Corporate Income Tax Rates in Europe, 2025

Taking into account central and subcentral taxes, Malta has the highest statutory corporate income tax rate, at 35 percent. Portugal, Germany, and Italy follow, at 31.5 percent, 29.9 percent, and 27.8 percent, respectively. Hungary (9 percent), Bulgaria (10 percent), Cyprus (12.5 percent), and Ireland (12.5 percent) have the lowest corporate income tax rates.

On average, the European countries analyzed currently levy a corporate income tax rate of 21.6 percent. This is slightly below the worldwide average which, measured across 181 jurisdictions, was 23.5 percent in 2024. In comparison, the United States levies an average corporate income tax rate of 25.6 percent.

Like most regions around the world, European countries have experienced a decline in corporate income tax rates over the past four decades, but the average corporate income tax rate has leveled off in recent years.

Notable 2025 Changes

Over the past year, some countries have raised their statutory corporate rates, including Czechia (from 19 to 21 percent), Estonia (from 20 to 22 percent, effective from January 2025), Iceland (from 20 to 21 percent), Lithuania (from 15 to 16 percent, effective from January 2025), and Slovenia (from 19 to 22 percent).