Thu. Nov 21st, 2024
EU and euro area tax-to-GDP ratio
EU and euro area tax-to-GDP ratio. Source: Eurostat

Luxembourg, 31 October 2024

The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 40.0% in the EU in 2023, a decrease compared with 2022 (40.7%). In the euro area, the tax-to-GDP ratio also decreased from 41.4% in 2022 to 40.6% in 2023.

In absolute terms, in 2023, revenue from taxes and social contributions increased by €308 billion in the EU compared with 2022, to stand at €6 883 billion.

This information comes from data on taxation published by Eurostat today. This article presents some findings from the more detailed  Statistics Explained article.

Highest tax-to-GDP ratio in France, Belgium and Denmark

The tax-to-GDP ratio varied significantly between EU countries in 2023, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in France (45.6%), Belgium (44.8%) and Denmark (44.1%).

At the opposite end of the scale, Ireland (22.7%), Romania (27.0%) and Malta (27.1%) registered the lowest ratios (Source dataset: gov_10a_taxag).

Largest increases of tax-to-GDP ratios in Cyprus and Luxembourg

In 2023, compared with 2022, the tax-to-GDP ratio increased in 11 EU countries, with the largest increases being observed in Cyprus (from 35.9% in 2022 to 38.8% in 2023) and Luxembourg (40.2% in 2022 and 42.8% in 2023).

In contrast, decreases of more than 0.1 percentage points of GDP were recorded in 12 EU countries, with the largest decreases noted in Greece (from 42.8% in 2022 to 40.7% in 2023) and France (from 47.6% in 2022 to 45.6% in 2023) (Source dataset: gov_10a_taxag).

More information
Methodological notes

The aggregate data series for the euro area commented on in this article refers to EA20: Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.

Source – Eurostat

 

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