Determining the country with the "lowest tax" in Europe is challenging, as tax systems are complex and vary greatly between countries. It depends on what specific tax you're referring to, such as income tax, corporate tax, or VAT.
However, based on overall tax burden, Bulgaria generally ranks among the countries with the lowest taxes in Europe. According to the OECD, Bulgaria had the lowest total tax revenue as a percentage of GDP in 2021.
Here are some factors to consider when comparing tax systems:
- Income tax: Countries like Romania, Bulgaria, and Czech Republic have relatively low personal income tax rates.
- Corporate tax: Ireland is known for its low corporate tax rate, attracting many multinational companies.
- VAT: Hungary, Romania, and Bulgaria have lower standard VAT rates compared to other European countries.
It's important to note that tax systems are constantly evolving, and these rankings can change over time.
