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Top statutory personal income tax rates in Europe 2021

Top Personal Income Tax Rates in Europe, 2021

Most countries’ personal income taxes have a progressive structure, meaning that the tax rate paid by individuals increases as they earn higher wages. The highest tax rate individuals pay differs significantly across Europe, with Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) having the highest top statutory personal income tax rates among European OECD countries.

3 min read
Estate taxes in Europe, Estate tax inheritance tax Gift taxes in Europe EU European Union 2021

Estate, Inheritance, and Gift Taxes in Europe, 2021

Estate tax is levied on the property of the deceased and is paid by the estate itself. Inheritance taxes, in contrast, are only levied on the value of assets transferred and are paid by the heirs. Gift taxes are levied when property is transferred by a living individual. The majority of European countries covered in today’s map currently levy estate, inheritance, or gift taxes.

3 min read
Inventory Valuation Method in Europe 2021, First-in, First-out (FIFO); Last-in, First-out (LIFO);

Inventory Valuation in Europe

The method by which a country allows businesses to account for inventories can significantly impact a business’s taxable income. When prices are rising, as is usually the case due to factors like inflation, LIFO is the preferred method because it allows inventory costs to be closer to true costs at the time of sale.

2 min read
2021 corporate tax rates in Europe, 2021 corporate income tax rates in Europe, 2021 corporate taxes in Europe, 2021 corporate tax rates in Europe

Corporate Income Tax Rates in Europe, 2021

On average, European OECD countries currently levy a corporate income tax rate of 21.7 percent. This is below the worldwide average which, measured across 177 jurisdictions, was 23.9 percent in 2020.

2 min read
EU business tax reform, European Union business tax reform, European Commission EU business taxation framework

The EU Determined to Reform the Business Tax

The EU recently launched a consultation to reform the business tax system, which will outline the priorities for corporate taxation over the coming years to meet the needs of a globalized economy that struggles to recover from the consequences of the COVID-19 crisis. It will also set EU actions regarding the ongoing international discussion on the taxation of the digital economy and a global minimum tax.

3 min read
Bank Taxes in Europe 2021 Bank Tax, financial stability contributions, 2008 financial crisis tax

Bank Taxes in Europe

Today’s map shows which European OECD countries implemented financial stability contributions (FSCs), commonly referred to as “bank taxes.”

2 min read
Property taxes in Europe 2021 reliance on property tax revenue in Europe, 2021 property tax rates in Europe

Reliance on Property Taxes in Europe

Property taxes are levied on the assets of an individual or business. There are different types of property taxes, with recurrent taxes on immovable property (such as property taxes on land and buildings) the only ones levied by all countries covered. Other types of property taxes include estate, inheritance, and gift taxes, net wealth taxes, and taxes on financial and capital transactions.

1 min read
Consumption taxes in Europe, reliance on consumption taxes in Europe, reliance on consumption tax revenue in Europe, taxes on goods and services in Europe

Reliance on Consumption Taxes in Europe

Hungary relies the most on consumption tax revenue, at 45.3 percent of total tax revenue, followed by Latvia and Estonia at 45.1 percent and 42.4 percent, respectively.

2 min read
Reliance on individual income tax revenue in Europe 2019

Reliance on Individual Income Tax Revenue in Europe

Denmark relies the most on revenue from individual income taxes, at 52.4 percent of total tax revenue, followed by Iceland and Ireland at 40.8 percent and 31.5 percent, respectively.

1 min read
Reliance on corporate tax revenue in Europe 2021 reliance on corporate income taxes in Europe how much do countries in europe rely on corporate income taxes? revenue from corporate income

Reliance on Corporate Income Tax Revenue in Europe

Despite declining corporate income tax rates over the last 30 years in Europe (and other parts of the world), average revenue from corporate income taxes as a share of total tax revenue has not changed significantly compared to 1990.

1 min read
EU tax research The European Commission and the Taxation of the Digital Economy EU digital levy

The European Commission and the Taxation of the Digital Economy

The consultation on the EU’s digital levy provides an opportunity for policymakers and taxpayers to reflect on the underlying issues of digital taxation and potential consequences from a digital levy. Unless the EU digital levy is designed with an OECD agreement in mind, it is likely to cause more uncertainty in cross-border tax policy.

12 min read
2021 financial transaction taxes in Europe, 2021 financial transaction tax Europe. European OECD countries impose a type of FTT.

Financial Transaction Taxes in Europe

Belgium, Finland, France, Ireland, Italy, Poland, Spain, Switzerland, Turkey, and the United Kingdom currently levy a type of financial transaction tax

2 min read
Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in Europe. Actionable VAT Policy Gap in Europe

Actionable VAT Policy Gap in Europe, 2021

Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in Europe. However, European countries differ significantly in how efficiently they raise VAT revenues. One way to measure a country’s VAT efficiency is the VAT Gap.

4 min read
R&D tax incentives, Research and development tax incentives, R&D tax subsidies and R&D tax subsidy policies in Europe

Tax Subsidies for R&D Expenditures in Europe, 2021

Many countries incentivize business investment in research and development (R&D), intending to foster innovation. A common approach is to provide direct government funding for R&D activity. However, a significant number of jurisdictions also offer R&D tax incentives.

4 min read
Wealth taxes in Europe, 2020. European countries with a wealth tax, net wealth tax, wealth tax on selected assets

Wealth Taxes in Europe, 2020

Net wealth taxes are recurrent taxes on an individual’s wealth, net of debt. The concept of a net wealth tax is similar to a real property tax. But instead of only taxing real estate, it covers all wealth an individual owns. As today’s map shows, only three European countries covered levy a net wealth tax, namely Norway, Spain, and Switzerland. France and Italy levy wealth taxes on selected assets but not on an individual’s net wealth per se.

3 min read
European tax treaties, European tax treaty network

Tax Treaty Network of European Countries

Tax treaties usually provide mechanisms to eliminate double taxation and can provide certainty and stability for taxpayers and encourage foreign investment and trade. A broad network of tax treaties contributes to the competitiveness of an economy.

1 min read
real property taxes in Europe, European property tax rankings, property tax collections as a percent of the private capital stock in 2019

Real Property Taxes in Europe, 2020

High property taxes levied not only on land but also on buildings and structures can discourage investment because they disincentivise investing in infrastructure, which businesses would have to pay additional tax on. For this reason, it may also influence business location decisions away from places with high property tax.

3 min read