WorldTax CompareAll Comparisons

Germany vs Bhutan
Tax Rate Comparison

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

🇩🇪 Germany
vs
🇧🇹 Bhutan
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
0–25%
25% top; crypto mining revenues adding to national income
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
0%
No VAT; GST consideration ongoing
No change

Corporate Tax Rate

Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025
30%
30% CIT; digital economy and hydropower growing
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
~10%
NPPF; pension adequacy improving
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.

🇧🇹 BhutanDzongkhag & Thromde Taxes

Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.

⚠️ 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 Bhutan: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (14–45% vs 0–25%). 🇧🇹 Bhutan is more favourable for high earners.

🛒 VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 0%).

🏢 Corporate Tax: 🇩🇪 Germany offers a lower corporate rate (29% vs 30%), which can influence business location decisions.

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

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