Carbon Taxes in Europe, 2025
In recent years, several countries have taken measures to reduce carbon emissions, including instituting environmental regulations, emissions trading systems (ETSs), and carbon taxes.
4 min readIn recent years, several countries have taken measures to reduce carbon emissions, including instituting environmental regulations, emissions trading systems (ETSs), and carbon taxes.
4 min readTax Foundation Europe’s Sean Bray had the opportunity to interview Dr. Stefanie Geringer, a postdoctoral researcher at the Faculty of Law at the University of Vienna and Masaryk University Brno, a certified tax advisor and manager of tax at BDO Austria, about the future of the EU tax mix.
14 min readMany 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 readTax Foundation Europe’s Sean Bray had the opportunity to interview Dr. Dominika Langenmayr, Professor of Economics at Catholic University of Eichstätt-Ingolstadt, about the future of the EU tax mix.
15 min readTo make the taxation of labor more efficient, policymakers should understand their country’s tax wedge and how their tax burden funds government services.
5 min readDeveloped countries raise tax revenue through individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes—the combination of which determines how distortionary or neutral a tax system is.
4 min readCarryover provisions help businesses “smooth” their risk and income, making the tax code more neutral across investments and over time.
5 min readCurrently, about half of all European OECD countries have either announced, proposed, or implemented a digital services tax. Because these taxes mainly impact US companies and are thus perceived as discriminatory, the US responded with retaliatory tariff threats.
5 min readTax Foundation Europe’s Sean Bray had the opportunity to interview Professor of International Taxation at the University of Mannheim Business School, Christoph Spengel, about the future of the EU tax mix.
15 min readWithout aligning fiscal discipline with pro-growth tax policies, Germany and the EU risk high deficits, mounting debt, and sustained inflation.
5 min readDaniel Bunn had the opportunity to interview the Vice-Minister for Economy and Finance of Italy, Maurizio Leo, about the tax policy priorities of the Italian government. The conversation shows a commitment to reforming rules that create legal uncertainty and support competitiveness.
5 min readTwenty-four out of the 35 European countries covered in this map currently levy estate, inheritance, or gift taxes.
3 min readPolicymakers should aim for neutral tax policies that support stable revenues like VATs and avoid inviting trade conflicts with discriminatory and economically harmful policies like DSTs.
6 min readThe empirical evidence thus far on sugar-sweetened beverage taxes fails to support claims that these taxes will create substantial health benefits. At the same time, their structural limitations make them ill-suited for generating stable, equitable revenue.
54 min readWith the imposition of American tariffs on steel and aluminum imports on March 12th, the European Union was officially pulled into the global trade war.
Many countries’ personal income tax systems tax various sources of individual income—including investment income such as dividends and capital gains.
4 min readAn update to the EU’s Excise Tax Directive that embraces harm reduction principles would save lives and provide a steady stream of revenue to support public health expenditures.
22 min readTax legislation in 2025 may have good reason to address international corporate income taxes, because of scheduled changes slated to go into effect or because of international developments like the Pillar Two agreement.
63 min readCapital gains taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment.
5 min readThe agreement represents a major change for tax competition, and many countries will be rethinking their tax policies for multinationals. If there is no agreement on changes to Pillar Two or digital services taxes, retaliatory American tariffs could be on the horizon.
8 min read