The low-tax league table, 2026
| Country | Headline | What is on top |
|---|---|---|
| Hungary | 9% | Local business tax of up to 2%, charged on revenue minus some costs, so usually above 11% in total; administration in Hungarian |
| Bulgaria | 10% | Flat rate; practical hurdles are banking, the language and a smaller treaty network |
| Ireland | 12.5% | Trading income only; 15% for large groups; Dublin cost levels |
| Cyprus | 15% | Raised from 12.5% on 1 January 2026; withholding tax on dividends to related companies in low-tax countries cut from 17% to 5% |
| Estonia / Latvia | 0% until distribution | Then 22% (Estonia) or 20% (Latvia) when you pay out profit; the 0% applies until then |
| Netherlands | 19% | On the first €200,000, with advantages on the full chain |
You can find the complete table for thirty countries in corporate tax rates in Europe 2026.
Four corrections to the headline rates
Local surtaxes apply in Hungary, Germany, Italy and Portugal. In Germany the local trade tax adds at least 7 points, and 14 points or more in most large cities. Under Pillar Two, groups with €750 million or more revenue pay at least 15% in the countries that apply these rules. Withholding tax applies when your company pays out profit abroad. A low-rate country with few tax treaties then taxes your dividend at the border. Personal tax is the last step. The profit is only yours after you pay personal tax. With a holding structure and good timing, you influence this final percentage.
The chain, calculated once
Take €200,000 of profit in a Dutch BV. After 19% corporate tax, €162,000 is left. Under the participation exemption, the BV can pay this amount to the holding free of tax. The holding can distribute it to you later at box 2 rates, at moments you choose. The holding can also reinvest it for years. In a country with a 9% headline rate and extra taxes at every border, you often keep less of the same profit. You can compare countries in where to incorporate. For tax on payments from the Netherlands, see Dutch withholding, explained.
Frequently asked questions
Which country has the lowest corporate tax in Europe in 2026?
Hungary, with a headline rate of 9%. A local business tax of up to 2% comes on top. It is charged on revenue minus some costs, so the total tax on profit is usually above 11%. Bulgaria follows at 10% and Ireland at 12.5%. Cyprus raised its rate to 15% on 1 January 2026. Groups with EUR 750 million or more revenue pay the 15% Pillar Two minimum in the countries that apply these rules.
Is a 9% country automatically cheaper than a 19% country?
Only for profit that stays in the company. When you add withholding tax on distributions, the effect of tax treaties and personal tax for the owner, the ranking changes. With the Dutch 19% first bracket, the participation exemption and about 100 tax treaties, the owner often keeps more in the Netherlands.
Does Pillar Two end low-tax Europe?
For large multinationals, largely yes. They pay at least 15% in the countries that apply these rules. For small and medium-sized companies (SMEs) below the EUR 750 million threshold, the national rates still apply in full. For founders, the national rates therefore remain the rates to compare.
Where does the Netherlands rank in the low-tax table?
The Dutch rate is 19% on the first EUR 200,000 of profit. With that rate the Netherlands is in the middle of the table. Its main rate of 25.8% on profit above EUR 200,000 is one of the higher rates in Europe. On the full chain, it is near the top. The participation exemption applies, and qualifying distributions within the EU have 0% withholding tax. Under tax treaties with roughly one hundred countries, withholding tax is capped. There is also a 9% innovation box for qualifying intellectual property (IP).
The written structure analysis.
You get a written comparison based on your numbers and your markets, with sources and a verification date.
Start with a Dutch BV →Last verified: 13 August 2026 · Holdwise, Dutch structuring advisory for international founders.