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Country comparison31jurisdictions in the table

Lowest corporate tax in Europe

Hungary has the lowest headline rate in our reference at 9%, flat since 1 January 2017. The headline rate is where the calculation starts: Estonia and Latvia tax only distributed profit, Malta refunds part of its 35% to shareholders, and Ireland’s 12.5% covers trading income only.

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Indicative prices; the final quote depends on your case.

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Facts checked on

Which rate applies to you

Lowest corporate tax rate in Europe, by business profile

A headline rate answers one question; the branch below that matches your profit pattern answers the one that decides the bill.

Will the company pay out most of its profit every year?

  • Yes, profit goes to the owners as it is earned

    Hungary

    BecauseHungary has applied one flat 9% rate to taxable profit since 1 January 2017, whatever the size of the company.9%Checked onsourcesecondary source

    Watch forHungary’s standard VAT is 27%, the highest in the table, which matters if you sell to consumers.

    Also compareBulgaria

    Ask about HungarySee the row in the table

  • Yes, and you want an EU company with fast registration

    Bulgaria

    BecauseBulgaria charges 10%, and the Commercial Register usually decides on an electronic filing within 1–3 business days.10%Checked onsourcesecondary source

    Watch forEnd to end, count 3–7 business days once documents are ready, including the capital deposit.

    Ask about BulgariaSee the row in the table

Will profit stay in the company for growth?

  • Yes, reinvested for several years

    Estonia

    BecauseEstonia taxes profit only when it is distributed; retained and reinvested profit is taxed at 0%.22%Checked onsource

    Watch forOnce paid out, the 22% is charged on the gross amount, which is 22/78 of the net dividend.

    Also compareLatvia

    Get a quote for EstoniaSee the row in the table

Is the income from trading or from investments?

  • Trading income from real business activity

    Ireland

    BecauseIreland’s 12.5% applies to trading income.12.5%Checked onsource

    Watch forRental and investment income is taxed at 25%, and groups within Pillar Two pay a minimum effective 15%.

    Ask about IrelandSee the row in the table

  • A holding or trading company with an EU address

    Cyprus

    BecauseCyprus moved to 15% from 1 January 2026 under Law 244(I)/2025; it was 12.5% until tax year 2025.15%Checked onsource

    Watch forRegistration takes about 10 working days, including name approval.

    Cyprus company formationSee the row in the table

Do you need the company registered within a day?

  • Yes, and a non-EU jurisdiction is acceptable

    United Kingdom

    BecauseUK online registration is usually completed within 24 hours.1 dayChecked onsource

    Watch forThe main rate is 25% on profits above GBP 250,000; the 19% small profits rate stops at GBP 50,000.

    Also compareMalta

    UK company formationSee the row in the table

Rates side by side

Lowest corporate tax rates in Europe

Rows are sorted by the headline corporate income tax rate, lowest first. Each cell opens its source and the note on reduced rates, surcharges or distribution rules. Registration time is the state’s part of the work, not ours.

Facts checked on

Swipe the table sideways for VAT and registration time.

CountryCorporate income tax, headlineStandard VAT rateCompany registration time
HungaryLowest headline rate9%Checked onsecondary source27%Checked onsecondary sourceNot publishedno dataChecked on
Bulgaria10%Checked onsecondary source20%Checked onsecondary source3 daysChecked onsecondary source
Ireland12.5%Checked on23%Checked onNot publishedno data - Companies Registration Office (cro.ie) pages were not accessible for verificationChecked on
Switzerland14.4%Checked onsecondary source8.1%Checked onNot publishedno data from a primary source; depends on the notary (public deed) and the cantonal commercial register.Checked on
Cyprus15%Checked on19%Checked onsecondary source10 daysChecked onsecondary source
Georgia15%Checked onsecondary source18%Checked onsecondary source1 dayChecked onsecondary source
Serbia15%Checked onsecondary source20%Checked onsecondary source5 daysChecked onsecondary source
Romania16%Checked onsecondary source21%Checked onsecondary sourceNot publishedno data (Trade Register processing time not verified)Checked on
Lithuania17%Checked onsecondary source21%Checked onsecondary sourceNot publishedno dataChecked on
Croatia18%Checked onsecondary source25%Checked onsecondary source5 daysChecked on
Poland19%Checked onsecondary source23%Checked onNot publishedno dataChecked on
Portugal19%Checked on23%Checked on1 dayChecked on
Finland20%Checked onsecondary source25.5%Checked onNot publishedno data: PRH publishes current processing times separately.Checked on
Latvia20%Checked onsecondary source21%Checked onsecondary source3 daysChecked on
Sweden20.6%Checked onsecondary source25%Checked onNot publishedno data: Bolagsverket publishes current processing times separately; not verified.Checked on
Czech Republic21%Checked onsecondary source21%Checked onsecondary sourceNot publishedno dataChecked on
Slovakia21%Checked onsecondary source23%Checked onsecondary sourceNot publishedno dataChecked on
Denmark22%Checked onsecondary source25%Checked onNot publishedno dataChecked on
Estonia22%Checked on24%Checked on1 dayChecked on
Greece22%Checked onsecondary source24%Checked onsecondary source1 dayChecked onsecondary source
Slovenia22%Checked onsecondary source22%Checked onsecondary sourceNot publishedno dataChecked on
Austria23%Checked on20%Checked onNot publishedno data from a primary sourceChecked on
Luxembourg23.87%Checked on17%Checked onNot publishedno dataChecked on
Italy24%Checked on22%Checked onNot publishedno dataChecked on
Belgium25%Checked onsecondary source21%Checked onsecondary source14 daysChecked onsecondary source
France25%Checked on20%Checked onsecondary sourceNot publishedno dataChecked on
Spain25%Checked on21%Checked onNot publishedno data — Commercial Registry must register an online-incorporated SL within 6 business hours when standard model statutes and deed are used (Ley 11/2023), but the end-to-end timeline for a foreign founder (NIE/NIF, bank certificate, notary) is not published by a primary source.Checked on
United Kingdom25%Checked on20%Checked on1 dayChecked on
Netherlands25.8%Checked on21%Checked onNot publishedno data - no official processing time found; depends on notary and KVKChecked on
Germany30%Checked on19%Checked onNot publishedno data from a primary source; timing depends on the notary and the local commercial register court (Registergericht).Checked on
Malta35%Checked onsecondary source18%Checked on1 dayChecked on

Sources behind each figure

Your comparison

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Questions

Lowest corporate tax in Europe: questions we get

Each answer uses the same reference as the table, checked on the date shown there.

Rates

Which country has the lowest corporate tax in Europe?

Hungary, at a flat 9% since 1 January 2017. Bulgaria follows at 10%.

Is Ireland’s 12.5% the rate every Irish company pays?

No. 12.5% covers trading income. Non-trading income such as rent or investment returns is taxed at 25%, and large groups within the Pillar Two rules pay a minimum effective 15% through a domestic top-up tax.

Did the Cyprus corporate tax rate change?

Yes. It is 15% from 1 January 2026, up from 12.5% until tax year 2025, under Income Tax (Amending) Law N. 244(I)/2025, published in the Official Gazette on 31 December 2025.

Why does Malta show 35% if it is known as a low-tax country?

Because 35% is the headline rate the company pays. Shareholders can then claim a refund of part of that tax, commonly 6/7ths on trading profits. Since 2025 a 15% final rate is available by election.

How do Estonia and Latvia tax a company that pays no dividends?

Retained profit is not taxed in either country. Estonia charges 22% on the gross amount when profit is distributed; Latvia charges 20% on distributed profit, with the taxable base divided by 0.8, which is 25% on the net amount.

Is the UK rate 25% or 19%?

Both, depending on profit. 25% is the main rate for profits above GBP 250,000, 19% is the small profits rate up to GBP 50,000, and marginal relief applies between the two.

Registration and timing

Where is company registration fastest?

Estonia, Greece, Malta, Portugal, Georgia and the UK list 1 day in our reference. In Estonia that assumes an Estonian ID or e-Residency card; without one, registration goes through a notary.

What should be ready before we file the registration?

The document list depends on the country, and we send it with the quote. If a registry returned an earlier filing, send us its written reason too, so we correct that point before we refile. The registry’s own processing time, such as about 10 working days in Cyprus, starts again with the new filing and is not shortened by us.

Sources

Where the rates come from

Tax authority pages, national laws and registers for each country in the table; secondary sources are marked.

65Sources
DocumentPublished byKindChecked on
Law
Körperschaftsteuergesetz 1988 § 22 – SteuersätzeRechtsinformationssystem des Bundes (RIS)LawChecked on
KStG § 23 – SteuersatzBundesministerium der Justiz (gesetze-im-internet.de)LawChecked on
SolZG 1995 § 4 – ZuschlagsatzBundesministerium der Justiz (gesetze-im-internet.de)LawChecked on
GewStG § 11 – Steuermesszahl und SteuermessbetragBundesministerium der Justiz (gesetze-im-internet.de)LawChecked on
GewStG § 16 – HebesatzBundesministerium der Justiz (gesetze-im-internet.de)LawChecked on
D.Lgs. 19 giugno 2026, n. 117 — Testo unico imposte sui redditi (arts. 2, 11, 86, 225, 246, 377; applies from 1 January 2027)NormattivaLawChecked on
On the Enterprise Register of the Republic of Latvia (Par Latvijas Republikas Uzņēmumu reģistru)Latvijas Vēstnesis / likumi.lvLawChecked on
Loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu (L.I.R.) – texte coordonné en vigueur au 1er janvier 2026 (Art. 2, 115 n° 13b, 118, 146, 148, 174)Administration des contributions directes (ACD)LawChecked on
Ley 27/2014, de 27 de noviembre, del Impuesto sobre Sociedades (consolidated; art. 29, transitional provision 44)Boletín Oficial del EstadoLawChecked on
Bundesgesetz über die direkte Bundessteuer (DBG, SR 642.11) – Art. 3, 14, 68Swiss Confederation (Fedlex)LawChecked on
Government site
Founding a companyMinistry of Economy of Croatia (Invest Croatia)Government siteChecked on
Income Tax (Amending) Law N. 244(I)/2025 - Tax Department presentationTax Department, Ministry of Finance of CyprusGovernment siteChecked on
Applying to incorporate a CompanyDepartment of Registrar of Companies and Intellectual PropertyGovernment siteChecked on
Tax rates (2024–2026)Estonian Tax and Customs Board (EMTA)Government siteChecked on
Your taxes vs your company taxes as an Estonian e-residente-Residency programme (Republic of Estonia)Government siteChecked on
Establishing a company in EstoniaInvest in Estonia (Enterprise and Innovation Foundation)Government siteChecked on
Impôt sur les sociétés (IS) : taux, déclaration, paiement (verified 17.02.2026)Service Public Entreprendre (DILA, Premier ministre)Government siteChecked on
Investitionssofortprogramm Deutschland: Mehr Wachstum und Wettbewerbsfähigkeit (BMF-Monatsbericht August 2025)Bundesministerium der FinanzenGovernment siteChecked on
Corporation Tax: basis of chargeRevenue CommissionersGovernment siteChecked on
What are the Pillar Two rules?Revenue CommissionersGovernment siteChecked on
Register a company, organisation, contract or commercial pledgeRegister of Enterprises of the Republic of Latvia (Uzņēmumu reģistrs)Government siteChecked on
Corporate income tax (IRC) – employment fund contributionGuichet.lu (Luxembourg Government)Government siteChecked on
Municipal business tax (impôt commercial communal)Guichet.lu (Luxembourg Government)Government siteChecked on
Mandatory submission of incorporations of companies and dissolutions as from 1st March 2025Malta Business RegistryGovernment siteChecked on
Tarieven vennootschapsbelastingBelastingdienst (Netherlands Tax Administration)Government siteChecked on
Código do IRC (consolidated, last update Lei 73-A/2025) — art. 87.º, 87.º-AAutoridade Tributária e AduaneiraGovernment siteChecked on
Empresa na HoraInstituto dos Registos e do NotariadoGovernment siteChecked on
Criar empresa onlineInstituto dos Registos e do NotariadoGovernment siteChecked on
Das schweizerische Steuersystem, Ausgabe 2025Eidgenössische Steuerverwaltung (ESTV) / Schweizerische SteuerkonferenzGovernment siteChecked on
Rates and allowances: Corporation TaxHM Revenue & CustomsGovernment siteChecked on
Set up a private limited company: register your companyGOV.UKGovernment siteChecked on
Official statistics
Gewerbesteuereinnahmen im Jahr 2024 um 0,2 % höher als im Vorjahr (durchschnittlicher Hebesatz 409 %)Statistisches Bundesamt (Destatis)Official statisticsChecked on
Secondary source
Belgium - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Key figures corporate income tax: Rates (2026)BDO BelgiumSecondary sourcesecondary sourceChecked on
Increase in the minimum remuneration of company directors: what are the corporate income tax implications?Andersen BelgiumSecondary sourcesecondary sourceChecked on
Comparison of the types of companies in BelgiumHawksfordSecondary sourcesecondary sourceChecked on
Bulgaria - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
How Long Does It Take to Register a Company in Bulgaria? (2026)Innovires LegalSecondary sourcesecondary sourceChecked on
Croatia - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Cyprus - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
A new era for Cyprus taxation: the key insights of the 2026 Cyprus tax reformHarneysSecondary sourcesecondary sourceChecked on
How to register a company in Cyprus in 2025Spencer WestSecondary sourcesecondary sourceChecked on
Czech Republic - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Denmark – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Finland – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
France — Corporate — Taxes on corporate income (last reviewed 24 April 2026)PwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Georgia - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Doing business in GeorgiaKreston GlobalSecondary sourcesecondary sourceChecked on
Greece – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Greece IKE formation – complete guideZunaproSecondary sourcesecondary sourceChecked on
Hungary - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Italy — Corporate — Taxes on corporate income (last reviewed 13 July 2026)PwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Latvia – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Lithuania – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Lithuania – Corporate – Significant developmentsPwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Malta - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Malta - Corporate - Income determinationPwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Poland – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Romania - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Serbia - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Establishing an LLC in Serbia - A Complete Legal GuideLLD AdvokatiSecondary sourcesecondary sourceChecked on
Slovak Republic - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Slovenia - Corporate - Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Sweden – Corporate – Taxes on corporate incomePwC Worldwide Tax SummariesSecondary sourcesecondary sourceChecked on
Corporate tax rates decline in Switzerland (Clarity on Swiss Taxes 2025)KPMG SwitzerlandSecondary sourcesecondary sourceChecked on
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