Tax rates 2026 to 2027

Corporate tax rates in Europe 2027: what changes, country by country

Finland and Portugal go to 18%, Luxembourg cuts one point, Germany keeps 15% until the end of 2027 and then steps down to 10% by 2032, and the Netherlands keeps 19% and 25.8%. The 2026 and 2027 rates of all 27 EU countries plus the United Kingdom, Switzerland and Norway in one table, with the status of each change.

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Home›EU market entry›Corporate tax rates in Europe 2027

By Robert Jeffrey, Holdwise B.V., Hoofddorp. Published and checked against the official sources on 20 October 2026.

Summary

Four countries lower their corporate tax rate for 2027. Finland proposes 18% in place of 20% (government proposal HE 151/2026). Portugal takes the second step of its plan: 19% in 2026, 18% in 2027 and 17% from 2028. Luxembourg cuts its national rate by one point to 15%, and to 13% for smaller companies (budget 2027, still a proposal). Germany keeps its 15% corporate tax until the end of 2027 and lowers it by one point a year from 2028, to 10% in 2032.

The Netherlands keeps 19% on the first €200,000 of profit and 25.8% above that. The Tax Plan 2027 changes the rules around the rate: the maximum of the innovation box flat scheme for smaller companies goes up to €100,000, and expected currency results on participations become taxable. Cyprus has been at 15% since 2026, Ireland stays at 12.5%, and the United Kingdom presents its Budget on 28 October 2026, after this check.

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What changes in 2027, in one view

Finland: 20% to 18% for the 2027 tax year (government proposal HE 151/2026 of 17 September 2026). The withholding tax on dividends, interest and royalties to foreign companies also goes to 18%, and losses become deductible for 25 years in place of 10. Status: proposal.
Portugal: 19% to 18%, with 17% from 2028 (government decision of 18 July 2025). SMEs and small midcaps pay 15% on the first €50,000 since 2026. Status: law for 2026; the law number of the next steps is still to be confirmed.
Luxembourg: one point lower. The budget 2027 of 7 October 2026 takes the national rate from 16% to 15%, and from 14% to 13% for SMEs. Status: proposal.
Germany: 15% until the end of 2027, then 14% in 2028 down to 10% in 2032 (growth booster law, Bundestag 26 June 2025, Bundesrat 11 July 2025). With trade tax and the solidarity surcharge, the total burden goes from just under 30% to just under 25% in 2032. Status: law.
France: 25% stays. The finance bill 2027 of 1 October 2026 extends part of the exceptional contribution on groups with a turnover from €1.5 billion for one more year, at lower rates still to be set. Status: proposal.
Netherlands: 19% and 25.8% stay (Tax Plan 2027 of 15 September 2026, votes before the end of 2026). Status: law for the rates, proposal for the changes around them.
Ireland 12.5%, the United Kingdom 25%, Austria 23% and Lithuania 17% stay. The United Kingdom presents its Budget on 28 October 2026; Lithuania widens, from 1 January 2027, the exemption for gains on interests in venture capital entities.

The table: 2026 and 2027 rates for 30 countries

Country	Rate 2026	Rate 2027	Status	Notes and SME brackets
Netherlands	19% / 25.8%	19% / 25.8%	Law. The Tax Plan 2027 leaves the rates as they are; an opposition amendment for 0.1 point more on the top rate is pending. Votes in both houses before the end of 2026	19% on the first €200,000 of profit. Innovation box 9%; the threshold of its flat scheme for smaller companies rises to €100,000 per 2027 (proposal)
Hungary	9%	9%	2027: unchanged on the official pages checked (see the note under the table)	Local business tax of about 2% on top; large groups pay the 15% minimum
Bulgaria	10%	10%	2027: unchanged on the official pages checked (see the note under the table)	Flat rate
Ireland	12.5%	12.5%	Budget 2027 of 6 October 2026 keeps 12.5%; the Finance Bill is pending (proposal)	Trading income; 15% for large groups under Pillar Two
Cyprus	15%	15%	Law: raised from 12.5% for the 2026 tax year (tax reform 2026)	5% withholding tax on dividends to related companies in low-tax countries, 17% to countries on the EU blacklist (Netherlands vs Cyprus)
Lithuania	17%	17%	Law XV-488 of 16 October 2025: from 1 January 2027 a wider exemption for gains on interests in venture capital entities. The rate itself: unchanged on the official pages checked	Raised from 16% on 1 January 2026
Romania	16%	16%	2027: unchanged on the official pages checked (see the note under the table)	Turnover-tax elements for large companies
Croatia	18%	18%	2027: unchanged on the official pages checked (see the note under the table)	10% below the revenue threshold
Poland	19%	19%	2027: unchanged on the official pages checked (see the note under the table)	9% for small taxpayers; the “Estonian CIT” option taxes profit on distribution only
Czechia	21%	21%	2027: unchanged on the official pages checked (see the note under the table)	Raised from 19% in 2024
Estonia	0% / 22%	0% / 22%	In force: 22/78 on distributed profit on the official rates page. A reported rise to 24% is absent from that page and unconfirmed	0% on profit kept in the company, 22% on distribution (Netherlands vs Estonia)
Latvia	0% / 20%	0% / 20%	2027: unchanged on the official pages checked (see the note under the table)	Tax on distribution, the Estonian model
Slovakia	10% / 21% / 24%	10% / 21% / 24%	2027: unchanged on the official pages checked (see the note under the table)	Banded by taxable revenue: 10% to €100,000, 21% to €5 million, 24% above
Slovenia	22%	22%	2027: unchanged on the official pages checked (see the note under the table)	Includes a temporary surcharge
Greece	22%	22%	2027: unchanged on the official pages checked (see the note under the table)
Denmark	22%	22%	2027: unchanged on the official pages checked (see the note under the table)
Finland	20%	18%	Proposal: government proposal HE 151/2026 of 17 September 2026, for the 2027 tax year	Withholding tax on dividends, interest and royalties to foreign companies also 18%; losses deductible for 25 years in place of 10 (losses from 2026)
Sweden	20.6%	20.6%	2027: unchanged on the official pages checked (see the note under the table)
Austria	23%	23%	Law: the budget laws for 2027 and 2028 (Budgetbegleitgesetz, budget of 10 July 2026) keep 23%	Lowered stepwise to 23% since 2024
Belgium	25%	25%	2027: unchanged on the official pages checked (see the note under the table)	20% on the first €100,000 for qualifying SMEs
Spain	25%	25%	2027: unchanged on the official pages checked (see the note under the table)	Reduced rates for new and small companies
Portugal	19%	18%	Law: 19% in 2026, 18% in 2027, 17% from 2028 (government decision of 18 July 2025); the law number of the 2027 step is still to be confirmed	SMEs and small midcaps 15% on the first €50,000; municipal and state surcharges on top (Netherlands vs Portugal)
France	25%	25%	Finance bill 2027, filed on 1 October 2026 (proposal): the rate stays 25%; the exceptional contribution for groups with a turnover from €1.5 billion is partially extended for one year at lower rates (figures still open)	Social contribution of 3.3% where corporate tax exceeds €763,000, about 25.8% combined
Germany	about 30% combined	about 30% combined; corporate tax 15% until the end of 2027	Law (Bundestag 26 June 2025, Bundesrat 11 July 2025): 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, 10% in 2032	Corporate tax plus solidarity surcharge plus trade tax, which varies by municipality; the total burden goes from just under 30% to just under 25% in 2032
Italy	about 27.9%	about 27.9%	2027: unchanged on the official pages checked (see the note under the table)	24% IRES plus regional IRAP of about 3.9%
Luxembourg	23.87% combined (national rate 16%, 14% for SMEs)	one point lower: national rate 15%, 13% for SMEs	Budget 2027 of 7 October 2026 (proposal); the law sets the effective date	The combined rate includes the municipal business tax of Luxembourg City; the investment tax credit for digital and energy rises from 18% to 21% (Netherlands vs Luxembourg)
Malta	35%	35%	2027: unchanged on the official pages checked (see the note under the table)	Refunds to shareholders lower the effective rate; Pillar Two checks these refunds closely
United Kingdom	25%	25%	Law (Finance Act 2026). The Budget of 28 October 2026 comes after this check	19% small profits rate up to £50,000
Switzerland	about 12% to 21% combined	about 12% to 21% combined	2027: unchanged on the official pages checked (see the note under the table)	Federal plus cantonal and communal tax; Zug and the central cantons at the low end
Norway	22%	22%	2027: unchanged on the official pages checked (see the note under the table)

Note on the status column. The 2027 check of 20 October 2026 covered the official pages listed in the sources below: the budget pages and tax authority pages of the countries with a change or a confirmed rate for 2027. For the other countries, the 2026 rate was verified on 13 August 2026 against OECD corporate tax statistics and national legislation, and it is repeated for 2027. A budget law adopted in one of those countries after this date can still change a 2027 rate; ask before you decide on that country. Standard statutory rates; local taxes are in the notes.

How to read the table

Pillar Two. Groups with a revenue of €750 million or more pay a minimum of 15% in each country. The headline rates of 9% to 12.5% apply in full only to smaller companies. The Netherlands adds four safe harbour rules from the OECD agreement of 5 January 2026 to its minimum tax act, with effect from 1 January 2026: a simplified effective tax rate test on the basis of the annual accounts, and zero top-up tax where the parent country has an equivalent minimum tax system (proposal, vote before the end of 2026).

Local taxes. German trade tax, Italian IRAP, Hungarian local business tax, Luxembourg municipal tax and Portuguese surcharges come on top of the headline rate. The German and Luxembourg rows in the table show the combined figure for that reason.

Withholding tax and personal tax. Corporate tax is one link in the chain. Profit is taxed again when the company pays it out (withholding tax) and when you receive it (personal income tax). For those two links, the tax treaty network and the holding structure weigh more than the headline rate. Where to incorporate shows how to weigh all of this, and the reality check on the lowest rates counts the whole chain for the low-rate countries.

Law or proposal. Finland, Luxembourg, France and the Netherlands vote on their 2027 measures in November and December 2026. The United Kingdom presents its Budget on 28 October 2026. This page is updated after each vote.

The Dutch position in 2027: the rate stays, the rules around it change

The Dutch corporate tax rate has been 19% on the first €200,000 of profit and 25.8% above that since 2023, and the Tax Plan 2027 keeps it there. A BV with €200,000 of profit pays €38,000 in 2027, the same as in 2026. The full set of Dutch rates is on Dutch tax rates 2027, and the proposals that still need a vote are on tax changes in the Netherlands in 2027. Four rules around the rate matter for an international business:

The participation exemption. A Dutch holding receives dividends and capital gains from qualifying subsidiaries free of corporate tax. Per 2027, expected (priced-in) currency results on a participation become taxable; only unexpected currency results stay exempt (proposal). The exemption itself stays as it is. See the participation exemption explained.
The innovation box at 9%. Profit from qualifying innovation is taxed at 9%. The flat scheme for smaller companies, which spares them the full allocation of profit, rises from a threshold of €25,000 to €100,000 per 2027 (proposal). See the innovation box.
Withholding tax and treaties. Dividend tax is 15%, lower or zero under most treaties. Interest and royalties go out at 0%, except to affiliated companies in listed low-tax jurisdictions, where a conditional withholding tax at 25.8% applies. The Netherlands has about 100 tax treaties. See withholding tax in the Netherlands.
A step-up for companies that transfer their seat to the Netherlands. Per 2027, the acquisition price of the shares held by a foreign substantial shareholder is set at the market value at the time of the transfer, so the Netherlands taxes only the value growth after the relocation (proposal in the Other Tax Measures 2027).

Compared with the rates above, 19% on the first €200,000 is lower than the rate in most of Western Europe, and the combination with the participation exemption, the treaties and 0% on interest and royalties is what a holding company uses. The set-up of the company is described on company formation in the Netherlands.

When the rate matters less than substance

A rate applies to a company that is tax resident in that country, and tax residence follows the place where the company is managed: where the directors decide, where the staff work and where the books are kept. A company registered in a 9% country but managed from the Netherlands is a Dutch taxpayer in the eyes of the Dutch tax administration, and the same rule applies in reverse. The register says little; the facts decide. See substance requirements for a Dutch BV.

Treaties apply the same test. A reduced withholding rate under a treaty asks for a real company on the other side: an office, people and decisions. That is why the Dutch holding structure is built with substance from the start: the board meets in the Netherlands and the holding has its own tasks.

Three situations where the rate decides less than the structure:

A German founder weighing a GmbH against a BV. The German cut starts in 2028 and takes until 2032. A company managed from Germany is taxed in Germany, whatever its legal form; a European holding managed from the Netherlands pays the Dutch rate.
A group with subsidiaries in several EU countries. Each subsidiary pays its own rate. What reaches the owner depends on the withholding tax of each country and the treaty with the holding country.
A founder from outside the EU who wants one European company. The treaty with your home country, the withholding tax when you pay yourself and the bank that accepts the company decide what you keep. Where to incorporate walks through that choice.

What to do now, in order

Map where the decisions are taken. That country taxes the profit. Plan the board, the staff and the office before you compare rates.
Count the whole chain for your country pair. Corporate tax, local tax, withholding tax on the payout, the treaty and the tax on your own income. Use the table for the first link and the treaty network for the second.
Watch the votes. Finland, Luxembourg, France and the Netherlands vote in November and December 2026; the United Kingdom presents its Budget on 28 October 2026. Rates in the table marked as proposals can still change.
Choose the structure, then the country. A holding above operating companies, with the participation exemption and the treaties, usually weighs more than one point of corporate tax. The holding structure page shows the set-up.
Ask for a written answer before you sign. Your numbers, your countries and the current status of each measure, with the sources and the date of the check. See written advice.

Questions founders ask

Which EU country has the lowest corporate tax rate in 2027? +

Hungary, at 9%, with a local business tax of about 2% on top. Bulgaria follows at 10% and Ireland at 12.5% on trading income. Cyprus has been at 15% since the 2026 tax year. Finland and Portugal join the group under 20% in 2027, both at 18%. Groups with a revenue of €750 million or more pay the 15% minimum in every country. What you keep also depends on withholding tax, the tax treaty with your home country and the tax on your own income. With the whole chain counted, a Dutch BV at 19% on the first €200,000 of profit often leaves you more.

What changes in European corporate tax rates in 2027? +

Finland proposes 18% in place of 20% for the 2027 tax year. Portugal lowers its rate from 19% to 18%, with 17% from 2028. Luxembourg proposes one point less: 15% for large companies and 13% for smaller ones. Germany keeps 15% through 2027 and lowers it by one point a year from 2028 to 10% in 2032. France keeps 25% and extends part of its surcharge on the largest groups for one more year. The Netherlands keeps 19% and 25.8%.

Does the Netherlands change its corporate tax rate in 2027? +

The rates stay at 19% on the first €200,000 of profit and 25.8% above that, as they have been since 2023. The Tax Plan 2027 changes the rules around the rate: the maximum of the innovation box flat scheme for smaller companies rises from €25,000 to €100,000, and expected currency results on participations become taxable. Both houses of parliament vote on the plan before the end of 2026.

Is the German cut to 10% a reason to choose a GmbH over a Dutch BV? +

The German corporate tax stays at 15% until the end of 2027. The cut starts in 2028 with 14% and reaches 10% in 2032. With the trade tax and the solidarity surcharge, the total burden goes from just under 30% to just under 25% in 2032. A Dutch BV pays 19% on the first €200,000 today and 25.8% above that. For a company managed from Germany, the GmbH is the natural form; for a European holding or a company managed from the Netherlands, the BV is. The place of management decides, before the rate.

Do low rates survive the 15% global minimum tax? +

Yes, for companies in groups with a revenue under €750 million. Pillar Two applies only to large multinational groups. Those groups pay a 15% minimum in each country, also in Hungary, Ireland or Cyprus. The Netherlands adds four safe harbour rules from the OECD agreement of 5 January 2026 to its minimum tax act, with effect from 1 January 2026 (proposal, vote before the end of 2026).

Sources

Netherlands, Tax Administration, corporate income tax rates 2023 to 2026: belastingdienst.nl; Government of the Netherlands, Tax Plan 2027, summary of the main measures (15 September 2026): rijksoverheid.nl; Other Tax Measures 2027 (bill): rijksoverheid.nl; Minimum Tax Act safe harbour rules (bill): rijksoverheid.nl
Finland, Tax Administration, government proposal to lower the corporate income tax rate to 18% (17 September 2026): vero.fi
Portugal, Government, new IRC reduction until 2028 (18 July 2025): portugal.gov.pt
Luxembourg, Government, budget 2027 (7 October 2026): gouvernement.lu
Germany, Federal Ministry of Finance, growth booster: bundesfinanzministerium.de
France, Ministry of the Economy, PLF 2027, the main measures: economie.gouv.fr
Ireland, Department of Finance, Budget 2027 taxation measures (6 October 2026): gov.ie
United Kingdom, Finance Act 2026: legislation.gov.uk; Chancellor’s letter on the Budget date of 28 October 2026: gov.uk
Austria, Federal Ministry of Finance, Budgetbegleitgesetz 2027 und 2028: bmf.gv.at
Cyprus, Tax Department, tax reform 2026: gov.cy
Lithuania, State Tax Inspectorate, corporate income tax changes from 2027: vmi.lt
Estonia, Tax and Customs Board, income tax rates: emta.ee
European Commission, Pillar Two global minimum tax directive, FAQ (29 May 2026): taxation-customs.ec.europa.eu
The 2026 column for the other countries: OECD Corporate Tax Statistics (November 2025) and national legislation, verified on 13 August 2026.

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