for higher and additional rate taxpayers. Dividend income from UK companies is taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.

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)[5]

Per country information: income tax bands[edit]


Austrian income taxation is determined by §33 of Austrian Income Tax Code (Einkommensteuergesetz – EStG)

Annual Income [€]Taxation Rate [%]
0 – 11,0000
60,001 – 90,00048

Until the end of the year 2020 an additional tax (55%) will affect income of over 1 million €.



The total Finnish income tax includes the income tax dependable on the net salary, employee unemployment payment, and employer unemployment payment.[16][17] The tax rate increases very progressively rapidly at 13 ke/year (from 25% to 48%) and at 29 ke/year to 55% and eventually reaches 67% at 83 ke/year, while little decreases at 127 ke/year to 65%. The middle-income person will get 44 euros from every 100 euros the employer puts on the work. The GP will then again get from every extra 100 euros that the employer puts on the work only 33 euros. Some sources do not include the employer unemployment payment, for instance Veronmaksajat -organisation.[63] [64]

Annual income atTax rate (including employer unemployment payment)


Income tax in France depends on the number of people in the household. The taxable income is divided by the number of persons belonging to the household. Each adult counts as one person while the first two children count as half each. From the third child onwards each child counts as one person. Therefore, a household comprising 2 adults and 3 children is considered to be a household of 4 persons for tax purposes.

The rates below do not include the 17% social security contributions.

Annual income AboveAnnual income belowTax rate[65]


German income tax comprises 5 income tax bands, with the first two being based on a totally Progressive tax rate and the rest being flat rate. Taxable income is derived after subtracting personal and child allowances from earned income. In addition a number of other deductions may be claimed by German taxpayers.

  • Personal allowance: €9,000 per adult
  • Child allowance: €7,428 per child
Annual income aboveAnnual income belowMarginal tax rate 2018[66]
€9,000€13,99614% − 23.97%
€13,996€54,94923.97% − 42%

In Germany, married couples are taxed jointly. This means that the tax liability for the couple is twice the amount resulting from the tariff when inserting the average income of both spouses. Due to the progressive tariff, filing jointly uniformly reduces the total tax burden if spouses’ incomes differ.


  • Personal Allowance: €800 per adult[citation needed]
  • Allowance per child: €1,120
Annual income AboveAnnual income belowTax rate[67]


Income tax in the Netherlands (Loonheffing) and social security contributions are combined in one payroll tax. There are no personal tax-free allowances

The latest scales for the tax year 2019. Note that scale 2 and 3 are effectively the same (but have a different proportion of social security to ‘loonheffing’ ratio). The plan is to merge it into two scales by 2021.:

Annual income AboveAnnual income belowTax rate (including employee social security)

Without effect income dependent deductions for incomes up to €90,710


Income tax in Portugal depends on a number of factors, including regional (different tax rates depending if you live in the mainland, the Azores or Madeira regions, marital status and number of dependents.

For simplification purposes, the following is a summary of the major tax brackets.

Taxable IncomeTax Rate (Mainland)Tax Rate (Madeira)Tax Rate (Azores)
Up to €7,09114.5%11.6%10.15%
€7,091 and €10,70023%20.7%17.25%
€10,700 and €20,26128.5%26.5%21.38%
€20,261 and €25,00035%33.75%28%
€25,000 and €36,85637%35.87%29.6%
€36,856 and €80,64045%44.95%36%
Above €80,64048%48%38.4%

A solidarity additional tax of 2.5% is applied on income between €80,640 and €250,000. All income above €250,000 is taxed a further 5%.


Spanish income tax includes a personal tax free allowance and an allowance per child. In 2012 a special temporary surcharge was introduced as part of austerity measures to balance the budget. The personal allowance currently stands at €5,151.

  • 1st child €1,836
  • 2nd child €2,040
  • 3rd child €3,672
  • 4th & subs €4,182
Annual income aboveAnnual income belowTax rate (excluding temporary surcharge)Tax rate (including temporary surcharge)[68]

United Kingdom[edit]

Income tax for the United Kingdom is based on 2019/20 tax bands. The current tax free threshold on earnings is £12,500. The relief is tapered by £1 for every £2 earned over £100,000.

Annual incomeTax rate[69]
AboveUp to

See also[edit]


  1. ^ “Top Marginal Personal Income Tax Rates” (PDF)Tax Policy Center. 2008. Retrieved 2011-12-26.
  2. Jump up to:a b “International Trade, Export Import, Trade Leads & World Trade Country Profiles”fita.org.
  3. ^ “Tatimi mbi të Ardhurat Personale nga paga”Website of the Albanian Ministry of Finances. Retrieved 2017-02-22.
  4. ^ New maximum tax rate from 2016-2020,”Einkommenssteuergesetz 1988 § 33″,”https://www.ris.bka.gv.at/Dokument.wxe?Abfrage=Bundesnormen&Dokumentnummer=NOR40174043, consulted 11 July 2016.
  5. Jump up to:a b c d e f g h i j k l m n o p q r s t All current EU standard rates updated Nov 2014, EU VAT rates as at November 2014http://www.vatlive.com/vat-rates/european-vat-rates/eu-vat-rates/, consulted 5 January 2015.
  6. Jump up to:a b c d e f g h i j “EU VAT Rates”, All EU vat rates current and historical.
  7. ^ “Archived copy”. Archived from the original on 2016-05-29. Retrieved 2016-05-16.
  8. ^ News, Flanders (26 July 2017). “Belgium to slash corporation tax to 25%”vrtnws.be.
  9. ^ “Webuild – Free Bootstrap coming soon template with countdown”reconstruction.poreskaupravars.org.
  10. ^ “Data” (PDF)www.pufbih.ba.
  11. ^ “Tax rates in Bosnia and Herzegovina – Business Environment – Lloyds Bank International Trade Portal”www.lloydsbanktrade.com.
  12. ^ “Breaking News, World News & Multimedia”www.nytimes.com.
  13. ^ “Archived copy”. Archived from the original on 2017-09-15. Retrieved 2017-09-14.
  14. ^ Andmevara, AS. “Income Tax Act – Riigi Teataja”www.riigiteataja.ee. Retrieved 2016-11-26.
  15. Jump up to:a b http://www.stm.fi/en/insurance/social_insurance_contribution (in English)
  16. Jump up to:a b “Näin vähän lisäsatasesta jää sinulle käteen – laskelman tulos yllättää myös keskituloisen”www.aamulehti.fi.
  17. Jump up to:a b “Valtion tuloveroasteikko 2018”Verohallinto.
  18. ^ “Value added tax”Verohallinto.
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  20. ^ “Individual income tax rates table”. KPMG. 2013. Retrieved 2013-07-10.
  21. ^ “French VAT since 2014 (in French)”. French government. 2014. Retrieved 2014-03-20.
  22. ^ “Payable social security contributions in Hungary”. National Tax and Customs Administration. Retrieved 2018-11-26.
  23. ^ “Hungary”. KPMG International Cooperative. 2019. Retrieved 2019-07-25.
  24. ^ “VAT hike pushes Hungary’s consumer price inflation to 5.1% in July”. Realdeal.hu. 2009-08-11. Retrieved 2011-05-12.
  25. ^ “Hungary plans bigger budget cuts, VAT hike to 27 pct”. 2012-01-01. Retrieved 2012-01-03.
  26. Jump up to:a b “Archived copy”. Archived from the original on 2014-03-14. Retrieved 2014-03-13.
  27. ^ “Staðgreiðsla 2017”Ríkisskattstjóri.
  28. ^ “VAT increase to 23% confirmed”Irish Times. 2011-12-06. Retrieved 2011-12-07.
  29. Jump up to:a b “Isle of Man Government – Rates and allowances”www.gov.im. Retrieved 2018-03-23.
  30. ^ “Isle of Man Government – VAT rates”www.gov.im. Retrieved 2018-03-23.
  31. ^ called “mikrouzņemums”, less than €40 000/year
  32. ^ “Tax system in Latvia”fm.gov.lv. 17 January 2018. Retrieved 2018-02-27.
  33. ^ “41.pants. Piemērojamās nodokļa likmes” (in Latvian). likumi.lv. 14 December 2012. Retrieved 28 December 2013.
  34. ^ (The reduced corporate tax rate of 2.5% on Intellectual Property in Liechtenstein was abolished in 2017, with a phase out period for the old regime until 2020.)
  35. ^ “Suche – Konsolidiertes Recht – Lilex – Gesetzesdatenbank des Fürstentum Liechtenstein”www.gesetze.li.
  36. ^ called correspondingly UAB «mažoji bendrija», with up to 10 employees and up to €300,000 income “REPUBLIC OF LITHUANIA LAW ON CORPORATE INCOME TAX”.
  37. ^ “Archived copy” (PDF). Archived from the original (PDF) on 2014-11-14. Retrieved 2014-06-27.
  38. ^ “Invest in Macedonia – Taxes and Rates”.
  39. ^ “Macedonia’s income taxes (in Macedonia)”. Public Revenue Office, Macedonia. 2013. Retrieved 2014-09-15.
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  41. ^ “Corporate income tax / Taxes on profits / Other taxes and duties / Tax / Public Services for Businesses- Monaco”en.service-public-entreprises.gouv.mc.
  42. Jump up to:a b c “Archived copy” (PDF). Archived from the original (PDF) on 2013-12-06. Retrieved 2013-07-11.
  43. ^ “Dutch Tax Administration”.
  44. ^ “U hebt vóór 2019 de AOW-leeftijd bereikt”www.belastingdienst.nl.
  45. ^ “Tabel arbeidskorting 2019”www.belastingdienst.nl.
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  49. ^ Finansdepartementet (8 October 2018). “Skattesatser 2019”Regjeringen.no.
  50. ^ “Salariul minim pe economie in 2019 este 2080 lei – Calculator salariu brut net”legislatiamuncii.manager.ro.
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  52. ^ “Social Insurance Contributions – Federal Tax Service”www.nalog.ru.
  53. ^ “Закон о порезу на доходак грађана”Пореска управа.
  54. ^ “Kalkulator za obračun plate”www.mena.rs.
  55. ^ “Računovodstvena praksa”praksa.rs.
  56. ^ “Corporate tax rates table – KPMG Global”KPMG. 26 September 2020.
  57. ^ “Ministry of Finance – Tax Administration of the Republic of Slovenia”.
  58. ^ https://canariaszec.com/en/about-us/#advantages
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  60. ^ “Der Mythos vom Steuerparadies Schweiz”. Neuer Zürcher Zeitung. Retrieved 2017-02-03.
  61. ^ “Swiss voters approve VAT rate increase”. Meridianglobalservices.com. Retrieved 2011-05-12.
  62. ^ “Rates and allowances: Corporation Tax”GOV.UK.
  63. ^ “Palkansaajan veroprosentit”Veronmaksajain Keskusliitto ry.
  64. ^ “Palkkakuitti 2019”Veronmaksajain Keskusliitto ry.
  65. ^ “Archived copy” (PDF). Archived from the original (PDF) on 2012-05-26. Retrieved 2012-04-18.
  66. ^ {de} http://www.gesetze-im-internet.de/estg/__32a.html
  67. ^ Redazione internet Agenzia Entrate. “Agenzia delle Entrate – Income tax for individuals”. .agenziaentrate.gov.it. Archived from the original on 2014-04-13. Retrieved 2014-04-15.
  68. ^ Madrid, Abc es /. “¿Cuántos impuestos tendrás que pagar de más? Mira aquí la tabla por tramos del IRPF”ABC.es.
  69. ^ “Income Tax rates and Personal Allowance”. gov.uk. Retrieved 2019-06-01.


External links[edit]