Corporate Income Tax Rates in Europe, 2026

Taking into account central and subcentral taxes, Malta has the highest statutory corporate income tax rate, at 35 percent. Germany, Portugal, and Italy follow, at 30.06 percent, 29.5 percent, and 27.8 percent, respectively. Hungary (9 percent), Bulgaria (10 percent), Cyprus (12.5 percent), and Ireland (12.5 percent) have the lowest corporate income tax rates.

On average, the European countries analyzed currently levy a corporate income tax rate of 21.6 percent. This is slightly below the worldwide average which, measured across 181 jurisdictions, was 23.6 percent in 2025. In comparison, the United States levies an average corporate income tax rate of 25.6 percent.

Like most regions around the world, European countries have experienced a decline in corporate income tax rates over the past four decades, but the average corporate income tax rate has leveled off in recent years.

2026 Notable Changes

• Over the past year, two countries have raised their statutory corporate rates: Lithuania (from 16 to 17 percent, effective from January 2026) and Slovakia (from 21 to 24 percent).
• Two countries decreased their statutory corporate rate: Iceland (from 21 to 20 percent) and Luxembourg (from 24.9 to 23.87 percent).
• France has introduced an exceptional contribution for the first fiscal year ending on or after 31 December 2025, temporarily raising the effective corporate income tax rate from 25.8 percent to 36.1 percent. However, on 20 February 2026, France enacted the Finance Law for 2026 that extends the exceptional surtaxA surtax is an additional tax levied on top of an already existing business or individual tax and can have a flat or progressive rate structure. Surtaxes are typically enacted to fund a specific program or initiative, whereas revenue from broader-based taxes, like the individual income tax, typically cover a multitude of programs and services. for one more year. The 2026 surtax will apply to companies with a turnover higher or equal to €1.5 billion (€1 billion for the 2025 surtax).