Tax in Europe · updated October 2026
Low-tax countries in Europe
10 European jurisdictions pass the Tax Atlas low-tax test: a top personal income tax rate of 25% or less, or no tax on foreign income. 1 of them charge no income tax at all. They are ordered by tax, then by quality of life.
The table
European countries with low personal tax
| Country | Top income tax | Capital gains | Corporate | Foreign income | Newcomer regime | Budget / month | Overall rank |
|---|---|---|---|---|---|---|---|
| MonacoMonaco | 0% | 0% | 25% | Exempt | – | $9,000 | #18 |
| Isle of ManDouglas | 21% | 0% | 0% | Worldwide | Tax Cap Election | $3,300 | #25 |
| BulgariaSofia | 10% | 10% | 10% | Worldwide | – | $1,600 | #36 |
| JerseySt Helier | 20% | 0% | 0% | Worldwide | – | $5,000 | #42 |
| GuernseySt Peter Port | 20% | 0% | 0% | Worldwide | – | $4,800 | #43 |
| AndorraAndorra la Vella | 10% | 10% | 10% | Worldwide | – | $3,200 | #31 |
| HungaryBudapest | 15% | 15% | 9% | Worldwide | – | $2,000 | #21 |
| GeorgiaTbilisi | 20% | 0% | 15% | Territorial | Small Business Status (1% regime) | $1,500 | #16 |
| GibraltarGibraltar | 25% | 0% | 12.5% | Worldwide | Category 2 Status | $4,000 | #32 |
| EstoniaTallinn | 22% | 22% | 22% | Worldwide | – | $2,300 | #45 |
Tax figures come from each country profile in the Tax Atlas dataset. Budgets are editorial estimates for one person in the main expat city, in US dollars. Overall rank is the position on the default best places to live ranking. Not tax or immigration advice: verify with a qualified adviser.
Before you choose
What the table does not show
- The headline rate is not the whole bill. Social security, local or municipal taxes and VAT can add a lot. Compare full profiles with the country comparison tool.
- Leaving can cost money. Your current country may keep taxing you, or charge an exit tax, after you move. Check the day counts and ties on the easiest tax residency list.
- High-tax Europe can still be cheap for newcomers. Several countries cut the rate for new residents for a fixed period. See high-tax countries with tax breaks.
- Want the whole region? The best places to live in Europe ranking scores every European jurisdiction on tax, cost, safety and healthcare together.
Questions
Frequently asked
Which European countries have the lowest taxes?+
Tax Atlas tracks 10 European jurisdictions with a top personal income tax rate of 25% or less, or no tax on foreign income: Monaco (0%), Isle of Man (21%), Bulgaria (10%), Jersey (20%), Guernsey (20%), Andorra (10%), Hungary (15%), Georgia (20%), Gibraltar (25%), Estonia (22%). The table on this page adds capital gains and corporate rates, newcomer regimes and monthly budgets.
Which European countries have no income tax?+
Monaco charges no personal income tax in the dataset. Residency usually requires genuine accommodation and, in some cases, significant wealth, so the cost of living is the trade-off.
Which European countries do not tax foreign income?+
Georgia tax local income but leave most foreign-source income alone (territorial or exempt treatment in the dataset). Conditions on remittances, domicile and what counts as foreign income differ, so verify with a qualified adviser.
Which high-tax European countries have tax breaks for newcomers?+
Ireland (Remittance Basis), Cyprus (Non-Dom Regime), Switzerland (Lump-Sum Taxation), Malta (Non-Domiciled Status), United Kingdom (Foreign Income & Gains (FIG) regime), Italy (Flat Tax for New Residents (HNWI)), Portugal (IFICI ("NHR 2.0")), Spain (Beckham Law (Special Inbound Regime)), Greece (50% Income Tax Reduction), Netherlands (30% Ruling (expat scheme)) have top rates above 25% but run a regime for new residents. Eligibility is strict and time-limited, so they are ranked separately on the high-tax countries with tax breaks page.
What is the cheapest low-tax country in Europe?+
By the Tax Atlas monthly budget for one person in the main expat city, the cheapest here are Georgia (about $1,500), Bulgaria (about $1,600), Hungary (about $2,000). Budgets are editorial estimates in US dollars, not official figures.
Which low-tax European countries are safest?+
On the Tax Atlas safety rating, the highest here are Monaco (92/100), Isle of Man (88/100), Jersey (88/100). The rating is an editorial composite for comparison, not an official index value.
More rankings
Best places to live for…
- Overall
- Remote workers
- Retirees
- Families
- Founders
- Investors
- On a budget
- High tax, with breaks
- Good healthcare, low tax
- Safest, low tax
- Tax-free retirement
- English-speaking, low tax
- Warm, low tax
- Cheap, low tax
- Europe
- Asia-Pacific
- The Americas
- Middle East & Africa
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