## Contents

- 1. Corporate Tax Rates — All 27 EU Countries
- Key Takeaways

## 1. Corporate Tax Rates — All 27 EU Countries

*Last verified: Jun 2026. Standard headline national CIT rates; excludes most local surcharges, minimum taxes and sector regimes (noted where material). Cross-check each rate at [PwC Worldwide Tax Summaries](https://taxsummaries.pwc.com/) and [Tax Foundation 2026 CIT table](https://taxfoundation.org/data/all/eu/corporate-income-tax-rates-europe/) — both refresh in Jan.*

| Country | Standard Rate | Notes |
|---------|--------------|-------|
| Austria | 23% | Reduced from 25% (phased 24% in 2023, 23% from 2024). Min CIT €1,750/yr (GmbH). |
| Belgium | 25% | SME rate: 20% on first €100,000 taxable profit (≥30% individual director remuneration of ≥€45,000, not a financial company, etc.). |
| Bulgaria | 10% | Flat rate. One of the lowest in the EU. |
| Croatia | 18% | Reduced rate: 10% for revenue < €1M. |
| Cyprus | **15%** | **Increased from 12.5% effective 1 Jan 2026** (2026 tax reform, aligning with Pillar Two). IP Box still ~2.5% effective; dividends/securities gains exemption retained. Verify scope at [PwC Cyprus](https://taxsummaries.pwc.com/cyprus). |
| Czech Republic | 21% | Raised from 19% (2024 consolidation package). |
| Denmark | 22% | No local/municipal corporate tax surcharge. |
| Estonia | 0% / 22% | 0% on retained earnings; **22% on distributed profits (22/78 gross-up)** since 2025. **The reduced 14/86 rate for regular distributions was ABOLISHED from Jan 2025.** A planned increase to 24% was scrapped (Dec 2025). |
| Finland | 20% | No surtaxes. |
| France | 25% | Flat 25% since 2022 (down from 33.3%). **Reduced 15% rate DOES apply** to first €42,500 of profit for SMEs with turnover < €10M, ≥75% held by individuals, capital fully paid. A one-off surtax on very large companies applied for FY2025 — verify current-year finance law at [impots.gouv.fr](https://www.impots.gouv.fr/). |
| Germany | ~29.9% effective | 15% federal (Körperschaftsteuer) + 5.5% solidarity surcharge on CIT (= 15.825%) + trade tax (Gewerbesteuer) ~7–21% by municipality (avg ~14%). Federal coalition has signaled gradual CIT cuts from 2028 — not yet in force; verify at [BMF](https://www.bundesfinanzministerium.de/). |
| Greece | 22% | Reduced from 24% in 2022. |
| Hungary | 9% | Lowest in the EU. Plus local business tax (HIPA) up to 2% on net revenue. |
| Ireland | 12.5% | Standard trading income rate. 25% on non-trading (passive) income. KDB: 10% effective. Pillar Two QDMTT applies to in-scope groups (≥€750M). |
| Italy | ~27.9% effective | 24% IRES + ~3.9% IRAP (regional, varies). A reduced IRES (e.g. 20%) has applied conditionally on reinvestment/hiring in recent budgets — verify current year at [Agenzia Entrate](https://www.agenziaentrate.gov.it/). |
| Latvia | 0% / 20% | Estonian-style: 0% on retained; 20% on distributed (20/80 gross-up). |
| Lithuania | **17%** | **Raised to 16% (2025), then 17% from 1 Jan 2026.** Reduced rate **7%** for small entities (<10 staff, <€300K income); **0% for first two years** for new small entities (<€300K). |
| Luxembourg | ~23.87% effective | **CIT reduced to 16% from 2025** (was 17%); 14% on income < €175,000. Effective aggregate ~**23.87%** in Luxembourg City (16% CIT + 7% solidarity surcharge + 6.75% municipal business tax). Lower MBT outside the capital. |
| Malta | 35% / 5% effective | 35% headline, full imputation; non-resident shareholders typically reclaim 6/7ths → ~5% effective on distributed trading profits. (Malta is implementing Pillar Two via QDMTT for in-scope groups — verify.) |
| Netherlands | 25.8% | 19% on first €200,000 taxable profit; 25.8% above. (Brackets unchanged for 2026.) |
| Poland | 19% | Reduced 9% for small taxpayers (revenue < €2M-equivalent in PLN) and first-year startups. Optional Estonian CIT regime (0% retained). |
| Portugal | **19%** | **Standard IRC reduced to 19% from 2026** (was 21%); further gradual cuts planned. SME rate **15% on first €50,000**. Municipal surcharge ≤1.5%; state surcharge 3–9% on higher profits. |
| Romania | 16% | Micro-company regime: 1–3% on revenue (tightened thresholds, conditions); additional minimum/turnover taxes for large/specific sectors — verify at [ANAF](https://www.anaf.ro/). |
| Slovakia | 10% / 21% / **24%** | **Tiered from 2025–2026:** 10% (taxable income ≤ €100,000); 21% (€100,000–€5M); **24% (> €5M, from 2026).** |
| Slovenia | 22% | **Raised from 19% to 22% (2025–2028 temporary increase).** Verify expiry at [FURS](https://www.fu.gov.si/). |
| Spain | 25% | Reduced 23% for net turnover < €1M; new companies 15% for first 2 profitable years (Startup Law). |
| Sweden | 20.6% | Flat (since 2021). |

### Key Takeaways
- **Lowest rates**: Hungary (9%), Bulgaria (10%), Ireland (12.5%); Cyprus moved to **15%** in 2026.
- **Estonian (cash-flow) model**: Estonia, Latvia; Poland and Lithuania offer optional/partial variants.
- **Highest effective rates**: Germany (~29.9%), Italy (~27.9%), France (25%), Luxembourg (~23.9%).
- **SME / low brackets**: Belgium (20% on first €100K), Netherlands (19% on first €200K), France (15% on first €42.5K), Portugal/Lithuania (15%/7%), Poland (9%), Slovakia (10%).
- **Pillar Two QDMTT** (15% floor) now bites for groups ≥ €750M regardless of headline rate — see §5; it neutralizes much of the low-rate advantage for large MNEs.

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