2026 Corporate Tax & VAT,
Compared Across 36 Jurisdictions
Headline corporate income tax and standard VAT for every jurisdiction ARM covers — sortable, searchable, and current as at June 2026.
Across the 36 jurisdictions below, 2026 headline corporate income tax ranges from 0% on retained earnings (Estonia, Latvia) and 9% (UAE, Hungary) up to roughly 30% (Germany), while standard VAT runs from 5% (UAE) to 27% (Hungary). The table is sortable and searchable; every row links to a full, sourced guide for that jurisdiction.
UAE & Hungary · *0% on retained earnings (EE, LV)
United Arab Emirates
Hungary
| Jurisdiction | Common entity | Corporate tax | VAT | Region | Guide |
|---|---|---|---|---|---|
| United Arab Emirates | LLC / Free Zone | 9% | 5% | Middle East · GCC | View → |
| Saudi Arabia | LLC | 20% | 15% | Middle East · GCC | View → |
| United Kingdom | Ltd | 19–25% | 20% | Western Europe | View → |
| Netherlands | B.V. | 19–25.8% | 21% | Western Europe | View → |
| France | SAS / SARL | 25% | 20% | Western Europe | View → |
| Germany | GmbH | ~30% | 19% | Western Europe | View → |
| Belgium | BV / SRL | 25% | 21% | Western Europe | View → |
| Switzerland | GmbH / AG | 12–21% | 8.1% | Western Europe | View → |
| Italy | S.r.l. | ~28% | 22% | Western Europe | View → |
| Spain | S.L. | 25% | 21% | Western Europe | View → |
| Portugal | Lda | 20% | 23% | Western Europe | View → |
| Estonia | OÜ | 0 / 22% | 24% | Northern Europe | View → |
| Sweden | AB | 20.6% | 25% | Northern Europe | View → |
| Finland | Oy | 20% | 25.5% | Northern Europe | View → |
| Norway | AS | 22% | 25% | Northern Europe | View → |
| Denmark | ApS | 22% | 25% | Northern Europe | View → |
| Latvia | SIA | 0 / 20% | 21% | Northern Europe | View → |
| Lithuania | UAB | 17% | 21% | Northern Europe | View → |
| Poland | Sp. z o.o. | 19 / 9% | 23% | Central Europe | View → |
| Czech Republic | s.r.o. | 21% | 21% | Central Europe | View → |
| Slovakia | s.r.o. | 10–24% | 23% | Central Europe | View → |
| Hungary | Kft. | 9% | 27% | Central Europe | View → |
| Austria | GmbH | 23% | 20% | Central Europe | View → |
| Slovenia | d.o.o. | 22% | 22% | Central Europe | View → |
| Romania | SRL | 16% / 1% | 21% | Southeast Europe | View → |
| Bulgaria | EOOD | 10% | 20% | Southeast Europe | View → |
| Croatia | d.o.o. | 10 / 18% | 25% | Southeast Europe | View → |
| Serbia | d.o.o. | 15% | 20% | Balkans & Türkiye | View → |
| Montenegro | d.o.o. | 9–15% | 21% | Balkans & Türkiye | View → |
| North Macedonia | DOO | 10% | 18% | Balkans & Türkiye | View → |
| Albania | SHPK | 0 / 15% | 20% | Balkans & Türkiye | View → |
| Turkey | Limited Şirket | 25% | 20% | Balkans & Türkiye | View → |
| Greece | IKE | 22% | 24% | Mediterranean | View → |
| Cyprus | Ltd | 15% | 19% | Mediterranean | View → |
| Malta | Ltd | 35% / 5% | 18% | Mediterranean | View → |
| Georgia | LLC | 15% | 18% | Caucasus | View → |
Rates shown are headline figures and shorthand (for example, "0 / 22%" denotes a distributed-profit system where retained earnings are untaxed; "35% / 5%" denotes a headline rate with an effective rate after refunds). Several rates are mid-transition in 2026. Always confirm the current figure and your specific position in the linked guide, which cites each jurisdiction's tax authority.
Frequently asked questions
Which country has the lowest corporate tax in 2026?
Among these 36 jurisdictions, the UAE and Hungary have the lowest headline corporate tax at 9%. Estonia and Latvia effectively charge 0% on retained (reinvested) profits, taxing only distributed profits at around 20–22%. Bulgaria applies a 10% flat rate.
Which country has the lowest VAT?
The UAE (5%) and Switzerland (8.1%) have the lowest VAT in this set. Within the EU, Malta (18%), then Cyprus and Germany (19%) are among the lowest.
Which countries do not tax retained earnings?
Estonia and Latvia operate a distributed-profit tax system: profits kept inside the company are taxed at 0%, and corporate tax (around 20–22%) is only due when profits are distributed.
What is Cyprus's corporate tax rate in 2026?
15% from 1 January 2026, raised from 12.5% to align with the OECD Pillar Two minimum — still among the lowest in the EU, with no withholding tax on outbound dividends.
Is Malta's corporate tax really 5%?
Malta's headline rate is 35%, but a shareholder refund of 6/7ths on trading income can bring the effective rate to about 5%. It requires correct structuring and is increasingly scrutinised under CFC and substance rules.
Which country has the highest VAT?
Hungary has the highest VAT in this set at 27%, followed by Finland at 25.5% and Sweden, Norway, Denmark and Croatia at 25%.
This comparison is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rates and rules change, and several are mid-transition. Confirm against the relevant tax authority, or with an advisor, before acting.
Choosing where to establish?
ARM Management advises international companies and investors on jurisdiction selection, formation and ongoing tax compliance across all 36 markets above. Begin with a confidential conversation.