Curated list · updated 2026
European countries with the lowest income tax
EU member states ranked by top personal income tax, lowest first. Click any column to sort, click any row to open the country.
| Country ▾ | Income tax ▾ | Corporate ▾ | VAT ▾ | Type |
|---|---|---|---|---|
 Finland | 56.5% | 20% | 25.5% | Standard |
 Denmark | 55.9% | 22% | 25% | Standard |
 Austria | 55% | 23% | 20% | Standard |
 Sweden | 52% | 20.6% | 25% | Standard |
 Belgium | 50% | 25% | 21% | Standard |
 Slovenia | 50% | 22% | 22% | Standard |
 Netherlands | 49.5% | 25.8% | 21% | Standard |
 Portugal | 48% | 19% | 23% | Standard |
 Spain | 47% | 25% | 21% | Standard |
 Luxembourg | 45.78% | 16% | 17% | Standard |
 Germany | 45% | 15% | 19% | Standard |
 France | 45% | 25% | 20% | Standard |
 Greece | 44% | 22% | 24% | Standard |
 Italy | 43% | 24% | 22% | Standard |
 Ireland | 40% | 12.5% | 23% | Standard |
 Latvia | 36% | 20% | 21% | Standard |
 Cyprus | 35% | 15% | 19% | Standard |
 Malta | 35% | 35% | 18% | Standard |
 Slovakia | 35% | 21% | 23% | Standard |
 Croatia | 33% | 18% | 25% | Standard |
 Poland | 32% | 19% | 23% | Standard |
 Lithuania | 32% | 17% | 21% | Standard |
 Czech Republic | 23% | 21% | 21% | Standard |
 Estonia | 22% | 22% | 24% | Standard |
 Hungary | 15% | 9% | 27% | Standard |
 Bulgaria | 10% | 10% | 20% | Standard |
 Romania | 10% | 16% | 21% | Standard |
Lowest income tax in Europe
Europe stays within easy reach of the EU while still trimming your tax bill, which is why it draws so many nearby movers. 27 of the 27 low-tax European countries on this list are in Europe:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
European countries with the lowest income tax: frequently asked questions
Which European country has the lowest income tax?
Among EU members, Bulgaria's flat 10% is usually the lowest headline rate, with Romania and Hungary close behind. Outside the EU, Georgia, Andorra, Monaco and the Channel Islands go lower still.
Is Andorra part of the EU?
No. Andorra is a European microstate between France and Spain but not an EU member. It has a low top income tax rate and no wealth or inheritance tax, which is why it draws so many nearby movers.
Can EU citizens move freely for tax reasons?
Yes. Freedom of movement lets EU and EEA citizens live and work in any member state, then become tax-resident there. You still have to genuinely move your life and centre of interests, not just an address.
Do low-tax EU countries have high VAT instead?
Sometimes. Hungary has the EU's highest VAT at 27%, for example. A low income tax can be balanced by higher consumption or social taxes, so compare the whole burden.
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