Taxes in Europe by country 2024

The EU tax system in 2024 remains duly varied, reflecting the diverse set of economic conditions and disparate policy preferences of its members. While efforts at partial unification in specific areas have been tried, tax rates and approaches to taxation widely differ across the EU.

Personal Income Taxation

Various systems of income taxation are adopted within the European Union, although most countries use the multi-bracket progressive income tax system. In 2024, corporate tax rates in the EU vary from less than 10 per cent in some states to more than 30 per cent in others. For example, Ireland has one of the lowest rates of corporate tax within the EU space at 12.5 per cent; this enables it to attract foreign companies. In turn, France and Germany are examples of countries with one of the highest rates, which reflect their socially oriented focus on fiscal policy.

Income Tax Paid by Individuals

Income tax paid by individuals also exhibits a wide variation. Countries like Belgium and Denmark have high top rates of over 50 per cent, while countries like Bulgaria and the Czech Republic have relatively lower rates not exceeding 20 per cent. This reflects a variety of national measures for spreading the burden of tax across different sections of the population.

Social Contributions

Social contributions payable to finance social security systems, providing pensions, health insurance and unemployment benefits, amongst others, also differ quite considerably. In some countries, like Sweden and France, the total social contributions are relatively high, while in other countries, such as Malta and Cyprus, they are relatively low. Note that, quite often, social contributions are levied upon both employers and employees.

Value added tax (VAT)

VAT is an indirect tax on nearly all goods and services in the EU, with standard rates ranging from 17 per cent in Luxembourg to 27 per cent in Hungary. Most countries also apply reduced rates to items such as food, books, and medical services. Harmonization of VAT within the EU also means standard rules governing its collection, but leaves ample scope for national divergence over actual rates.

To sum up, the 2024 EU tax system is complicated and diversified-the result of balancing economic growth and social protection with public finances. The diversity of the EU tax systems echoes respect for national sovereignty in tax policy, but it also underlines challenges facing companies or individuals operating cross-border within the EU. Although the EU seeks to harmonize certain aspects of taxation in a bid to minimize barriers to trade and investment, divergence at the national level is sufficiently significant that businesses and investors should think carefully about how they can minimize tax exposure in jurisdictions where they operate and take local advice. Lawyers and tax advisers from specialist services provide the following country-by-country guide to European taxation:

 Taxes in Albania 2024

The Albanian tax system further develops in 2024, taking into consideration all the recommendations of international standards and best practices to provide a favorable environment for business and investments. Currently, Albania tries to simplify the administration of taxes, reduce the tax rate for certain categories of taxpayers, and introduce digital technologies into tax administration.

Corporate Tax

This makes corporate income tax in Albania competitive compared to countries in its region, aiming at further attracting investment in its priority sectors of the economy. The tax rate for legal persons is fixed while possible incentives and/or exemption might be applied depending on the attractiveness of the investment for economic development.

Value Added Tax (VAT)

VAT is one of the major sources of tax revenues for Albania. The rate of VAT is unified although a lower rate may be determined for certain goods and services of vital importance for the national economy. The procedure of VAT return to the exporters is being continuously simplified with a view to stimulating foreign trade activity.

Tax on Income of Individuals

The personal income tax in Albania provides a scale for progressive taxation. In the case of this scale, there are reduced rates for low-income earners and increased rates for high-income earners. This is supposed to work within the principle of social justice and the redistribution of incomes.

Social Contributions and Real Estate Taxes

Social contributions remain one of the substantial tax components, having the role of financing the system of social protection. Property and land taxes are also planned in such a way as to stimulate the real estate market, as well as to develop the use of land resources.

Digitalisation of Tax Administration

Currently, Albania is introducing digital technologies of tax administration with the view to simplifying the process of tax planning, declaration, and payment. This covers establishment of electronic declaration and payment systems and better access to tax information for taxpayers.

The tax system is developing in Albania in 2024 to be more adjusted to the world trends and the goals that the national economy is pursuing. Improvements in tax administration and incentives for investment and economic development in general continue to be significant elements of the country’s tax policy.

Taxes in Andorra 2024

International investment and business initiatives have been continuously lured to Andorra due to the highly developed economy it carries, along with one of the lowest tax rates in Europe. For 2024, the Andorran tax system maintains a balanced and innovative profile and provides an environment that is propitious for the development of entrepreneurship and private investments.

Corporate Taxation

Andorra’s corporate tax rate is among the lowest in Europe, thereby making this country appealing for international business. The tax system offers favorable conditions for a number of sectors of the economy, including innovative technologies and environmentally friendly production.

Taxation of Individuals

Andorra has a progressive scale of individual taxation, which guarantees social justice and incentivizes economic activity on the part of its residents. Tax rates are competitive, along with a low level of entry into the tax system.

Value Added Tax (VAT)

VAT in Andorra has the lowest rate in all of Europe, which encourages consumption and takes care of the local market. Its system is flexible and adapted to the needs of small and medium businesses.

Investment Incentives

Currently, Andorra offers the following investment incentives: tax incentives for foreign investors, measures to support start-ups, etc. The goal of this package of measures is to attract capital and develop the innovative sector of the economy.

Digitalisation of the Tax System

In addition, the country has actively pursued the digitalization of its tax infrastructure, providing electronic services that facilitate a smooth process and effectiveness in tax administration, such as declaration and payment of taxes electronically and consulting tax information online.

In 2024, tax Andorra represents one of the most tempting taxes in Europe, bringing together low rate, progressive system, and investment stimulus. This all leads to an understanding that the business climate will be favorable, which will encourage international investment and further strengthen the economic positions of Andorra on the international arena.

Taxes in Austria 2024

For 2024, Austria’s tax system will feature a number of important changes and updates with a view to enhancing tax efficiency and equity, as well as fostering economic growth and innovation.

Amendments to the taxation of cryptocurrencies

Austria has revised the rules regarding the taxation of proceeds derived from cryptocurrencies related to staking, airdrops, bounties, and hardforks. Thereafter, such gains are not considered for immediate taxation upon receipt but are considered only when sold. Also, if one cryptocurrency is exchanged for another, the transaction has no impact on taxation. A rule also exists which states that when units of the same cryptocurrency are successively acquired, a weighted average value in euros applies with regard to calculating the cost price.

New rules for submitting income declarations

A quota system for tax consultants was automated on which, starting from the reporting period of 2005, the tax returns – also in this case, income tax, corporate tax, VAT, and valuation returns – shall be filed no later than 31 March of the second calendar year following the reporting period. This innovation pursues the legal certainty and simplification of the process of filing tax returns.

Income tax on profit of legal entities

The Austrian corporate tax rate is 23% from 2024. Dividend and capital gains distributions to an Austrian holding company are exempt from Austrian corporate taxation, under specific conditions, such as a requirement for at least 10% direct investment in a foreign company, and that the investment be held for a minimum period of one year.

Taxation of individuals

A progressive tax scale was adopted for individuals, ranging from 0% for up to €11,693 to a maximum of 55% for more than €1,000,000. Social justice and the promotion of economic participation are highly emphasized, including various tax incentives so that this may be further facilitated: a full tax credit for the self-employed at €4,500 per year; an opportunity to use 15% of income tax credits on investments in specified assets.

The changes outline efforts towards a contemporary, flexible, and balanced system in Austria that can face up to the evolution of the economic environment and technological development. They are designed to foster the development of businesses, enhance innovation, and ensure fair taxation.

Key characteristics of Austrian taxation in 2024:

• Changes in Cryptocurrency Taxation: The new regulations bring about changes with regard to the treatment of income coming from cryptocurrencies, aiming at simplification and equilibrating this fast-evolving area.
• Tax return filing – new rules: It instates an automated quota system for tax declarations with the aim of simplifying the tax administration burden.
• Corporate income tax: The corporate tax rate is 23 per cent as from 2024, while dividends and capital gains paid to Austrian holding companies are exempt under specific conditions.
• Individual Taxation: It offers a progressive tax scale, tax exemptions to individual persons, and incentives for self-employed individuals and investments in specific assets.

The changes and news presented reveal the attempt of Austria to ensure that taxation is both efficient and fair, while economic growth and innovation have their place. This gives advantages to entrepreneurs and citizens since a modern and flexible tax system meets today’s economic and technological demands.

Taxes in Belgium 2024

The Belgian tax system further develops and improves in 2024 by implementing several changes and updates with a view to enhancing tax equity and combating tax evasion. The main features of the taxation regime in Belgium, subject to available information, are hereinafter presented.

Progressive income tax scale

Consequently, a progressive income tax scale is used in Belgium, with rates increasing according to the level of income. For 2024, the rate was progressive, starting with 25% on a taxable basis of up to EUR 15,200 and ending at 50% for incomes over EUR 46,440. Besides that, some kind of tax deduction can be considered, whereby an exemption allows some part of the income not to be included in the general tax base, thus diminishing the ultimate burden of this tax.

Changes in the federal budget and in tax measures

In the 2024 federal budget, the Belgian government also introduced several interesting tax measures. It has, more precisely, decided upon a temporary reduction of the use of tax assets within the current basket system from 70% to 40% above the €1 mln threshold until the implementation of the Global Minimum Tax system. The interest deduction regime for loans of large enterprises will be abolished, leaving it available only to SMEs.

Stricter Belgian Cayman Tax

In this respect, specific interest is paid to the tightening of the Belgian Cayman tax with the purpose of further decreasing the possibility for evasion via tax havens. Particularly, what is proposed is an exit tax in a way that upon emigration from Belgium, a fictitious dividend from the liquidation of a legal entity is attributed to the founder. The measures are also proposed to extend the substantive requirements as well as prescribe minimum shareholdings by independent persons in investment institutions and funds for the purpose of exemption from the application of the Cayman tax.

Taxation of non-residents

Belgium imposes taxes on non-residents with respect to income arising through Belgium. These taxes are imposed based on the Belgian source income and may be subjected to progressive rates of tax similar to those imposed on residents.

These changes put greater emphasis on the Belgian government’s commitment to a fairer and more efficient tax system, geared toward economic growth and curbing tax evasion. Salient features are the progressive income tax scale, temporary tax measures as a prelude to the introduction of the Global Minimum Tax, tightening of tax in respect of tax havens, and special tax rules for non-residents.

Taxes in Bosnia and Herzegovina 2024

Bosnia and Herzegovina Tax System in 2024 has continued the complex approach to taxation where direct and indirect taxes were administered at the country level as well as its regions. Key issues relating to taxation in Bosnia and Herzegovina for 2024, deduced from various sources of information, are presented below.

VAT system

Bosnia and Herzegovina maintains a single VAT system replacing sales taxes imposed at the entity level. The collection and calculation of VAT is the responsibility of the indirect tax authority. At this time, it is at a rate of 17 per cent on nearly all types of goods and services. The VAT paid by companies on their purchases is deducted from the VAT charged on provision of goods and services, in order for companies only to pay the difference between the VAT collected and the VAT paid. VAT is fully borne by the final consumer in the supply chain.

Key provisions

Most goods and services are liable to VAT, but there are also exemptions and special schemes for small companies, farmers, travel agents, suppliers of second-hand goods, works of art and antiques, and goods sold at public auctions. Activities that are exempt include: post, medical and educational services; social welfare and sporting activities; and financial and monetary services.

Taxes in Bulgaria 2024

During the year 2024, the general state of the taxation system in the country of Bulgaria will be pretty stable and thus attractive for all business companies and physical persons alike. Here is a more detailed outlook during the last months by means of legislative changes and policy decisions taken.

Corporate income tax

The most important amendments to the Corporate Income Tax Act in Bulgaria fixed an effective minimum tax rate of 15 per cent for large Bulgarian groups and Bulgarian members of large foreign corporate groups. The amendments will take effect on 1 January 2024 and are in line with the European Union’s directive on ensuring a global minimum level of taxation for multinational enterprises and large-scale national groups. The Directive covers the Bulgarian companies which are members of MNE groups or large-scale national groups, whose revenues for the parent company’s consolidated financial statements exceed EUR 750 million for at least two of the four financial years preceding the current financial year. This measure is supposed to counteract a tax system if the effective tax rate is less than 15%.

Personal income tax

Bulgaria applies a flat tax rate of 10% to personal income, which derives from a number of sources, such as employment, business activities and others. It provides for several tax exemptions and deductions in support of persons with disabilities, personal contributions to voluntary social security and insurance, pension insurance, donations, young families, children and non-monetary allowances.

Social insurance and health insurance

Another characteristic of the Bulgarian tax system is the wide social security and health insurance contributions, with rates and corresponding liabilities for both employers and employees. It provides a wide range of social and health benefits and thus gives some kind of safety net to the working population.

VAT system

The VAT rate remains at 20% for most goods and services in Bulgaria. A special VAT regime is applicable, alongside reduced rates on certain goods and services, including activities associated with tourism. This is structured so that VAT does not represent any cost for companies since the amount paid on purchases is deductible from the amount charged on supplies. The full tax burden throughout the whole supply chain falls on end consumers. Recent amendments also extended to tax laws, which include but are not limited to aspects of electricity contributions, VAT, and corporate income tax, making the system relevant and responsive to the local and global economic realities.

Local taxes and levies

The local taxes and fees in Bulgaria are imposed at the discretion of municipal councils, depending on their location, for things like property or vehicle tax. Simultaneously, the system provides flexibility at the level of local self-government and allows taking into consideration any specific municipal needs and priorities.

The simplicity of the tax regime, its competitive rates, and conformity to the requirements at an international level mark the hallmarks of the tax regime of Bulgaria in 2024. Besides this, another serious step toward world processes for tax reform is the introduction of the corporate tax for large groups at a rate of 15%; meanwhile, the one flat income tax rate and the value-added tax provide clarity and predictability for taxpayers. What businesses and people get in Bulgaria is a tax-friendly environment that strikes a balance between growth promotion, on one hand, and the principle of fair taxation on the other.

Taxes in Croatia 2024

The Croatian tax system is well-balanced, stimulating economic growth in the year 2024 and fairly distributing tax liabilities between corporate and individual taxpayers. Further below, a summary of key aspects of taxation in Croatia, including corporate tax rates, personal income tax, social tax, and VAT, is outlined.

Corporate income tax

The corporate income tax rate in Croatia amounts to 20%. The tax at the given rate is payable on net profit after deducting allowable expenses and depreciation. Reduced rate can be applicable for a small business, whose annual income does not exceed a statutory threshold.

Income tax for individuals

Income taxation in Croatia is based on a progressive scale, divided into several tax bands with different rates. In other words, this means that the higher the income, the higher the tax rate to be paid. The rates can further vary depending on annual income, considering various tax exemptions and deductions available for certain categories of taxpayers, such as families with children or persons investing in pension insurance.

Social tax

Employers and employees of Croatia pay social security contributions for pension, health, work accident and unemployment insurance. The total social tax rate is defined as a certain percentage of the employee’s salary. Part of the contributions are paid by the employer and part by the employee.

Value added tax (VAT)

The standard VAT rate in the Republic of Croatia amounts to 25% of the value of goods and services. In particular categories of goods and services, such as food, medical products, books, and educational services, reduced rates of VAT are applied, which makes the VAT system flexible and able to respond to different economic situations and social needs.

Nowadays, Croatia is further developing its tax system with the main goal of creating a favorable economic environment for business development and ensuring social support to the population. Proper understanding of tax rates and rules, together with their appropriate application, may help individual taxpayers and companies to optimize their taxes.

Corporate income tax

In Croatia, as in the majority of other countries, the corporate tax is paid by the company against net profits received. Standard corporate income tax rates normally fluctuate between 15% and 25%, although sometimes a specific value depends on country-related policies or the scale of income of the business.

The scale of income taxes for individuals is usually progressive, meaning that the more the income of an individual, the higher the tax rate. In countries that apply progressive taxation, there are quite a few exemptions and deductions from taxes; for example, families with children, for contributions to pension insurance.

Social tax

Social tax: includes pension insurance, health insurance, work accident and unemployment insurance. Contributions are usually shared by the employer and employee and contributions are as a rule paid as a percentage of wages.

Value Added Tax (VAT)

Standard VAT rates vary in European countries from 19% to 25%. At the same time, similar to other countries, Croatia may provide reduced VAT rates for particular categories of goods and services, such as food, medical products, and educational services.

For further information on the latest tax year, as concerns Croatia in 2024, one may need to address official sources and look for local fiscal consultants.

Taxes in Cyprus 2024

The system of taxation in Cyprus in 2024 is special because it combines attractive rates for investors and entrepreneurs with rigid but fair tax compliance requirements. In this article we look at key aspects of taxation in Cyprus including corporate income tax, personal income tax, social tax rate and VAT.

Corporate income tax

Cyprus charges corporate income tax at the current rate of 12.5%, considered one of the lowest within the European Union. It is charged on the net profit of the company, which, in fact, makes Cyprus a very attractive country to do business in, especially for international companies with aims to maximize profitability. It is important to note that certain types of income may be subject to specific tax exemptions, including dividends, interest, and proceeds from intellectual property rights.

Personal income tax

Personal income tax in Cyprus is oriented according to income. It ranges from 0% for an income below the threshold up to 35% of the maximum rate. Cyprus has a number of tax advantages available to residents, including incentives for new residents and special incentives for highly-skilled professionals.

Social tax rate

Social insurance in Cyprus is compulsory and comprises a wide range of social securities, such as pension, unemployment benefit, and health insurance. Throughout 2024, the total social tax rate equals about 20.5% of wages, out of which the employer’s share is approximately 8.3%, the employee’s share approximately 8.3%, and the difference covered by state social insurance.

VAT

In Cyprus, Value Added Tax is payable at different rates that depend on the class of goods and services. 19% is the standard rate applied on most goods and services. Reduced rates are also available at 9% and 5% on specific classes of goods and services. Medical services, tourist services, and some foodstuffs are examples of the classes.

The Cyprus tax system remains one of the most attractive in the European Union, considering its low corporate tax rates, favorable conditions for individuals and companies, and reasonable levels of VAT and social contributions. For this reason, the country can be of wide interest not only for international business and investments but also for people who seek favorable conditions of work and living.

Taxes in Czech Republic 2024

Taxation in the Czech Republic in 2024 continues to show very relative balance in stimulating economic growth and providing the necessary revenues to the state budget. In this article, we look at the most current aspects related to Czech Republic taxation, covering areas such as income tax rates, personal income tax, social tax, and VAT, in language relevant to businesses in regard to changes coming into force during 2024.

Corporate income tax

The rate of tax for companies in the Czech Republic also stabilized at 19% of the net profit earned after deducting all allowable expenses and depreciation. The Czech Republic has a host of tax incentives on types of businesses, including start-ups and companies with research and development activities, underlining the country’s commitment to fostering innovation and technological development.

Income Tax for Individuals

In 2024, income tax in the Czech Republic is still progressive, meaning as the level of income increases, so does the rate of taxation. The rates range from a minimum of 15 percent to a maximum of 23 percent for the highest incomes. The change will have the aim of increasing social justice and state budget revenues in order to finance public needs.

Social tax rate

Social tax in the Czech Republic covers unemployment insurance, pension insurance, and health insurance. In total, it represents about 34% paid by employers and about 11% contributed by employees from their earnings. Such payments are considered one of the main ways of providing social protection for citizens and financing social programs.

VAT

Value Added Tax rates in the Czech Republic will still, in 2024, be divided regarding the type of goods and services. There is a standard VAT rate of 21% to which most goods and services are subjected. The reduced VAT rates are 15% and 10%, considering the kind of goods and services, such as food, books, and medical products. This division of VAT rates underlines the government’s policy to keep the prices of basic products and services low.

The balanced tax policy is still applied in the Czech Republic, as the government tries to find an optimal balance between providing a good business environment and protecting the population socially. Stable corporate income tax rates, a progressive personal income tax scale, and a value-added tax system with various rates are implemented in the country.
d reasonable social tax and VAT rates make the Czech Republic’s tax system one of the most balanced in Europe, helping to attract investment and maintain social stability.

Taxes in Denmark 2024

Taxation in Denmark for the year 2024 also follows the precepts of social democracy with an intention to secure high social protection and quality for all. The Danish tax system, while complex, is aimed at justice itself, with transparency regarding the deduction mechanisms, and the ultimate goal is to contribute to social welfare and sustainable development. In the article that follows, we will present in the following the key elements of taxation in Denmark, such as corporate income tax, personal income tax, social contributions, and VAT, defined with business terminology.

Corporate income tax

In 2024, corporate income tax rate in Denmark is 22 per cent. It applies to all companies incorporated in Denmark, on their worldwide income. Danish legislation contains several tax incentives to promote investment in selected sectors of the economy, such as research and development that contribute to innovation and sustainable development.

Income tax for individuals

Personal income taxation in Denmark has followed a pattern of high rates and progressive scale—that is, the higher the income, the higher the rate of tax levied. The rates in 2024 ranged from about 37 percent to over 55 percent on the highest incomes. However, in spite of the apparent strictness, the system provides for some exemptions and deductions, for example, because of compulsory social insurance and contributions to pension funds, which lowers the burden on citizens.

Social contributions

In Denmark, for the most part, social contributions are paid from general taxes, and there are no separately levied contributions by employers or employees. However, a number of special contributions under labour insurance laws, together with a few others, are computed as a limited percentage of wages. This general taxation means that social security can provide a very comprehensive level of social services, encompassing such things as health care, education, and social support.

VAT

VAT in Denmark is 25 per cent, hence it is among the highest VAT rates in the world. As would be expected, this tax is levied against all kinds of goods and services; the revenue thereby gathered has been important in financing public expenditure. Despite the high rate, the VAT system in Denmark is assessed as an efficient and transparent tax administration tool.

The 2024 tax system has so far continued to ensure high levels of social welfare and sustainable development. Despite being among the highest in the world, the tax rate has made Denmark be regarded as one of the most just and equitable societies with a high standard of living. In itself, the system ensures that business incentives and individual incentives are catered for, hence a balance of weight for efficient taxation.

Taxation in Estonia 2024

The Estonian taxation and digital economy have been in the centre of investors’ and entrepreneurs’ attention for quite a while. The Estonian taxation system is going to rely more on its cornerstones in 2024, which are simplicity and efficiency, and will provide a number of stimuli for the development of business and investments in general. Then we will provide consideration to certain aspects of taxation in Estonia in respect of corporate income tax, personal income tax, social tax, and value added tax in business terminology.

Corporate Income Tax

Probably the most unique feature of Estonian tax policy concerns the treatment of corporate profits. In Estonia, income tax is not payable on the profits of a company as such, while it is payable on the distribution of a company’s profit in the form of dividends. For the year 2024, the rate of the tax will be 20 per cent, imposed on 1/0.8 of the amount of the profit that has been distributed. This principle encourages reinvestment and contributes to sustainable enterprise development.

Individual income tax

Estonian personal income tax is also distinguished by its simplicity and transparency. In 2024, the tax scale will be progressive: 20% of the basic rate for revenues below the threshold and 40% above the threshold. Estonia allows several deductions from tax, including education, medical expenses, and pension fund contributions; thus, decreasing the burden of tax payments.

Social Tax

Social tax is payable in Estonia, which pays for the health care and social security system. The rate of the social tax in 2024 corresponds to 33% of wages, where the minimum contribution base is established by the government. In fact, this is considered a big part of business social responsibility in the form of providing social guarantees to staff.

Value-Added Tax

In 2024, Estonian VAT will maintain a common rate of 20 per cent. The reduced one includes a 9% and 0% VAT rate referring to books, among other products. Medical products and foodstuffs and exportation of goods have a VAT rate. It is in this manner that certain sectors will be favored and others contributed to their development to help the economy.

The Estonian tax system is effective and innovative, keeping this trend going in 2024. Such a unique model of taxation of corporate profits, a progressive income tax scale for individuals, and simple and transparent social tax and VAT rates create favorable conditions for business, investment, and social development. Estonia keeps on serving as an example for a number of countries on how to effectively combine innovation-based economy with social responsibility.

Taxes in Finland 2024

Even in 2024, the Finnish tax system focuses much on the strong points of the Nordic model: combining high tax rates with comprehensive social services and investments in the common good. Finland ranks within the top countries globally in terms of quality of life, to which tax policy contributes a great deal. As one would have guessed, there are some key elements to be taken closer in hand for Finland’s tax system in 2024.

Corporate Income Tax

Finland offers a competitive corporate income tax rate of 20 per cent in 2024. This would be levied on the net profit earned by an enterprise after deducting all possible expenses. The country tries to maintain a favorable investment climate by providing numerous tax incentives for research and development and start-ups, motivating innovation and economic growth.

Income tax for individuals

Finland uses a progressive personal income tax scale, meaning the higher the income received, the higher the tax rate. The rate for 2024 ranges from approximately 6% on low incomes to approximately 31.25% for high ones, in addition to municipal taxes of approximately 20 per cent on average. In practice, a number of deductions and exemptions apply under the system, including those for social security and pension contributions, which reduce the overall level of tax payable.

Social tax rate

In Finland, social contributions are paid to finance a number of social services such as health care, education, and social security. Normally, the employers should pay the social contributions in the year 2024. How much is paid by employers depends on many factors, which include employees’ compensation. Ordinarily, for employers, the rate of social contributions varies between approximately 2% and 25%, depending on the type of insurance among other conditions.

VAT

Beginning with 2024, the Value Added Tax in Finland continues to be one of the crucial points in filling the state budget. The basic rate of value-added tax in Finland is 24 per cent. Reduced rates are applied to the following products and services: food and animal feed – 14 per cent, books, medicinal products, magazines, events of a cultural and sporting nature, passenger transport – 10 per cent. Such actions are addressed to support cultural development and healthy lifestyles of the population.

Taxation in Finland in 2024 is one of the means to continue the traditionally high level of social services and investment in the public good; it is fair, with effectively operating tax rates. The scale of progressive income tax, competitive corporate income tax rate, social contributions, and value-added tax create a very favorable business climate and help maintain the high quality of life for its citizens. Finland will keep on being a successful example of combining social responsibility with economic efficiency.

Taxes in France 2024

This is what France’s 2024 tax system continues to reveal: a complicated interplay of rates and regulations in pursuit of social fairness, combined with high economic growth and public services. It encompasses a range of tax rates, including corporate income tax, personal income tax, social contributions, and value-added tax. Let us look more closely at the following aspects in business terminology.

Corporate income tax
In France, this is about a corporate income tax rate of 25% for most companies in the 2024 calendar year, reflecting a continued trend of lowering the tax burden to put more muscle into the business environment and attract more foreign investment. More favorable rates operate for small businesses where turnover is below certain threshold limits to support SMEs and promote job opportunities.

Income tax for individuals
France has a progressive scale of personal income tax, ranging from approximately 11 per cent for low levels of income to 45 per cent for incomes above a certain threshold in 2024. In addition to the foregoing, an ultra-high-income tax may be levied. The progressive nature of the system is designed to share the burden of taxation in an equitable manner; however, this system has various abattements and exemptions that reduce the overall level of tax payable.

Social contributions

The French social contributions cover all major social securities, from pension and health insurance to unemployment benefits. In 2024, the maximum of the total social contribution rate for employers constitutes quite a big share in the salaries of employees; employees also pay their share from the salaries. One of the elements that make quite high the level of social protection among different groups of the population includes the following.

VAT
The value-added tax rate in France, for the year 2024, is kept at a standard rate of 20 per cent for most goods and services. Reduced VAT rates apply to specific classes of goods and services, such as food, books, medical products, and all cultural and educational services, with the purpose of offering support for accessibility in basic goods and services to all strata of the population.

The tax system in France in 2024 continued to properly balance raising necessary funds for public services and creating an environment conducive to economic development. French tax rates have remained relatively high when judged in relation to other countries, but they are very helpful in maintaining a highly desirable level of social protection and quality of life, which is the essential keynote of French tax policy.

Taxes in Germany 2024

German tax system remains one of the most developed and complicated ones in the world and remains so in 2024. Using a variety of tax rates and rules, Germany strives to balance its need to fund a wide range of social and infrastructure projects with creating an environment that is conducive to business and investment. Let’s take a closer look at the significant elements of taxation in business terms as of 2024.

Corporate income tax
This corporate tax rate is relatively stable, ranging from about 15% at the federal level to plus a trade tax that may vary between municipalities Gewerbesteuer, which in total raises it to about 30-33%. This is an advantage for companies in giving them a more predictable tax burden while encouraging local economic development.

Income Tax for Individuals
The progressive German income tax scale for individuals in 2024 applies rates beginning from 14% for low-income earners to as high as 45% for amounts above the threshold. In addition, a surtax-payer is charged an additional “wealth tax” (Reichensteuer) for ultra-high earnings. The system provides for several exemptions and deductions, such as education and social insurance, to allow for a reduced tax base.

Social contributions
Social contributions, equally shared by employers and employees pay for the social insurance in Germany. Altogether, the total rate of the social contributions includes pension, health, unemployment, and care insurance and amounts to about 40 per cent of wages, half of which are paid by the employer and another half by the employee. Hence, a high level of social protection is guaranteed to the population.

VAT
In 2024, the German VAT rate will be 19%, while it is regarded as a standard rate, applied to most goods and services. It permits the utilization of a reduced rate of 7 percent in certain goods and services, such as food, books, and magazines, with the purpose of maintaining cultural and basic products available to the population at the lowest possible prices.

The German taxation system in 2024 continued to finance the country’s large social and infrastructure network, including fuelling growth and innovation. Through a well-balanced approach, the German system of taxing individuals and enterprises develops social equity, business, and investment incentives, and keeps stability and prosperity for the German economy.

Taxes in Greece 2024

Over the past years, Greece has enacted many tax reforms that aim at encouraging economic growth and foreign investments. In 2024, the Greek tax regime moves in the same direction and creates a friendly climate both for local and international entrepreneurs. In the following article we are going to see, with more details, some of the most important elements of the Greek tax system, such as: corporate income tax, personal income tax, social tax and VAT.

Corporate income tax
For 2024, the corporate income tax rate in Greece is 24%. The above rate refers to the net income of companies situated and/or established in Greece. Compared with the previous year, no changes in the corporate tax rate level were made regarding the above aspect and ensure stability in Greek tax policy. Tax incentives and investment subsidy schemes may be granted in order to attract investment to specific sectors and areas.

Income tax for persons
In 2024, the Greek income tax is progressive: the more the taxpayer’s revenues are increased, the higher the tax rate on his income will be. From 9% for up to €10.000 to as much as 44% on revenues more than €40.000. In this respect, it is a system that provides social justice, imposing higher rates on taxpayers with bigger revenues.

Social tax
In Greece, social contributions are compulsory and payable both by employers and employees. For 2024, the total contribution rate for employees is about 16 per cent, with employers paying approximately 24 percent of the employees’ gross remuneration. These resources go to finance state social programs, which include pensions, health insurance, unemployment insurance.

Value Added Tax (VAT)
For Greece in 2024, the VAT rate is different in respect of various goods and services. The standard VAT rate is 24% and applies to most goods and services. Concerning reduced VAT rates, a 13% rate is charged on specific categories of foodstuffs, hotel services, and energy products, whereas a 6% rate applies to medicines, books, and some medical services. These separations of rates allow, according to the species, their social and economic importance to be taken into account in various categories of goods and services.

The Greek taxation system for 2024 is blended with business stimuli in a balance between social duties. Predefined corporate income tax rates, progressive individual income taxation, obligatory social insurance contributions, and value-added tax rates, differentiated depending on the type, create a predictable, free, and fair tax environment; this would be favorable for the development of local businesses and for attracting foreign investors to operate within Greece.

Taxes in Hungary 2024

In 2024, tax policy again provides significant potential to develop a good economic climate for enterprises and investments in Hungary. Since Hungary has one of the most competitive taxation systems in the European Union, this alone makes it very attractive for foreign investors. In this article, we go through the main aspects of tax regulation in Hungary: corporate income tax, personal income tax, social contributions, and value-added tax.

Corporate income tax

The corporate tax in Hungary for 2024 is at only 9 percent, ranking as one of the lowest within Europe. This highly recommends Hungary as one of the most attractive locations to carry out business transactions on the continent. The intention behind this low rate is to ensure investment and development in businesses, regardless of their size.

Income tax for individuals

In 2024, Hungary imposes a flat personal income tax at a rate of 15 per cent. The benefit of having one uniform rate is administrative simplicity in taxation and total transparency before the taxpayer. The flat income tax rate is beneficial to the average and high-income earners and thereby encourages consumption and economic growth as well.

Social tax
Social contributions are one of the two significant methods for financing the social protection system in Hungary – the other one being taxes on income – and cover pensions, health care and unemployment insurance. For 2024, the total level of social contributions paid by employers decreases to 13 per cent. Pursuant to the government’s strategy to reduce the taxes on labour and thus to increase employment, further reductions in social contribution rates take place.

VAT
VAT in Hungary continues to be one of the highest in the European Union; in 2024, it is at the standard rate of 27%. On the other hand, there are reduced rates on certain goods and services: for medical products and services, books, and some food products, it is 5%, while for the hospitality industry and some food products, it is 18%. Reduced VAT rates support certain industries in the economy or social policy.

Due to the low corporate tax rate, flat personal income tax rate, lower social contribution rates, and differentiated VAT rates, the Hungarian tax system has remained one of the most competitive in Europe throughout 2024. Such conditions do not just attract foreign investments but also contribute to the development of local business, creating favorable conditions for economic growth and increasing standards of living within the country.

Taxes in Iceland 2024

Its favorable tax environment-ever clearer and more effective-than ever has continuously made Iceland a popular country to do international business. During 2024, Iceland will be one of the most stable and predictable regimes in the world regarding taxation issues. As notable below, an overview of certain aspects of Icelandic taxation, including corporate income tax, personal income tax, social contributions, and VAT-issues important to know when doing business in Iceland.

Corporate income tax
For 2024, the corporate income tax in Iceland remains at 20 per cent. That is considered a relatively competitive level, promoting a good climate for investment by domestic companies and foreign ones alike. The policy of the Icelandic government is to ensure competitiveness at an investment centre while, at the same time, providing funding adequate for public services.

Income tax for individuals
Taxation of personal income in Iceland still uses a progressive scale in 2024, which fluctuates between 31.45% and 46%, depending on income level. It means that the higher the income is, the higher the rate should be. It is balanced regarding the distribution of the tax burden and is generally considered to be promoting social justice and giving a big contribution to the state budget.

Social tax
Social contributions are paid both by employers and by the self-employed, in Iceland. For 2024, this social contribution rate is estimated at 6.35 per cent of gross wages. This finances a wide range of social programmes, including pensions, health insurance, unemployment insurance, and therefore contributes to social protection.

Value added tax (VAT)
There are mainly two major VAT rates in Iceland: the standard rate is 24%, while the reduced rate is 11%. The reduced rate comprises, but is not restricted to, food, hotel services, books, and magazines. The VAT system has to be aimed at being fair, efficient, and supportive of sectors of social and economic importance.

Sustainability with predictability for business-the main components of the Icelandic tax system in 2024. A non-discriminating and competitive tax system is a contributor to economic growth in attracting investments and socially securing the inhabitants. Iceland remains one of the most sought-after destinations where entrepreneurs and investors may find a transparent, stable, and effective system of taxation. Working in the context of a transparent, stable, and effective tax environment can be alluring.

Taxes in Ireland 2024

Ireland has been continuously developing due to competitive tax rates and a propitious business climate as one of the key financial and technological centers in the world. In 2024, Ireland’s tax regime remains attractive to foreign investment and has ensured equity in the distribution of the tax burden. The current paper will depict the key elements of taxation in Ireland, such as corporate income tax, personal income tax, social tax, and VAT.

Corporate income tax
Ireland retains its competitive corporation tax rate of 12.5 percent for trading income in the year 2024. This is one of the lowest within the European Union and applies because a lot of multinational businesses set up their bases in Ireland. Where the income is non-trading-for example, property income-the applicable rate applies.

Income tax for individuals
Personal income taxation in Ireland is progressive, with 20% and 40% being the minimum and maximum tax rates applied depending on the level of income. The system also allows for a number of exemptions and deductions reducing the burden of tax for individuals and families. In addition, there is the Universal Social Charge, which is levied on top of the basic income tax.

Social tax
PRSI, in Ireland, is contributed by both employers and employees to finance various social programs in respect of pensions, sickness, and unemployment benefits. The PRSI rates in 2024 have been relatively low compared to European countries that support healthy levels of employment and entrepreneurial activity.

Value added tax (VAT)
The standard VAT rate for Ireland in 2024 is 23%. The reduced rates, on the other hand, are 13.5% on things like construction services, tourism, and certain food products, and even 9%, applying to newspapers and sporting events. This, in general, would be a way of subsidizing certain sectors of the economic segment and facilitating access to cultural and educational resources.

The Irish tax environment remains very friendly to businesses and investments even in 2024. The government also upholds very fair principles, with significant consideration for social protection. Ireland has been turned into one of the most attractive jurisdictions for international business, mainly due to its competitive corporate tax rates, progressive personal income taxation, reasonable social contributions, and flexible VAT system.

Taxes in Italy 2024

With an economy as varied as its landscape, Italy remains one of the best-placed countries in Europe for international investors and entrepreneurs alike. The Italian tax system has reached 2024, much in tune with optimizing the tax burden to boost economic growth and help enterprises grow. This article will look at the key aspects of taxation in Italy that will be important to know for any businessman in the country.

Corporate income tax

The corporate income tax rate in Italy in 2024 is 24%. In addition, regions apply an additional regional tax on productive activities at a rate that varies but hovers around 3.9%. These rates prove quite eloquently just how Italy favors investment in the manufacturing industry, fostering entrepreneurship on the local level.

Individual’s income tax

Italian income tax for individuals is progressive, meaning the more one earns, the higher the tax rate that applies. In 2024, the scale was from 23% up to 43%. Besides, the system is enriched with a number of exemptions and deductions, which reduce the tax burden for particular categories of the population, including families with children, and support socially important expenditure, including education and medical services.

Social tax

Social contributions are a major component of the Italian tax wedge both for employers and employees. The contributions paid by employers average around 30 per cent of the employee’s gross salary, while the employees pay approximately 10 percent. These contributions cover a wide range of social programmes, such as pensions, health care, and insurance against work accidents.

Value added tax (VAT)

In fact, for 2024, it was established in Italy that the standard value-added tax is 22%, while in the European Union, it is at the same rate of 22%. To complete the picture, the reduced rates are: 10% on food, medicines, and tourist services; and 4% for goods intended to be considered basic necessities such as foodstuffs and books. These measures would aim to keep consumption going and favor certain productive sectors.

Competitive corporate tax rates, progressive personal income taxation, significant social contributions, and a well-balanced VAT system make Italy’s tax environment complex and multi-dimensional. Even in 2024, the Italian tax system faces the challenge of balancing the need to boost economic growth with that of providing financing for public services and social assistance. Understanding those facets of taxation is crucial for successfully doing business in Italy and may help optimize the tax burden for enterprises and individual entrepreneurs.

Taxes in Latvia 2024

At the very heart of the Baltic Sea region, Latvia, having an open economy and favorable tax policy, has continued to attract the attention of the international business community. In 2024, Latvia boasts a comprehensive tax environment-encouraging growth and innovation, yet making sure that social responsibility is not sacrificed, nor is support for society. Now let’s take a closer look at some key aspects of Latvia’s taxation: corporate income tax, personal income tax, social contributions, and VAT.

Corporate income tax

In 2024, Latvia still has a unique Corporate Income Tax system, whereby tax is payable only upon distribution of profits. The corporate income tax rate regarding the distribution of profits is 20 per cent. This regime is intended to stimulate reinvestment of profits in support of the sustainability of the companies’ development.

Income tax for individuals

Personal income tax in Latvia is also progressive. In 2024, tax rates depend on the level of income of the taxpayer and range from 20% to 31%. This will enable a balanced distribution of the tax burden with a view to promoting social justice, providing support to low-income groups of the population.

Social tax

Social contributions in Latvia provide pension insurance, health care, unemployment insurance, and other social guarantees. In 2024, the total level of social contributions is 35.09 percent of the employee’s gross wages, of which the employee pays 11 percent and the employer pays 24.09 percent. Funding vital social programs and services.

Value added tax (VAT)

Starting from 2024, the general VAT rate in Latvia amounts to 21%. Special rates are provided for certain types of goods and services: 12% for medical goods and services, as well as for books and periodicals, and for hotel services. Such a measure allows for more favorable conditions to provide cultural and educational goods and to develop the tourist sector of the economy.

The Latvian tax system, with new tax mechanisms and stimuli included, will continue to stimulate business and investments in 2024. The corporate income tax system, with progressive personal income tax and reasonable social contributions and a balanced VAT system, creates favorable conditions for the development of business and attracts foreign investors. Latvia is an excellent example of what balanced tax policy can bring in the growth of an economy and at the same time protect and support the population.

Taxes in Liechtenstein 2024

The small Principality of Liechtenstein, situated in the heart of Europe, has not stopped luring investors from all corners of the world with its favorable tax policy, political stability, and innovative economy. In 2024, the Liechtenstein tax system is still one of the most attractive in the world, perpetuating an environment that is friendly both to native and foreign entrepreneurs and investors. Now, let’s look closer at the main components of Liechtenstein taxation: corporate income tax, personal income tax, social contributions, and value-added tax.

Corporate income tax

Liechtenstein has one of the lowest corporate income tax rates in Europe. This is 12.5 per cent of net income. Due to this level of taxation, the Principality is an attractive location for international companies in optimizing their tax burdens within the framework of creating the efficiency of operations.

Income tax for individuals

Individual income in the Principality of Liechtenstein is progressively taxed, with taxation on a scale of 1% to 8%. The structure is such that there is a fair distribution of the tax burden and, on the other hand, an incentive for highly qualified employees and entrepreneurs to be active in the Principality.

Social tax

Social contributions in Liechtenstein include pension, disability and unemployment insurance. The overall level of social contributions is relatively low compared to other European countries and amounts to about 11 per cent of wages, shared between employer and employee. This is an important part of creating a favourable working environment and yet maintaining a high level of social protection.

Value added tax (VAT)

Therefore, speaking in general terms, Liechtenstein provides one of the lowest levels of value-added tax in Europe, specifically 7.7 percent for the current year of 2024. In fact, the above-mentioned tax rate is applied to a big amount of goods and services, supplementing the revenues in the state budget while not providing an excessive burden of this type of tax on the consumers as well as entrepreneurs.

Currently, the Liechtenstein tax system in 2024 continues to contribute to sustainable economic growth and attracts much foreign investment. A combination of low tax rates with a fair social contribution system and a favorable VAT makes the Principality one of the most attractive financial centers in the world. In fact, for entrepreneurs and investors, Liechtenstein offers unique business development opportunities in a stable supportive environment.

Taxes in Lithuania 2024

The Lithuanian economy is one of the most attractive in Europe due to its transparent tax system and stimulating economic policy. In 2024, the country offers a simplified and efficient tax structure oriented toward supporting both local and foreign entrepreneurship. Below are the basic tax rates, such as corporate income tax, personal income tax, social contributions, and VAT, that are relevant for those wishing to do business in Lithuania.

Corporate income tax

In 2024, the corporate income tax rate in Lithuania stands at 15%, which is friendly to international competitiveness for the country. A reduced rate of 0-5% is foreseen for small enterprises whose annual turnover does not exceed the threshold provided. As such, this policy stimulates the emergence of small and medium-sized enterprises, which are a considerable driving force for the country’s economic growth.

Income tax for individuals

Lithuania applies progressive scale individual income tax in the range of 20 to 32% based on the level of income. Progressive taxation distributes the burden of tax fairly because it stipulates the higher the earnings, the higher the rate of taxation.

Social tax

In Lithuania, the pension system, health insurance, unemployment insurance, and other social guarantees are financed by social contributions. In 2024, the total level of social contributions is about 31.18 percent, most of which falls to the lot of the employer. This underlines the commitment of Lithuania towards ensuring a high level of social protection for its citizens.

Value added tax (VAT)

Starting from 2024, the standard VAT rate in Lithuania would be 21%. It is intended for reductions to 9% and 5% for certain goods and services. These are medical products and services, books, press, and some food products. The reduction of the VAT rate makes important goods and services available to the population.

Even in 2024, the Lithuanian tax system provides a very favorable environment for business development, with an additional focus on the stimulation of innovation and entrepreneurship. This leads to a rather competitive economic environment, combining competitive tax rates, progressive income taxation, and social contributions to ensure social protection along with a flexible VAT system that is appealing for both local and foreign investors. In this way, Lithuania illustrates that it is indeed possible to make effective tax policy contribute to sustainable economic growth and social welfare.

Taxes in Luxembourg 2024

With political stability, an innovative economy, and a benign tax environment, the country remains attractive to both international groups and investors. Consequently, in 2024, because of the competitive incentives and the clarity of the tax system, it remains one of the principal European financial centers. The key elements of taxation in Luxembourg concern: corporate income tax, personal income tax, social contributions, and VAT.

Corporate income tax

With a corporate income tax rate of 17% in 2024, Luxembourg continues to be one of the most appealing jurisdictions when it comes to corporate taxation within Europe. This includes municipal income tax and a contribution in favour of the Chamber of Commerce. As such, the total tax rate can achieve an approximate rate of 24.94%, depending on the location in Luxembourg.

Income tax for individuals

Personal income tax remains progressive in Luxembourg, with the progressive scale ranging from 0% to 42% according to income. Multiple different kinds of exemptions and deductions are presumed under the income tax system, which allows taxpayers to minimize their burden. Such a progressive scale and incentives provided further contribute to fair burden sharing.

Social tax

Social contributions in Luxembourg are paid for by a broad social security system, including pensions, health insurance, and unemployment benefits. The total rate of employee social insurance contribution for 2024 is approximately 12.45% of wages, while employers contribute approximately 15.6%. This covers a high level of protection for all citizens of Luxembourg.

Value added tax (VAT)

As far as the consumption and investment determinants are concerned, a relatively low VAT rate has been provided for Luxembourg, among one of the lowest in the European Union. In 2024, the standard rate for VAT would be 17%, where the reduced rates apply at 14%, 8%, and a super-reduced one of 3% on certain goods and services, like foodstuff, medical goods and services, and cultural and educational activities.

The tax system of Luxembourg in 2024 still provides a good climate in which to conduct business and stimulate investment. Low corporate taxes combined with progressive income taxation, reasonable social contributions, and competitive VAT form a very favorable economic environment for companies and individual entrepreneurs. Luxembourg confirms its reputation as one of the leading financial centers by offering stable and attractive tax policy.

Taxes in Malta 2024

With its alluring tax regime, stable economy, and strategic geographical location, Malta is still on the go in establishing its reputation as one of the essential business centers in the Mediterranean. For the year 2024, the Maltese tax system has a number of incentives on the widest possible grounds for businesses and investors, underlining its openness to international business and investment. The aim of the following article is to be a short overview of how Malta can attract with the following main taxes: corporate income tax, personal income tax, social contributions, and value-added tax.

Corporate income tax

Malta provides for a corporate income tax at a rate of 35 per cent. However, considering the local imputation tax credit and refund system, foreign investors and companies with international activities can have a significant reduction in the effective rate. Indeed, through this refund system, it is possible to refund an essential percentage of the corporate income tax paid, ensuring an effective rate among the lowest in the European Union.

Income tax for individuals

Maltese income tax law provides for a progressive scale of income tax that applies to individuals, ranging from 0% to 35%, depending on the extent of income. Numerous exemptions and deductions under the system cut down the burden of taxation, in particular for families and low-income groups.

Social tax

Social contributions payable in Malta finance a range of social services, including pensions, health care, and unemployment benefits. For 2024, the standard rate was seen to be around 10 percent of wages by employees and 10 percent by employers, which will eventually contribute to sustainable social protection.

Value added tax (VAT)

The regular VAT rate in Malta in 2024 is 18%, within the range of the regular VAT rates in the European Union. One can also find reduced rates in Malta on specific goods and services, at 7% and 5%, where charges for tourist accommodation fall, books, and medical devices, while a zero rate is provided for certain foodstuffs, medicines, and educational services.

The Maltese tax system in 2024 remains competitive, providing for a low tax rate, creating tax mechanisms by way of incentives, and wide social securities for individuals. Having flexible investment-oriented tax policy, Malta confirms its status as an appealing jurisdiction for international business aimed at the development and diversification of its economy.

Taxes in Montenegro 2024

Having this in mind, Montenegro continued to have one of the most attractive tax systems in the region, with the desire to attract more and more foreign investments and boost the economic growth of the country. In 2024, the tax policy of Montenegro is directed toward entrepreneurship, facilitating the functioning of tax administration and creating an investment environment that is as favorable as possible. This paper covers the major areas of taxation in Montenegro: corporate income tax, personal income tax, social contributions, and VAT.

Corporate income tax

In 2024, the corporate tax rate in Montenegro stands at 9 per cent, placing it among the lowest within Europe. It is believed that this competitive rate supports investment activity and the building of local business, which positions the country as an investment destination for foreign investors.

Income tax for individuals

Income taxation of individuals in Montenegro is also very simple and transparent. In 2024, most types of personal income are subject to a flat rate of 9 per cent. This policy creates clarity and predictability for residents and non-residents earning income in Montenegro.

Social tax

Social contributions in Montenegro pay for pensions, health care, unemployment insurance and other social programmes. In 2024 the total level of social contributions is around 24.8 per cent of wages, of which the employee pays approximately 15 per cent, and the employer approximately 9.8 per cent. The latter provides the possibility of enhanced social protection and quality social services.

Value added tax (VAT)

Starting from the year 2024, the standard VAT rate in Montenegro will remain at 21% for nearly all products and services. A reduced rate of 7% would cover other categories of goods, such as food, medical goods and services, educational services and books, which are necessary to alleviate the cost of living, thus reducing the living standards and simultaneously supporting cultural development.

Accordingly, one of the most appealing tax systems in Europe is the system adopted by Montenegro, aimed at contributing to the stimulation of economic growth and foreign investments. Low corporate tax rates, simplified income taxation, reasonable social contributions, and flexibility in the VAT system-altogether form a very favorable environment for doing business and sustainable development. That way, Montenegro confirms its status as an attractive jurisdiction to do international business and invest in.

Taxes in Netherlands 2024

The Netherlands, one of the key financial and corporate entry points in Europe, combines an attractive business climate with an innovative approach to taxation. In 2024, the Dutch tax system continues to further offer a favorable environment for local and international businesses that support social responsibility and sustainable economic development. Key elements of Dutch taxation in the year 2024 will include corporate income tax, personal income tax, social contributions, and value-added tax.

Corporate income tax

For 2024, the standard Dutch corporate income tax is 15% for profits up to €395,000 and 25.8% for profits above this threshold. Once again, these rates show the commitment of the Netherlands to ensuring that the country remains internationally competitive and provides a good climate for businesses of all sizes.

Income tax for individuals

Depending on the level of income, income tax in the Netherlands is levied on a progressive scale to ensure fairness in taxation. In 2024, these range from 37.07% for incomes up to EUR 69,398 and 49.5% for above this amount. The consequences of such a system are that the burden is spread and underpin social programmes.

Social tax

Social contributions in the Netherlands finance a wide range of public services, including pensions, health insurance, and unemployment benefits. In 2024, the total rate of social contribution is approximately 27.65% of wages, to be shared between employer and employee, thus providing a high level of social protection.

Value added tax (VAT)

In 2024, the standard rate of VAT in the Netherlands is 21% on most goods and services. The reduced rates of 9% are applied to only essential commodities such as food, books, and medical products, added to this area of services for the facilitation of access to vital goods and services by all groups of the population.

The Dutch tax system in 2024 continues to create a favourable economic environment for business while keeping the social protection and sustainable development at a high level. Further, with such a balanced approach to taxation, the Netherlands confirms its reputation as an attractive place to do business and offers not only local but also foreign companies opportunities for growth and development.

Taxes in Macedonia 2024

Over the years, Macedonia has been active in creating a good climate for doing business, including the reform of the tax system. In 2024, this country enjoys attractive tax rates for both corporations and individual entrepreneurs, testifying to its openness for investment and entrepreneurial activity. Now, let’s look in greater detail at the main structural elements of taxation in Northern Macedonia: corporate income tax, personal income tax, social contributions, and value-added tax.

Corporate income tax

The corporate income tax rate in North Macedonia in 2024 is 10 per cent, which is amongst the lowest rates in Europe. This applies to all legal entities and indicates that the country is committed to attracting foreign investment and stimulating economic development.

Income tax for individuals

Personal income taxation in North Macedonia offers attractive conditions, too. In 2024, a progressive scale operates in relation to the level of income over a threshold at 10% and 18%, respectively. This regime is an opportunity for the fair distribution of the tax burden among the population.

Social tax

In Northern Macedonia, the pension system, health care, unemployment insurance, and other social programmes are financed by social contributions. For 2024, the total level of social contributions amounts to around 27.8 per cent of gross wages, a substantial part being paid by the employer. Social contributions are one of the fundamental means of protecting employees.

VAT

From 2024, Northern Macedonia applies the VAT rate of 18% to most goods and services, being on par with the European average. However, specific categories of goods like foodstuffs, medicines, and health services have a reduced rate of 5%, which contributes to making basic goods more available for the population.

The tax system of North Macedonia, in 2024, provides conditions that are favorable for the development of both local and foreign businesses. Low corporate income tax rates, progressive personal income tax, reasonable social contributions, and a flexible system of VAT provide support to economic growth and attract investments. Thus, North Macedonia confirms its status as one of the most attractive countries to conduct business within this region.

Taxes in Norway 2024

Norway still provides a great sustainability factor and attractiveness through the country’s tax system to businesses and individual entrepreneurs. In 2024, taxation in Norway will move in a balanced direction: on the one hand, this is the financing of many social programs, and on the other hand, it is the creation of a favorable business environment. The key aspects of taxation are such kinds as Corporate Income Tax, Personal Income Tax, Social contributions, and Value-added tax.

Corporate income tax

In 2024, the corporate tax rate in Norway is 22 per cent. From a Nordic perspective, the corporate income tax rate is relatively low, which reflects a desire to stimulate entrepreneurship and attract foreign investment. In addition, Norway has a series of tax exemptions and incentives, in many fields, but with research and development as a priority, which stimulates innovative and technological development.

Income tax for individuals

The progressive scale of income taxation applied in Norway varies from 22% to 38.4%, depending on income level. A number of deductions and exemptions within the tax system are provided in order to reduce the burden of this very tax for such categories of population as families with children and persons who invest in pension funds.

Social tax

Social contributions in Norway finance the social security system, including pensions, health insurance, unemployment benefits, and other social programmes. In 2024, the general level for social contributions is around 14.1 percent for employers and for the self-employed based on income but also within similar percentage rates.

VAT

In Norway, the VAT in 2024 will be at a general rate of 25% for most commodities and services-the so-called Scandinavian standards. However, there are reduced rates: 15% applies to foodstuffs, and 12%-to transportation, cultural, sports services, and some other products and services. This is done to support certain sectors of the economy and provide easier access to basic commodities and services.

Taxation in Norway in 2024 continues to foster a stable and predictable corporate environment where equal treatment is combined with the effective financing of social programs. Particular emphasis is placed on supporting innovation and entrepreneurship and attracting foreign investment, which is why Norway is an internationally attractive location to start and run a business.

Taxes in Poland 2024

Still, Poland shows that the creation of favorable conditions for doing business and investing are created by applying an effective, transparent, and fair tax system. Polish tax policy in 2024 is modernized to the current economic realities. It has thus adopted an approach to taxation that is comprehensive, stimulative of growth and innovation. The main areas of taxation in Poland concern corporate income tax, personal income tax, social contributions, and VAT.

Corporate income tax

The corporate income tax rate in Poland was 19% for the majority of companies, which evidences the country’s serious approach to remaining in a competitive position with regard to the tax climate for business. For SMEs fulfilling certain criteria, there is a reduced rate of 9%, which fosters the development and growth of this part of the economy.

Income tax for individuals

The income tax scale for individuals is progressive, at rates of 17% and 32%, respectively, according to the level of income. For 2024, the system of tax deductions and exemptions remains applicable, reducing the tax burden for some categories of the population, such as families with children and persons who invest in pension insurance.

Social tax

The social insurance contributions in Poland consist of pension insurance, health insurance, unemployment insurance, and insurance against accidents at work. In the year 2024, it is estimated that the total level of social contributions payable by an employee amounts to approximately 13.71% of wages and approximately 20.48% paid by the employer. These taxes are used for financing essential social programs and services.

Value added tax

The standard VAT rate in Poland in 2024 remains at a level of 23% for the most goods and services. There are reduced VAT rates of 8% and 5% concerning certain goods and services, such as foodstuffs, medicines, medical goods and services, books, and magazines. Such a differentiation in the rates aims to support the affordability of basic goods and services by the population.

Polish taxation, moving into 2024, continues to be one of the main contributors to the development of the country’s economy, balancing business and investment in a competitive atmosphere. With its pursuit of innovation and support for entrepreneurship, efficient tax administration, and social responsibility, it attracts both domestic and foreign investors. The Polish government is ready to hold a dialogue with business and to adapt tax policy to changed economic conditions, which creates favorable prospects for further economic growth and development.

Taxes in Portugal 2024

Still in 2024, Portugal continues to create a favorable business climate by continuing its course of stimulating foreign investments through efficient and balanced taxation policies. Competitive tax rates and various incentives stimulate national and international business while securing sufficient financing of public and social programmes. The principal aspects of taxation in Portugal therefore include corporate income tax, personal income tax, social contributions, and value added tax.

Corporate income tax

In 2024, the general corporate tax rate is 21% in Portugal. This sets Portugal in the relatively competitive group regarding corporate tax rates within the European Union. Moreover, special regimes are foreseen for taxing start-ups and R&D companies, offering, on top of standard taxation principles, additional tax incentives and opportunities to reduce the overall tax burden.

Income tax for individuals

Income taxation in Portugal is progressive, starting from 14.5% and rising as high as 48%, depending on the level of income one earns. Besides this, there are a number of exemptions and deductions that are allowed to lower the burden of paying tax for such categories of people as families with children and those who invest money in pension insurance.

Social tax

Social contributions are paid compulsorily by all employed people in Portugal and they finance the pension, health and unemployment insurance systems. In 2024, the global rate of social contributions is around 34.75 per cent, with 23.75 per cent being contributed by the employer and 11 percent by the employee. This gives a significant boost to the social protection of the population.

Value added tax (VAT)

The VAT rate in Portugal will be maintained at 23% in 2024 for goods and services in general. The reduced rates are 13% and 6% respectively, for certain goods and services, such as food, medical products, cultural events, among others. The measures would be implemented to support the affordability of the most essential goods and services for the general population at an accessible level.

The Portuguese tax system in 2024 also proves to be oriented towards sustainable economic development and welcoming foreign investment. A balanced and competitive business environment allows the country to direct main attention to supporting innovation, fostering entrepreneurship, and providing high-level social protection, making Portugal one of the most welcome countries for the international business community and investors.

Taxes in Romania 2024

Romania continues to express its commitment to establishing an economic and tax environment that would be very helpful for companies to develop their businesses by encouraging foreign investment. In 2024, the tax regime of Romania also captures modern challenges because many efforts are made to create an overall institutional framework that would stimulate economic growth and innovation. The most important components of the tax system are Corporate Income Tax, Personal Income Tax, Social Contributions, and VAT, each of which has a specific place in the general concept of taxing in Romania.

Corporate income tax

Accordingly, the corporate income tax rate in Romania for 2024 is set at 16%, which proves that this country respects its commitment to a competitive tax environment for businesses. Regarding micro-enterprises, whose annual turnover is lower than a threshold, there is a special rate of 1% or 3% of the turnover, depending on whether the number of employees is below or above a certain threshold, to support and foster small and medium-sized enterprises, considered to be the real driver of the national economy.

Income tax – individuals

Personal income tax in Romania is 10 percent for 2024, representing the commitment to a single and transparent system. This 10% rate generally applies across the board to wages and salaries, business income, and investment income. The underlying approach guarantees predictability and equity of taxation at the population level.

Social tax

The social contributions are paid in Romania for the financing of the social security system, including pension, health, and unemployment insurance. For 2024, the total rate for social contributions paid by employees is approximately 35 percent of an employee’s salary, to be shared between employees and employers. These contributions form part of the social policy designed to protect and support workers.

Value Added Tax (VAT)

In 2024, the general standard VAT rate according to Romanian law will remain at 19%, aligned with most European countries. Additionally, it will continue giving certain classes of goods and services, such as food, pharmaceutical products and services, books and magazines, tourism, and cultural services, reduced rates of 9% and 5%. Some of the support mechanisms in favor of consumption and key economic sectors development refer to the following:

In 2024, tax policy in Romania remains one of the decisive factors which create a very favorable business climate in this country, stimulating economic growth and innovative development. The listed below elements of the tax policy create a very attractive environment for doing business in Romania: well-balanced corporate tax rates, low-income tax, social contributions for social protection, and flexible VAT system. The government will further develop the tax system with a view to its adaptation to the present economic situation and current needs of business.

Taxes in Serbia 2024

With its very dynamic economy and one of the most favorable tax environments, Serbia stays right in the focus of international business. Being one of the key economic centers of South Eastern Europe, in 2024 it still offers broad tax incentives for local and foreign businesses. In this article, we take a closer look at the most important features of taxation in Serbia: corporate income tax, personal income tax, social contributions, and VAT.

Corporate income tax

In Serbia, the corporate income tax rate for 2024 stands at 15% of this basis. This underlines the commitment undertaken by the country in a bid to attract investment and promote business growth. This stands out as one of the lowest rates in the region and places Serbia in good standing as it attracts international companies in their efforts to optimise their tax liabilities.

Income tax for individuals

Individual income tax in Serbia is graduated depending on income, with a progressive tax scale. For 2024, the income tax remains in the previous trend, at a rate of 10-15% for the highest grade of tax. This system is fair considering the spread in the population’s tax burden and at the same time stimulating an increase in income.

Social Tax

Social contributions in Serbia finance the social protection system including pensions, health care, and unemployment insurance. In 2024, the total rate of social contributions is around 37 per cent of gross wages shared between the employer – about 17 per cent – and the employee – about 20 per cent. Such contributions are relevant in ensuring social stability and protection of the population.

Value added tax (VAT)

The value-added tax is uniform in Serbia at a rate of 20 per cent for the majority of goods and services and also includes reduced rates of 10 per cent on food, medical and educational services. This allows for the affordability of major goods and services by the population.

In 2024, Serbia’s tax policy continues to create favorable conditions for business, while at the same time providing the necessary funding for social programs and services. Competitive tax rates are complemented by various incentives and investment support, making this country interesting for entrepreneurs and investors from different countries. The Serbian Government declares readiness for further perfection of the tax system in the context of changing economic conditions and emerging business needs.

Taxes in Slovakia 2024

The economy of Slovakia continues to strengthen its position as one of the most dynamic in Central Europe, boasting a favorable tax climate for business and investment. In this respect, in 2024, the Government of Slovakia has in store various new measures in the tax area, along with changes in this respect, for the purpose of stimulating economic growth and attracting foreign investments, yet without neglecting the necessity of healthy public finances. This paper will present some important aspects of taxation in Slovakia, corporate income tax, personal income tax, social contributions, and value-added tax being the most significant ones.

Corporate income tax

In 2024, corporate income tax rate in Slovakia is 21 per cent. This rate corresponds with the competitiveness of the Slovak economy at both the national and international levels, allowing for business development and expansion. Slovakia also provides several exemptions and tax investment incentives for selected industries and technologies, which favours innovative development of the economy.

Income tax for individuals

Currently, the personal income tax in Slovakia in 2024 is progressive; that is, it goes up to a certain threshold at a rate of 19 percent, with the rate increasing above the threshold to 25 percent. In this context, their system is guaranteeing the principle of just distribution of the tax burden and social solidarity.

Social Tax

In Slovakia, social contributions form the social security system and are made up of pensions, health care, and unemployment benefits. In 2024, the overall level of social contributions is about 35 per cent of the gross wage, shared by both employers and employees. These contributions form one of the largest parts of Slovakia’s social policy aimed at protecting and supporting the working population.

Value Added Tax-VAT

The VAT rate in Slovakia for 2024 is set at 20 percent for the greater part of goods and services, keeping pace with the average value within the European Union. Reduced rates of VAT, including 10 percent, would apply to certain categories of goods and services, medical products, books, and some categories of foodstuffs, by virtue of this contributing to the availability of vital goods and services for all strata of the population.

Competitive tax rates, investment and innovation-friendly incentives show that, in 2024, Slovakia keeps pursuing an efficient and well-balanced tax system creating a favorable business environment with conditions for sustainable economic development. It also goes on to consolidate its position in Central Europe as an attractive business destination by offering local and foreign companies transparent and foreseeable tax conditions.

The Taxes in Slovenia 2024

In 2024, Slovenia continues to create a tax environment that is as favorable as possible for economic growth and business. At the same time, it is dedicated to ensuring that a tax system, tax incentives to innovation, and sustainable development go together with social protection and support of citizens. Now, let’s look at some aspects of taxation in Slovenia, namely: corporate income tax, personal income tax, social contributions, and VAT.

Corporate income tax

In 2024, corporate income tax rate in Slovenia is 19 per cent, thus making it an internationally competitive country. At the same time, different tax incentives regarding investments in research and development, ecologically friendly technologies and job creation support innovations and sustainable economic development.

Income tax for individuals

Personal income tax in Slovenia is levied progressively, starting from 16 per cent and reaching 50 per cent, thus equitably distributing the burden of the tax. Various deductibles and exemptions, e.g., for families with children, donors and pension insurance investments contribute to the social support of the population within the framework of a tax system.

Social tax

Social contributions in Slovenia pay for a broad spectrum of social programs, including pensions, health care, unemployment insurance, and maternity. For 2024, the total level of social contributions amounts to about 38.2 per cent of gross wages, with the employee’s contribution amounting to about 22.1 per cent and the employer’s part amounting to about 16.1 per cent. This ensures that the level of social protection is very high for all groups of employees.

Value added tax (VAT)

In Slovenia, in 2024, the basic VAT rate equaled 22% of the value of most goods and services, corresponding to European standards. Additionally, there is a subsidized VAT at a rate of 9.5 percent for goods and services like food, books, and medical appliances, which help make basic goods available to the population.

Slovenia is further consolidating its position in 2024 as a country that, with its favorable tax climate, develops businesses and attracts investment while securing high levels of social protection. The country’s tax policy is to create enabling conditions for sustainable economic growth, innovation, and the attraction of foreign investors, underlining the desire for a balance between economic efficiency and social responsibility.

Taxes in Spain 2024

Spain continues to adapt to the challenges besetting the world and European economies by making adjustments in its tax system in order to stimulate business growth and attract more investments. In 2024, it will further go on updating its tax rates and regulations to support economic development and social stability. Now, let’s see some of the important features of the system of taxation in Spain-for instance, corporate income tax, personal income tax, social contributions, and VAT.

Corporate Income Tax

For 2024, the standard corporate tax rate in Spain stands at 25%. A reduced rate applies to SMEs whose maximum turnover is EUR10 million and no more than 50 employees. Another reduced corporate income tax rate of 20% is applied to the first EUR300 000 of profit. Apart from this, other tax incentives are put forward with the view to encouraging investments in research and development, clean technology, and jobs creation.

Income tax for individuals

Personal income tax in Spain is levied on an ascending scale, ranging from 19% to 47%, according to income. This exhibits the urge for equitability in the distribution of the tax burden and to assist the middle class and low-income group with many deductions and exemptions.

Social tax

Social contributions are paid both by employers and employees in Spain to finance a social security system that provides pensions, health insurance, and unemployment benefits. The overall level of social contributions reaches about 30-35 per cent of the gross wages in 2024, which denotes how much importance is given to social support within the country.

Value added tax (VAT)

In this respect, the common VAT rate in Spain in 2024 is 21%. Reduced rates include 10% and super-reduced of 4%, applied to such categories of goods and services as food, medical goods and services, books, magazines. These measures are focused on supporting basic goods and services affordability for the population.

The tax system in Spain in 2024 will, in fact, find a balance within the meaning of being supportive for economic development and investment, on one hand, and for the social protection of citizens, on the other hand. The country keeps up with the changes in the economic conditions, attempting to create a sustainable and comfortable environment for business and life. The Spanish Government has opened wide the door for communicating with business and showed an ability to be innovative regarding tax policy, which contributes to strengthening the country’s economic potential.

Taxes in Sweden 2024

In 2024, Sweden proceeds under the same line of its policy of severe but just tax collections, which give a high level of social guarantees and provide for infrastructure in this country. Within the limits of this article, we will consider in detail the main points of Sweden’s tax system, namely income tax, income tax, social contributions and VAT.

Taxation of corporate income

During 2024, the corporate income tax rate in Sweden is 20.6 per cent. It is levied on a company’s net income, as well as on domestic source income and, depending on the content of double tax treaties that Sweden has concluded with other countries, on specific types of income from abroad. Companies incorporated in Sweden are taxed on worldwide income while the non-resident companies are only taxed on income that has been derived from sources in Sweden. The good thing about the Swedish tax system is that it has a various type of deductions that can be used to reduce your taxable income and these include operating expenses, depreciation on assets, and interest on business loans.

Income tax for individuals

Swedish residents are subject to income tax which is progressive in nature and based on the income in their hands. For the year 2024, income up to SEK 614,000 is only subject to municipal tax at an average of 32% of the total amount. For income earned in excess of the above amount, an additional national tax of 20 per cent is levied. A flat rate tax of 25% is levied on persons who work in Sweden but reside elsewhere.

Social contributions

Social contributions in Sweden are payable by employers and amount to 31.42 per cent of the employee’s salary for persons between 15 to 65 years of age. For persons over 65 years, the social contribution rate is reduced at a rate of 10.21 per cent. This is an important element when it relates to the financing of the Swedish social security system.

VAT

The standard VAT rate in Sweden is 25%, applying to most goods and services. The preferential rates are set as follows: 12% on food and some services, including hotel services, and 6% on books, newspapers, and domestic passenger transport. These rates enable the VAT to be an important source of revenue for the government and a leading element of the Swedish tax system.

Sweden has one of the most developed taxation systems in the world, with a very high level of social protection and quality public services. The introduction and adjustment of tax rates in 2024 show that the government is going to maintain the standards of this system, considering international competitiveness. It is important that local and foreign entrepreneurs and workers be aware of current tax requirements and create plans for their activities in light of such changes.

Taxes in Switzerland 2024

In 2024, the Swiss tax system maintains a unique character due to its decentralized structure where the federal, cantonal, and communal level collect taxes. This leads to a multi-tiered taxing system for private individuals and companies alike.

Corporate income tax

The corporate income tax is uniform at the federal level, being levied at a flat rate of 8.5% on after-tax profits, which corresponds to a pre-tax income tax rate of approximately 7.83%. Besides this federal CIT, each canton has its own income and capital tax rates for companies at both cantonal and communal levels. Accordingly, the total range of maximum rates of CIT on pre-tax income is between 11.9% and 21.0%, depending on the location of the company in a particular canton.

Income tax for individuals

Personal income tax in Switzerland is levied at both federal and cantonal level, subject to a variety of allowable deductions. Swiss taxation provides for different rates and deductions for single taxpayers and families with children, and also pursues opportunities to reduce the tax burden by way of various allowable expenses for commuting, workplace meals, alimony, charity donations, daycare, and medical expenses. Switzerland also has more than 80 bilateral conventions for the avoidance of double taxation.

VAT

As of 1 January 2024, new VAT rates are applicable in Switzerland: the standard rate amounts to 8.1%, the reduced rate to 2.6% and the special rate for the accommodation sector to 3.8%. This change was adopted in order to finance old-age and survivors insurance.

Social contributions and supplementary taxes

The Swiss tax system also involves property and wealth taxes, including property tax and an income tax on the deemed rental value of real estate. The rates of property taxes vary by canton and usually range from 0.2 to 0.3 percent of the assessed value of the property. Thirdly, individuals with Swiss-based real estate or other assets may also be subject to a wealth tax that is based upon net wealth, allowing for the deduction of identifiable debt.

Swiss taxation aims at a balance between funding public and cantonal services, trying to maintain competitiveness for Switzerland as a location where business operations are welcome in the year 2024. Because of this tiered structure, the actual burden of the taxes can differ quite a lot depending on the place of residence; therefore, planning and consultation with tax consultants play an utmost important role in optimizing the tax liabilities.