2023 Corporate Tax Rates in Europe
European countries—like almost all countries around the world—require businesses to pay corporate income taxes on their profits. The amount of taxes a business ultimately pays on its profits depends on both the corporate tax base and the corporate tax rate. Today’s map shows how statutory corporate income tax rates compare across European OECD countries.
Taking into account central and subcentral taxes, Portugal has the highest statutory corporate income tax rate among European OECD countries, at 31.5 percent. Germany and Italy follow, at 29.8 percent and 27.8 percent, respectively. Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates.
On average, European OECD countries currently levy a corporate income tax rate of 21.5 percent. This is slightly below the worldwide average which, measured across 180 jurisdictions, was 23.4 percent in 2022.
European countries—like most regions around the world—have experienced a decline in corporate income tax rates over the past decades, but the average corporate income tax rate has leveled off in recent years. Of the 27 European countries, only the Netherlands increased its corporate income tax rate in the last year, a trend expected to hold steady as countries have more efficient tax types to turn towards.
| Combined Statutory Corporate Income Tax Rates in European OECD Countries, 2023 | |
|---|---|
| European OECD Country | Combined Statutory Corporate Income Tax Rate |
| Australia | 30.00 |
| Austria | 25.00 |
| Belgium | 25.00 |
| Canada | 26.21 |
| Chile | 10.00 |
| Colombia | 35.00 |
| Costa Rica | 30.00 |
| Czech Republic | 19.00 |
| Denmark | 22.00 |
| Estonia | 20.00 |
| Finland | 20.00 |
| France | 25.83 |
| Germany | 29.83 |
| Greece | 22.00 |
| Hungary | 9.00 |
| Iceland | 20.00 |
| Ireland | 12.50 |
| Israel | 23.00 |
| Italy | 27.81 |
| Japan | 29.74 |
| Korea | 27.50 |
| Latvia | 20.00 |
| Lithuania | 15.00 |
| Luxembourg | 24.94 |
| Mexico | 30.00 |
| Netherlands | 25.80 |
| New Zealand | 28.00 |
| Norway | 22.00 |
| Poland | 19.00 |
| Portugal | 31.50 |
| Slovak Republic | 21.00 |
| Slovenia | 19.00 |
| Spain | 25.00 |
| Sweden | 20.60 |
| Switzerland | 19.70 |
| Türkiye | 23.00 |
| United Kingdom | 19.00 |
| United States | 25.81 |
|
Note: Combined statutory corporate income tax rates include both central and subcentral corporate income tax rates. Source: OECD, “Tax Database: Table II.1. Statutory corporate income tax rate;” and Bloomberg Tax, “Country Guide.” |
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