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 — a genuine SME bracket, plus the 9% innovation box for qualifying IP |
| Hungary | 9% | Plus local business tax of ≈2%: effective ≈11% |
| Bulgaria | 10% | Flat |
| Ireland | 12,5% | Trading income; 15% for large groups under Pillar Two |
| Cyprus | 15% | Raised from 12,5% per 1 January 2026 (Pillar Two alignment); 5% withholding on dividends to listed low-tax destinations |
| Lithuania | 17% | Raised from 16% per 1 January 2026 |
| Romania | 16% | Turnover-tax elements for large companies |
| Croatia | 18% | 10% below revenue threshold |
| Poland | 19% | 9% for small taxpayers; “Estonian CIT” option defers tax to distribution |
| Czechia | 21% | Raised from 19% in 2024 |
| Estonia | 0% / 22% | 0% while profit stays in the company; 22% on distribution (the comparison) |
| 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 per 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 per 2026 on a legislated path to 17% by 2028; 15% on the first €50,000 for SMEs; municipal and state surcharges raise the effective rate (the pair) |
| France | 25% | Plus 3,3% social contribution where corporate tax exceeds €763,000 (≈25,8% combined); an exceptional contribution temporarily lifted the largest groups to ≈36% |
| Germany | ≈29,9% | 15,825% federal + trade tax; varies by municipality (the NL–DE pair) |
| Italy | ≈27,9% | 24% IRES + regional IRAP ≈3,9% |
| Luxembourg | 23,87% | Lowered from 24,9%; combined incl. municipal, Luxembourg City |
| Malta | 35% | Shareholder refunds bring effective rates far lower — the mechanics Pillar Two scrutinises |
| 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 honestly
Three corrections separate the table from reality. Pillar Two: groups above €750 million revenue pay a 15% minimum everywhere — the 9–12,5% headlines survive only for smaller companies. Local layers: German trade tax, Italian IRAP, Hungarian local tax and Portuguese surcharges sit on top of the headline. The chain: corporate tax is one link — withholding on the way out and personal tax on arrival complete the price, which is where treaty networks and holding structures decide more than headline rates do. The framework for weighing all of it: where to incorporate.
Frequently asked questions
Which EU country has the lowest corporate tax rate in 2026?
Hungary, at 9% — though local business tax of roughly 2% brings the effective rate to about 11%, and groups above €750 million revenue pay the 15% Pillar Two minimum. Bulgaria (10%) and Ireland (12,5%) follow; Cyprus moved to 15% on 1 January 2026. The rate is one axis: treaty depth, withholding on the way out, infrastructure, banking and English-language administration decide what an international business actually keeps — which is where the Dutch 19% chain frequently wins the sum.
What changed in European corporate tax rates for 2026?
Lithuania raised its rate from 16% to 17% and Slovakia added a 24% top band above €5 million; Luxembourg cut from 24,9% to 23,87% and Iceland from 21% to 20%. France's exceptional contribution temporarily lifted the effective rate to roughly 36% for the largest groups, and the amended Netherlands–Germany treaty entered into force.
Is the Dutch 19% rate competitive?
On the first €200,000 of profit, 19% beats most of Western Europe — Germany sits near 30%, France at 25,8%, Belgium and Spain at 25%. Combined with the participation exemption, roughly one hundred treaties and the 9% innovation box, the chain is stronger than the headline.
Do low rates survive the 15% global minimum?
For companies below €750 million in revenue, yes — Pillar Two targets large multinationals. SMEs in Hungary, Ireland or the Netherlands keep their national rates in full.
The written structure analysis.
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Start with the BV route →Last verified: 13 August 2026 · Holdwise — Dutch structuring advisory for international founders.