Comparison
Small-business corporate tax
The lowest corporate income tax a small or newly formed company can pay in each country — and the conditions to qualify. Several countries tax only distributed profit, so retained earnings are effectively 0%.
| Requirements | ||
|---|---|---|
| Estonia | 0% | 0% on retained or reinvested profit; 22% applies only on distribution. This applies to all companies, of any size. |
| Latvia | 0% | 0% on retained profit; tax (20%, i.e. 20/80) applies only when profit is distributed. Optional micro-enterprise turnover tax also exists. |
| Lithuania | 0% | First two tax periods for new small companies (income ≤ €300,000, individual shareholders); 7% for small companies thereafter. |
| Romania | 1% | Micro-enterprise regime: 1% on revenue under €100,000 (the former 3% tier and €250,000 ceiling were abolished for 2026), with conditions on activity and staffing; 16% standard otherwise. |
| Malta | ~5% | 35% headline, but the 6/7 shareholder refund on distributed trading profit brings the effective rate to about 5% — for companies of any size. |
| Hungary | 9% | The 9% flat rate is already the EU’s lowest; an optional 10% small-business tax (KIVA) can replace corporate tax and the social contribution. |
| Poland | 9% | For small taxpayers (revenue under €2m) and companies in their first tax year; excludes capital gains. |
| Bulgaria | 10% | Flat rate; no separate small-business relief. |
| Croatia | 10% | For companies with revenue up to €1 million; 18% above that. |
| Slovakia | 10% | For companies with revenue up to €100,000; 21% standard and 24% for large companies (tax base over €5m). |
| Ireland | 12.5% | 12.5% on trading income for companies of any size; new companies can get up to 3 years of start-up relief that reduces the tax due. |
| Luxembourg | 14% | 14% corporate income tax on taxable income up to €175,000 (before the 7% surcharge and municipal business tax). |
| Cyprus | 15% | No reduced small-business rate; the 15% rate (raised from 12.5% for 2026) applies to companies of all sizes. |
| France | 15% | 15% on the first €42,500 of profit for SMEs (turnover under €10m, at least 75% owned by individuals); 25% above. |
| Portugal | 15% | 15% on the first €50,000 of taxable income for SMEs and small mid-caps; 19% standard above that (rates differ in Madeira and the Azores). |
| Spain | 15% | 15% for newly created companies in their first two profit-making years; reduced 19–23% bands apply to smaller companies otherwise. |
| Germany | 15.825% | No reduced small-business rate; municipal trade tax also applies, bringing the combined burden to roughly 30%. |
| Netherlands | 19% | 19% on the first €200,000 of taxable profit; 25.8% on profit above that. Applies to companies of all sizes. |
| United Kingdom | 19% | Small-profits rate on profits under £50,000; marginal relief tapers up to £250,000, then the 25% main rate applies. |
| Belgium | 20% | 20% on the first €100,000 of profit for qualifying small companies (including a minimum director’s remuneration condition); 25% above. |
| Finland | 20% | Flat rate; no separate small-business relief. |
| Sweden | 20.6% | Flat rate; no separate small-business relief. |
| Czechia | 21% | No reduced small-business rate; the 21% flat rate applies to companies of all sizes. |
| Denmark | 22% | Flat rate; no separate small-business relief. |
| Greece | 22% | No reduced corporate rate for small companies; the 22% flat rate applies. |
| Slovenia | 22% | No reduced small-business rate; a lump-sum (normirani) regime taxing 80%-deemed costs is available for very small businesses. |
| Austria | 23% | No reduced small-business rate; a minimum corporate tax applies to loss-making companies. |
| Italy | 24% | No general reduced rate; a conditional 20% “mini-IRES” applies where profits are reinvested and employment is increased. Very small operators may use the flat-rate forfettario. |