5 Most Tax-Friendly Countries in Europe

In this article, we discuss 5 most tax-friendly countries in Europe. If you want to read our detailed analysis of European tax policies and recent developments, go directly to read 15 Most Tax-Friendly Countries in Europe. 

5. Liechtenstein:

Corporate Income Tax Rate: 12.5%
Personal Income Tax Rate: 8%

Companies registered in Liechtenstein are subject to corporate income tax. The standard corporate income tax rate is 12.5%. However, companies engaged in specific activities, such as holding companies, may benefit from a reduced tax rate or tax exemptions. Its corporate tax remained unchanged since 2014. The country’s income tax rate is low at just 8% for those earning over 200,000 Swiss francs (CHF). Other taxes in Liechtenstein are also comparatively low, for example, the country has a value-added tax (VAT) of 7.7%.