WorldTax CompareAll Comparisons

Germany vs Bahamas
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇩🇪 Germany
vs
🇧🇸 Bahamas
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
0%
No income tax maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
10%
10% VAT maintained
No change

Corporate Tax Rate

Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025
0%
No CIT; Pillar Two compliance via domestic top-up
No change

Capital Gains Tax

Capital Gains Tax
25%
Investment income reform proposals under review
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
State, Regional & Local Taxes

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

🇧🇸 BahamasLocal Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax — making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Bahamas: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (14–45% vs 0%). 🇧🇸 Bahamas is more favourable for high earners.

🛒 VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 10%).

🏢 Corporate Tax: 🇧🇸 Bahamas offers a lower corporate rate (0% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇧🇸 Bahamas taxes investment gains at a lower rate (0% vs 25%), benefiting investors.

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