Denmark overtakes France as most high tax country in the EU

Denmark overtakes France as most high tax country in the EU
Denmark's tax agency is responsible for raising revenues for the government. Photo: Mads Claus Rasmussen/Ritzau Scanpix
Denmark has overtaken France to become the highest tax country in the European Union, according to a new comparison of tax rates across the bloc.

According to latest addition of Taxation Trends in the European Union, Denmark’s government in 2019 raised 46.1 percent of GDP in tax revenues, with a significant 1.8 percent rise that year pushing it ahead of France, which saw revenues fall 0-9 percent, on 45.5 percent.

According to the study, Denmark in 2021 also has the highest top rate of income tax at 55.9 percent, well ahead of the runner-up, Greece, on 54 percent, Belgium on 53 percent and Sweden on 52.3 percent.

“The largest gains were seen in Cyprus and Denmark, the largest decreases were registered in Belgium and in France and Sweden,” the authors wrote.

Denmark also has the highest share of direct taxes, with taxes on goods and services representing a full 66.5% of revenues.

In addition, most of Denmark’s welfare spending is financed out of general taxation.

This image from the report shows how Denmark’s total tax take was in 2019 ahead of all other EU countries. Source: DG Customs and Taxation.

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