vs
United Kingdom vs Germany Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
United Kingdom45%
Germany45%
Corporate Tax
United Kingdom25%Lower
Germany30%
Capital Gains
United Kingdom20%Lower
Germany26.4%
VAT / Sales Tax
United Kingdom20%
Germany19%Lower
| Category | United Kingdom | Germany |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 45% | 45% |
| Corporate Tax | 25% | 30% |
| Capital Gains | 20% | 26.4% |
| VAT / Sales Tax | 20% | 19% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 130 | 95 |
| Currency | GBP | EUR |
The bottom line: United Kingdom vs Germany
United Kingdom has the lower headline rate on 2 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. United Kingdom runs a progressive tax system, while Germany uses a progressive one. United Kingdom has the wider tax-treaty network (130 agreements), which can reduce withholding tax on cross-border income.
- Income tax: identical in both (45%)
- Corporate tax: United Kingdom is lower (25% vs 30%)
- Capital gains tax: United Kingdom is lower (20% vs 26.4%)
- VAT / sales tax: Germany is lower (20% vs 19%)