European Tax Maps

Corporate Income Tax Rates in Europe, 2024

Like most regions around the world, European countries have experienced a decline in corporate income tax rates over the past four decades, but the average corporate income tax rate has leveled off in recent years.

Corporate Tax Rates around the World, 2023

Of the 225 jurisdictions around the world, only six have increased their top corporate income tax rate in 2023, a trend that might be reversed in the coming years as more countries agree to implement the global minimum tax.

Comparing Europe’s Tax Systems: Individual Taxes

Estonia has the most competitive individual tax system in the OECD for the 10th consecutive year.

Comparing Europe’s Tax Systems: Corporate Taxes

According to the corporate tax component of the 2023 International Tax Competitiveness Index, Latvia and Estonia have the best corporate tax systems in the OECD.

Real Property Taxes in Europe, 2023

High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on.

Cigarette Taxes in Europe, 2023

Beer Taxes in Europe, 2023

As Oktoberfest celebrations kick off around the world, let’s look at how much tax European Union (EU) countries add to the world’s favorite alcoholic beverage.

Carbon Taxes in Europe, 2023

In recent years, several countries have taken measures to reduce carbon emissions, including instituting environmental regulations, emissions trading systems, and carbon taxes. In 1990, Finland was the world’s first country to introduce a carbon tax.

Net Operating Loss Carryforward and Carryback Provisions in Europe, 2023

Carryover tax provisions help businesses “smooth” their risk and income, making the tax code more neutral across investments and over time.

Patent Box Regimes in Europe, 2023

The aim of patent boxes is generally to encourage and attract local research and development (R&D) and to incentivize businesses to locate IP in the country. However, patent boxes can introduce another level of complexity to a tax system, and some recent research questions whether patent boxes are actually effective in driving innovation.

Capital Allowances in Europe, 2023

Capital allowances play an important role in a country’s corporate tax base and can impact investment decisions—with far-reaching economic consequences.

Diesel and Gas Taxes in Europe, 2023

As the EU pursues massive changes in public policy as part of its green transition, expect fuel taxes to be central to any policy discussions.

Windfall Profit Taxes in Europe, 2023

It’s unlikely these implemented and proposed windfall taxes will achieve their goals of raising additional revenues without distorting the market. Instead, they would penalize domestic production and punitively target certain industries without a sound tax base.

Integrated Tax Rates on Corporate Income in Europe, 2023

In most European OECD countries, corporate income is taxed twice, once at the entity level and once at the shareholder level.

Tax Burden on Labor in Europe, 2023

To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.

Wealth Taxes in Europe, 2023

Instead of reforming and hiking the wealth tax, perhaps policymakers should consider whether the tax is serving its intended objectives, and, if not, consider repealing the tax altogether.

Estate, Inheritance, and Gift Taxes in Europe, 2023

As tempting as inheritance, estate, and gift taxes might look—especially when the OECD notes them as a way to reduce wealth inequality—their limited capacity to collect revenue and their negative impact on entrepreneurial activity, saving, and work should make policymakers consider their repeal instead of boosting them.

Tax Subsidies for R&D Expenditures in Europe, 2023

Many countries incentivize business investment in research and development (R&D), intending to foster innovation. A common approach is to provide direct government funding for R&D activity. However, a significant number of jurisdictions also offers R&D tax incentives.

Dividend Tax Rates in Europe, 2023

In many countries, corporate profits are subject to two layers of taxation: the corporate income tax at the entity level when the corporation earns income, and the dividend tax or capital gains tax at the individual level when that income is passed to its shareholders as either dividends or capital gains.

Capital Gains Tax Rates in Europe, 2023

In many countries, investment income, such as dividends and capital gains, is taxed at a different rate than wage income. Denmark levies the highest top capital gains tax of all countries covered, at a rate of 42 percent. Norway levies the second-highest top capital gains tax at 37.8 percent. Finland and France follow, at 34 percent each.