Corporate Tax Rates of EU Countries

The corporate income tax is the main tax applicable to businesses operating in a certain country. Other taxes will apply to this, however, its value and whether or not reduced rates are available, represent key factors when choosing the location to base a company.

Our team of offshore company formation agents presents the values of the corporate income tax rates in a number of EU countries. For more detailed information you can always reach out to one of our specialists.

Tax rates across European countries

The table below includes the corporate income tax rates across nine different countries in Europe.

Country	Corporate Tax Rate
Hungary	With a 9% corporate income tax rate, this country has one of the lowest taxes on corporate income in Europe.
Cyprus	15% is the standard corporate income tax rate (from 1 January 2026; 12.5% until 2025); the former 3% defence contribution on rental income no longer applies, while other types of income can be subject to different rates.
Bulgaria	One of the lowest corporate tax rates in Europe, 10%.
Lithuania	The standard corporate income tax rate is 17% (from 2026) and small companies (revenue below EUR 300,000) can benefit from a 0% rate for their first two years and a 7% rate afterwards, subject to conditions.
Poland	The standard rate is 19%, however, a lower rate of 9% is available for small companies (this is subject to certain conditions).
Ireland	One of the EU countries with an advantageous corporate income tax rate of 12.5% for trading income and larger for non-trading income (25%).
Luxembourg	The corporate income tax has a standard value of 16% (from 2025) and a reduced one of 14% for companies with taxable income below €175,000, plus a 7% solidarity surtax; municipal business tax also applies (6.75% in Luxembourg City).
The Netherlands	The corporate tax is 19% for the taxable profit of up to 200,000 EUR and 25.8% for profits that exceed this amount.
Romania	The standard profit tax for companies is 16% and lower ones are available for small businesses, namely a single 1% turnover tax (from 2026, for micro-enterprises with revenue up to EUR 100,000 and at least one employee).

Other countries in the EU have higher corporate income tax rates. Examples include:

Austria: The standard corporate income tax is 23% (since 2024) and a minimum corporate income tax applies in case of limited liability companies and joint stock companies.
Belgium: Corporate taxation in Belgium has a standard rate of 25% (since 2020); a reduced rate of 20% is available for small and medium companies on the first 100.000 (subject to conditions).
Germany: The corporate income tax rate ranges according to the local trade taxes and reaches roughly 30% (15.825% corporate income tax including solidarity surcharge plus trade tax).
France: The standard rate for companies is 25% (since 2022), with a reduced rate of 15% for the first €42,500 of taxable profits of qualifying SMEs.

This table illustrates the corporate taxation rates in several countries across the EU. However, our team of offshore company formation specialists can give you more detailed information about these jurisdictions and others in Europe.

Offshore company setup according to corporate taxation

The value of the taxes for corporations in a certain country in Europe or elsewhere can have a significant impact on how that company runs the business and its profit rates. Investors who are interested in offshore company setup will often choose a country that has low corporate rates. In Europe, this is possible in a number of jurisdictions among which we can mention Ireland (12.5%), Isle of Man (0%), Hungary (9%) and others.

Entrepreneurs interested in knowing more about the corporate income tax rates across Europe can contact our offshore incorporation agents.