Corporate Income Tax in Europe: A Comprehensive Comparison

When it comes to corporate income tax, Europe is a hotbed of activity. Every country seems to have its own rules and regulations when it comes to taxing businesses. This can make it difficult for companies doing business in multiple European countries. In this blog post, we will compare corporate income tax rates in some of the most popular European countries. We will also look at some of the exemptions and deductions that are available in each country.

What country has the lowest corporate income tax in Europe?

At the moment, Ireland has the lowest corporate income tax in Europe. The Irish government offers a rate of just 12.50%. This will however go up to 15 percent, since the OECD countries reached a deal on a minimum corporate tax rate. This is significantly lower than the rates offered in other countries. For example, France has a corporate income tax rate of 33%.

Which European countries have a flat corporate income tax?

Several European countries have a flat corporate income Tax. These countries include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom.

map with eu member states in blue

Which European countries have a progressive corporate income tax?

Some European countries have a progressive corporate income tax. This means that the rate changes based on the amount of income that a company makes. The more money you make, the higher your corporate tax rate will be. Some of the countries with a progressive corporate income tax include Albania, Andorra, Belarus, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Malta, Moldova, Montenegro and the Netherlands.

What are some of the deductions and exemptions that are available in Europe?

Each European country has its own set of deductions and exemptions. However, there are some common deductions that can be found in most countries. These include things like depreciation expenses, research and development expenses, and employee benefits. Additionally, many European countries offer a variety of tax credits which can help reduce your overall tax bill. For example, France offers a credit for social security contributions made by employees.

It is important to note that these comparisons should not be taken as legal advice. If you are looking for specific information about corporate income tax in a particular European country, please consult with a qualified tax advisor.

Which European countries have an exemption for foreign-earned income?

Ireland is currently offering a corporate income tax exemption for foreign earned income. This means that companies doing business outside Ireland can avoid paying corporate income tax on any income that is earned outside of the country. This exemption can be a huge advantage for companies that are doing business in multiple countries.

What European countries have a territorial taxation system?

A few European countries, including the United Kingdom, have a territorial taxation system. This means that companies are only taxed on income that is generated within the country’s borders. This can be advantageous for companies that operate in multiple countries because it eliminates the need to pay corporate income tax on foreign-earned income.

Corporate tax in the Netherlands

The Netherlands has a corporate income tax rate from 15 to 25%. This is in the middle of the pack when it comes to European countries. However, it is one of the lowest rates for small businesses. On top of that, there is a lower tariff for innovative businesses that invest in research and development in the Netherlands.

Furthermore, the Netherlands offers a wide variety of exemptions and deductions which can help reduce your overall tax bill.

Corporate tax in Belgium

Belgium has a corporate income tax rate of 25%, which is slightly above average in Europe. However, Belgium offers a variety of exemptions and deductions which can help reduce your overall tax bill. Belgian companies must pay taxes on their worldwide income. This can be disadvantageous for companies that do business in multiple countries.

Corporate Tax in Norway

The corporate income tax rate in Norway is 22%. This is higher than the European average. However, there are a variety of deductions and exemptions which can help reduce your overall tax bill. Additionally, Norwegian companies must pay taxes on their worldwide income.

European comparison

Below is a current table with the most important corporate tax rates in Europe.

CountryCorporate tax rate
Germany30%
United Kingdom19 - 20%
France26.5%
Italy24%
Spain25%
Portugal21%
Ireland15%
the Netherlands15-25%
Belgium25%
Sweden20.6%
Norway22%
Denmark22%

So, what’s the bottom line?

There is no one answer to this question. Every European country has its own unique set of rules and regulations when it comes to corporate income tax. It is important to consult with a tax professional to determine which country is best for your business. Contact us below if you need any assistance.

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