Which EU country has the lowest corporate tax rate?

Lowest standard corporate rates in the EU

• Hungary — 9% (lowest standard rate in the EU)
• Bulgaria — 10%
• Ireland — 12.5% on trading income

For comparison, larger EU economies sit much higher: Germany has a 15% federal corporate rate (rising materially once trade tax and the solidarity surcharge are added), and the Netherlands applies 25.8%.

Context

Hungary’s flat 9% headline rate is the lowest standard corporate income tax in the bloc. Bulgaria follows at 10% with a similarly flat structure. Ireland’s 12.5% rate applies to active trading income and has been the cornerstone of its long-standing position as a corporate hub.

Note that the EU now applies the OECD Pillar 2 minimum tax: large multinational groups (consolidated revenue of €750 million or more) face a 15% effective minimum, which narrows the practical advantage of sub-15% headline rates for the biggest companies. Smaller and domestic businesses still benefit fully from these low statutory rates.

Data basis: Government tax authority data via taxesmap.app, as of 2026