The table, EU-27 plus UK, Switzerland, Norway
| Country | Standard rate 2026 | Notes & SME brackets |
|---|---|---|
| Netherlands | 19% / 25.8% | 19% on the first €200,000 of profit, plus the 9% innovation box for qualifying intellectual property |
| Hungary | 9% | With local business tax of ≈2%, the effective rate is ≈11% |
| Bulgaria | 10% | Flat |
| Ireland | 12.5% | Trading income; 15% for large groups under Pillar Two |
| Cyprus | 15% | Raised from 12.5% on 1 January 2026 (Pillar Two alignment); 5% withholding tax on dividends to related companies in low-tax countries, 17% to countries on the EU blacklist |
| Lithuania | 17% | Raised from 16% on 1 January 2026 |
| Romania | 16% | Turnover-tax elements for large companies |
| Croatia | 18% | 10% below revenue threshold |
| Poland | 19% | 9% for small taxpayers; with the “Estonian CIT” option, tax is paid only on distribution |
| Czechia | 21% | Raised from 19% in 2024 |
| Estonia | 0% / 22% | 0% on profit kept in the company; 22% on distribution (Netherlands vs Estonia) |
| Latvia | 0% / 20% | Estonian model: tax on distribution |
| Slovakia | 10% / 21% / 24% | Banded by taxable revenue: 10% to €100,000, 21% to €5 million, 24% above (top band added from 2025) |
| Slovenia | 22% | Includes temporary surcharge |
| Greece | 22% | |
| Denmark | 22% | |
| Finland | 20% | |
| Sweden | 20.6% | |
| Austria | 23% | Lowered stepwise to 23% since 2024 |
| Belgium | 25% | 20% on the first €100,000 for qualifying SMEs |
| Spain | 25% | Reduced rates for new and small companies |
| Portugal | 19% | Lowered in 2026. By law, the rate is lowered to 17% by 2028. 15% on the first €50,000 for SMEs. With municipal and state surcharges, the effective rate is higher (Netherlands vs Portugal) |
| France | 25% | A social contribution of 3.3% applies where corporate tax exceeds €763,000 (≈25.8% combined). For the largest groups, the rate was temporarily raised to ≈36% by an exceptional contribution |
| Germany | ≈30.1% | 15.825% federal + trade tax; varies by municipality (setting up a Dutch BV) |
| Italy | ≈27.9% | 24% IRES + regional IRAP ≈3.9% |
| Luxembourg | 23.87% | Lowered from 24.9%; combined rate including municipal tax, Luxembourg City |
| Malta | 35% | With shareholder refunds, the effective rate is much lower. Under Pillar Two, these refunds are checked closely |
| United Kingdom | 25% | 19% small profits rate to £50,000 |
| Switzerland | ≈12–21% | Combined federal + cantonal; Zug and central cantons at the low end |
| Norway | 22% |
How to read this table
Three corrections apply to the headline rates in the table. Pillar Two. Most groups with €750 million or more in revenue pay a 15% minimum in each country. The headline rates of 9–12.5% apply only to smaller companies. Local taxes. German trade tax, Italian IRAP, Hungarian local tax and Portuguese surcharges are paid in addition to the headline rate. Withholding and personal tax. Corporate tax is one part of the total tax. There is also withholding tax when the company pays out profit, and personal tax where you receive the money. For these taxes, treaty networks and holding structures are more important than headline rates. See where to incorporate for how to weigh all of this.
Frequently asked questions
Which EU country has the lowest corporate tax rate in 2026?
Hungary, at 9%. With local business tax of about 2%, the effective rate is about 11%. Groups with €750 million or more in revenue pay the 15% Pillar Two minimum. Bulgaria (10%) and Ireland (12.5%) follow. Cyprus raised its rate to 15% on 1 January 2026. What an international business keeps also depends on tax treaties, withholding tax when profit is paid out, infrastructure, banking and administration in English. When you count all of this, you often keep more with a Dutch company, which pays 19% on the first €200,000 of profit.
What changed in European corporate tax rates for 2026?
Lithuania raised its rate from 16% to 17%, and Cyprus from 12.5% to 15%. The Slovak 24% top band and the Luxembourg cut to 23.87% already applied from 2025. For the largest groups in France, the effective rate was temporarily raised to about 36% by an exceptional contribution. The amended tax treaty between the Netherlands and Germany also entered into force.
Is the Dutch 19% rate competitive?
Yes. On the first €200,000 of profit, 19% is lower than the rate in most of Western Europe. Germany is near 30%, France is at 25.8%, and Belgium and Spain are at 25%. The Netherlands also has the participation exemption, about one hundred tax treaties and the 9% innovation box. With these rules, you often keep more of your profit.
Do low rates survive the 15% global minimum?
Yes, for companies with less than €750 million in revenue. Pillar Two applies only to large multinational groups. Small and medium-sized companies (SMEs) in Hungary, Ireland or the Netherlands keep their national rates in full.
The written structure analysis.
You get a written comparison based on your numbers and your markets, with sources and the date of the last check.
Start your Dutch BV →Last verified: 13 August 2026 · Holdwise, Dutch structuring advisory for international founders.