Taxation Trends in the European Union

The overall tax-to-GDP ratio, meaning the sum of taxes and social contributions in % of GDP, in the EU272 stood at 38.8% in 2011, from 38.3% in 2010 and 38.4% in 2009. The overall tax ratio in the euro area (EA17) increased to 39.5% in 2011, up from 39.0% in 2010 and 39.1% in 2009. The tax burden varies significantly between Member States, ranging in 2011 from less than 30% in Lithuania (26.0%), Bulgaria (27.2%), Latvia (27.6%), Romania (28.2%), Slovakia (28.5%) and Ireland (28.9%), to more than 40% in Denmark (47.7%), Sweden (44.3%), Belgium (44.1%), France (43.9%), Finland (43.4%), Italy (42.5%) and Austria (42.0%).

Between 2010 and 2011, the largest increases in tax-to-GDP ratios were recorded in Portugal (from 31.5% to 33.2%), Romania (from 26.7% to 28.2%) and France (from 42.5% to 43.9%), and the highest falls in Estonia (from 34.1% to 32.8%), Sweden (from 45.4% to 44.3%) and Lithuania (from 27.0% to 26.0%).

Source: European Commission