Lowest VAT in Europe

European VAT ranked from the lowest standard rate up. Click any column to sort, click any row to open the country.

European countries ranked by lowest VAT

Within Europe, standard VAT ranges from around 17% to 27%, so where you shop, sell or run an online business changes what you and your customers pay. Luxembourg has long had one of the lowest standard rates, with Malta and Cyprus also at the friendlier end, while Hungary and the Nordics sit at the top. For cross-border sellers and anyone watching the cost of living, a few points of VAT add up fast. The European countries below are ranked by standard VAT, lowest first, for 2026. Sort by any column to find the cheapest place to buy or base an EU business.

Country ▾	Income tax ▾	Corporate ▾	VAT ▾	Type
Hungary	15%	9%	27%	Standard
Finland	56.5%	20%	25.5%	Standard
Croatia	33%	18%	25%	Standard
Sweden	52%	20.6%	25%	Standard
Denmark	55.9%	22%	25%	Standard
Greece	44%	22%	24%	Standard
Estonia	22%	22%	24%	Standard
Portugal	48%	19%	23%	Standard
Poland	32%	19%	23%	Standard
Ireland	40%	12.5%	23%	Standard
Slovakia	35%	21%	23%	Standard
Italy	43%	24%	22%	Standard
Slovenia	50%	22%	22%	Standard
Spain	47%	25%	21%	Standard
Romania	10%	16%	21%	Standard
Czech Republic	23%	21%	21%	Standard
Netherlands	49.5%	25.8%	21%	Standard
Belgium	50%	25%	21%	Standard
Latvia	36%	20%	21%	Standard
Lithuania	32%	17%	21%	Standard
Bulgaria	10%	10%	20%	Standard
France	45%	25%	20%	Standard
Austria	55%	23%	20%	Standard
Cyprus	35%	15%	19%	Standard
Germany	45%	15%	19%	Standard
Malta	35%	35%	18%	Standard
Luxembourg	45.78%	16%	17%	Standard

Lowest VAT 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-VAT 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.

Lowest VAT in Europe: frequently asked questions

Which European country has the lowest VAT?

Luxembourg usually has the lowest standard VAT in the EU, with Malta and Cyprus close behind. Rates change occasionally, so check the current figure before making a decision.

Why does VAT matter for online sellers?

In the EU, VAT is generally charged based on where the customer is, under the One Stop Shop rules, so the destination rate applies. Still, your country of establishment affects registration, cash flow and compliance.

Do all EU countries have to charge VAT?

Yes. EU rules set a minimum standard rate of 15%, and every member state levies VAT. They can apply reduced rates to certain goods and services, which is why the effective burden varies.

Is there VAT-free shopping in Europe?

Non-EU visitors can often reclaim VAT on goods they export, and some small islands or special zones have reduced regimes. For residents, though, VAT applies to almost everything.

Keep exploring

Highest VAT in the world →European countries with the lowest income tax →Countries with the lowest corporate tax →Countries with a flat tax →

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