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Estate taxes, inheritance taxes, and gift taxes in Europe 2023

Estate, Inheritance, and Gift Taxes in Europe

As tempting as inheritance, estate, and gift taxes might look—especially when the OECD notes them as a way to reduce wealth inequality—their limited capacity to collect revenue and their negative impact on entrepreneurial activity, saving, and work should make policymakers consider their repeal instead of boosting them.

3 min read
Tax Subsidies for R&D Expenditures in Europe including R&D tax incentives

Tax Subsidies for R&D Expenditures in Europe

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 offers R&D tax incentives.

3 min read
2022 dividend tax rates Europe dividend income tax rates

Dividend Tax Rates in Europe, 2022

In many countries, corporate profits are subject to two layers of taxation: the corporate income tax at the entity level when the corporation earns income, and the dividend tax or capital gains tax at the individual level when that income is passed to its shareholders as either dividends or capital gains.

3 min read

Capital Gains Tax Rates in Europe, 2023

In many countries, investment income, such as dividends and capital gains, is taxed at a different rate than wage income. Denmark levies the highest top capital gains tax of all countries covered, at a rate of 42 percent. Norway levies the second-highest top capital gains tax at 37.8 percent. Finland and France follow, at 34 percent each.

4 min read
Von der Leyen Biden EU IRA & Competitiveness | Tax FoundationPresident von der Leyen President Biden Can’t Fix European Competitiveness clean tech and Inflation reduction act subsidies

Dear President von der Leyen: President Biden Can’t Fix European Competitiveness

Focusing on the “threat” to European industry caused by the Inflation Reduction Act rather than internal tax system flaws puts the EU at risk of slower economic growth and possibly losing some of its important industrial base. It is also contrary to the EU’s geopolitical goals.

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

EU Taxation: Prioritizing Geopolitics over Revenue

If the EU wants to strategically compete with economic powers like the United States or China, it needs principled, pro-growth tax policy that prioritizes efficient ways to raise revenue over geopolitical ambitions.

6 min read
Top Personal Income Tax Rates in Europe 2023 Income Tax Rates or Individual Income Tax Rates

Top Personal Income Tax Rates in Europe, 2023

Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) have the highest top statutory personal income tax rates among European OECD countries.

2 min read
2023 corporate tax rates in Europe compare corporate income tax rates in Europe Corporate tax rates Europe

Corporate Income Tax Rates in Europe, 2023

Taking into account central and subcentral taxes, Portugal has the highest corporate tax rate in Europe at 31.5 percent, followed by Germany and Italy at 29.8 percent and 27.8 percent, respectively

2 min read
2023 VAT rates in Europe, 2023 VAT rates by country, 2023 value-added tax rates in Europe and 2023 value-added tax rates by country

VAT Rates in Europe, 2023

The EU countries with the highest standard VAT rates are Hungary (27 percent), Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 16 percent, followed by Malta (18 percent), Cyprus, Germany, and Romania (all at 19 percent).

4 min read
Actionable VAT Policy Gap in Europe including VAT gap and VAT revenue potential in Europe

Actionable VAT Policy Gap in Europe

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.

3 min read
Transatlantic Trade and Investment Partnership (T-TIP) US EU tax and trade policy why Congress should care about EU tax policy

In the Shadow of T-TIP: Why Congress Should Care About EU Tax and Trade Issues in 2023

The EU’s unilateral approach with carbon taxes, faster track on the global minimum tax, and threat of renewed efforts on DSTs means that U.S. policymakers face some hard choices. Policymakers on both sides of the Atlantic should keep in mind pro-growth tax and trade principles that promote a rules-based international order and increase opportunity.

7 min read
EU tobacco tax directive EU cigarette tax rates 2021 VAT EU reforms

The Future of Tobacco Taxation in Europe

Later this week, the European Union is expected to release a new Tobacco Tax Directive, the first update in more than a decade. Early reports indicate that the EU will propose a significant increase to the existing minimum cigarette tax rates levied across the Union and expand the product categories that are taxed, including a block-wide vaping tax.

7 min read
EU fiscal fairness economic fairness and tax fairness Testimony before the EU Parliament’s Subcommittee on Tax Matters Public hearing on “The impact of national tax reforms on the EU economy”

EU “Fiscal Fairness”

Europe is facing difficult times. Governments are balancing the need for more resources with the need to maintain peace and prosperity domestically. To properly strike this balance, EU policymakers must incorporate “Fiscal Fairness” into the debate.

2 min read
Comparing income tax systems in Europe best and worst personal income taxes Europe 2022

Comparing Europe’s Tax Systems: Individual Taxes

France’s individual income tax system is the least competitive among OECD countries. France’s top marginal tax rate of 45.9 percent is applied at 14.7 times the average national income. Additionally, a 9.7 surtax is applied to those at the upper end of the income distribution. Capital gains and dividends are both taxed at comparably high top rates of 34 percent.

2 min read
Windfall tax Europe 2023 windfall profits taxes in EU windfall tax What European Countries Are Doing about Windfall Profit Taxes and Windfall Tax policies in Europe Bloomberg Tax

What European Countries Are Doing about Windfall Profit Taxes

It’s unlikely these implemented and proposed windfall taxes will achieve their goals of addressing high gas and energy prices and raising additional revenues. They would more likely raise prices, penalize domestic production, and punitively target certain industries without a sound tax base.

9 min read