vs
Germany vs Israel Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Germany45%Lower
Israel50%
Corporate Tax
Germany30%
Israel23%Lower
Capital Gains
Germany26.4%
Israel25%Lower
VAT / Sales Tax
Germany19%
Israel18%Lower
| Category | Germany | Israel |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 45% | 50% |
| Corporate Tax | 30% | 23% |
| Capital Gains | 26.4% | 25% |
| VAT / Sales Tax | 19% | 18% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 95 | 58 |
| Currency | EUR | ILS |
The bottom line: Germany vs Israel
Israel has the lower headline rate on 3 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Germany runs a progressive tax system, while Israel uses a progressive one. Germany has the wider tax-treaty network (95 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Germany is lower (45% vs 50%)
- Corporate tax: Israel is lower (30% vs 23%)
- Capital gains tax: Israel is lower (26.4% vs 25%)
- VAT / sales tax: Israel is lower (19% vs 18%)