Corporate tax rates in 2026
| Country | Standard rate 2026 | What is behind it |
|---|---|---|
| Hungary | 9% | A local business tax (HIPA) of up to 2% comes on top. Budapest charges the full 2%, so the total is close to 11%. |
| Bulgaria | 10% | A 5% dividend tax applies to the profit after corporate tax, so the total is 14.5%. Member of the eurozone since 2026. |
| Ireland | 12.5% | On trading income; passive income is taxed at 25%. |
| Cyprus | 15% | Raised from 12.5% in 2026 to align with the global minimum tax. |
| Romania | 16% | A micro-company regime applies below €100,000 revenue, with conditions attached. |
| Lithuania | 17% | Raised from 16% in 2026. A 7% small company rate applies up to €300,000 revenue and 10 employees. |
| Croatia | 18% | A reduced rate applies to small taxpayers. |
| Netherlands | 19% / 25.8% | 19% up to €200,000 profit per company, 25.8% above. |
| Estonia | 0% / 22% | Retained profit stays untaxed; tax of 22% (22/78) applies on distribution. |
| Latvia | 0% / 20% | Same system as Estonia. Since 2026 there is also a new 15%+6% option for shareholders who are private persons. |
| Malta | 35% → 5% effective | Under the full imputation system, non-resident shareholders get most of the tax refunded. Strict conditions apply. |
Two rates that changed this year
Cyprus is 15% now. Cyprus raised its standard corporate tax rate from 12.5% to 15% in 2026. The new rate is the same as the global minimum tax. Rankings written in 2025 still show the old rate.
Lithuania is 17% now. The rate went up from 16% this year. Very small companies can use a reduced rate of 7%, up from 6%. For larger companies, the Lithuanian rate is average.
What you pay besides the headline rate
Check these three points when you compare rates:
- The dividend step. Your company pays corporate tax first. You pay tax again when you take the money out. In Bulgaria, the company pays 10%. The 5% dividend tax applies to the 90% that is left. Together that is 14.5%. For each country, apply the tax on distributions to the profit after corporate tax. You find this calculation for each type of founder in the total-tax comparison.
- The global minimum. Most groups with revenue of €750 million or more pay an effective rate of at least 15% in each country where they make a profit. For these groups, Hungary's 9% and Ireland's 12.5% are topped up. Founders and small and medium-sized companies (SMEs) stay under this limit and pay the normal rates.
- Local taxes. Hungary has a local business tax (HIPA). Municipalities charge it on revenue, on top of the 9% on profit.
Where the Netherlands ranks
The Dutch rate is 19% up to €200,000 per company. This is in the middle of the table, higher than in the Balkans and lower than in Germany and France. The Netherlands scores well on the rules around the rate. With the participation exemption, the operating company can pay its profit to the holding at 0%. Dividends paid to a parent company in the EU are exempt from Dutch dividend withholding tax. Banks and payment providers accept Dutch companies as a routine case, and they see the Netherlands as a reliable country in their due diligence. You can read how the countries compare on reputation and banking in the most reputable country to incorporate in Europe.
You can set up a Dutch company from abroad, with the tax registrations included. See setting up a BV in the Netherlands from abroad.
A group that chooses a country for its European company compares four things. These are the tax rate, substance, running costs and the time to set up. You can see the Netherlands, Ireland and Germany compared on these four points in setting up a Dutch subsidiary.
Are the Dutch terms new to you? Start with company formation in the Netherlands for non-residents. There you can read about the legal forms, the documents, the costs and the comparison with Germany.
Choosing by profile
The lowest rate suits one type of founder. This founder lives in the country, uses a local bank and sells to local customers. For other founders, the rate is one factor among several. See the full five-country decision model to find the country that suits your situation. Founders ask most often about three countries. You can compare the Netherlands with Bulgaria, Cyprus and Malta.