Corporate Income Tax in Europe: A Comprehensive Comparison

Norway markets

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
Germany29.9%
United Kingdom25%
France25.8%
Italy27.8%
Spain25%
Portugal31.8%
Ireland12.5%
the Netherlands19-25.8%
Belgium25%
Sweden20.6%
Norway22%
Denmark22%
Finland20%

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.

  • This field is for validation purposes and should be left unchanged.

Get in touch

  • This field is for validation purposes and should be left unchanged.

Related topics

Contact us

  • This field is for validation purposes and should be left unchanged.
Business Attraction Index, Residency Options, Startups, Work Permits

Dutch Startup Visa – Requirements and Prices in 2025

Here’s an extensive article on the Dutch Startup Visa program, including requirements…

Business Setup, Compliance & Operations, Corporate tax, Cross-Border Taxation, Industries, Legal Requirements, Market Entry, Tax, Tax Incentives, Technology & IT, VAT

US Tech Company Expansion to Europe: A Strategic Guide for SaaS and IoT Product Lines

Who This Guide Is For This comprehensive guide is specifically designed for:…

Industries

Best Countries for Your Film Business Expansion in 2025

The global film industry continues its upward trajectory, with the movies and…

Legal Requirements, Logistics & Operations, Quick Notes, Transport & Logistics

Foreign Vehicle Agreements and Dutch Transport Licenses

Case Study: Romanian “Comodat” vs. Dutch Requirements A recent client inquiry highlighted an important consideration for transport entrepreneurs using foreign vehicle arrangements while operating a Dutch company. The Scenario Our Finding Important: A foreign “comodat” (loan for use) agreement is generally not sufficient to meet Dutch…

Compliance & Operations, Legal Requirements, Quick Notes

Legal Representation Requirements for Non-EU Food Supplement Sellers

Challenge A Canadian entrepreneur wants to sell vitamin gummies through Instagram across multiple EU countries. They plan to set up a French entity and use the One-Stop Shop (OSS) for VAT compliance while expanding to Italy and Spain. Their main concern is finding a legal representative…

Funding, Quick Notes, Subsidies & Government Grants

DHI Subsidy: Financial Support for International Entrepreneurs Expanding from the Netherlands

As an international entrepreneur based in the Netherlands ready for your next growth phase, the DHI subsidy scheme provides concrete support for your expansion plans. This subsidy helps SMEs introduce their technologies, products, or services to foreign markets. What is the DHI Subsidy? The DHI subsidy…

Thomas

Thomas is the founder of NordicHQ. Get in touch