European Union loses 60 billion euros annually to tax havens

European Union member states lose approximately 60 billion euros in tax revenue every year due to multinational corporations transferring profits to tax havens with lower tax rates. According to an analysis by the Tax Justice Network, these practices allow large corporations to declare profits in favorable jurisdictions rather than in the countries where their actual economic activity occurs.

France and Germany face the largest losses, losing roughly 13.1 billion euros and 11.8 billion euros annually, respectively. Together, these two nations account for 42 percent of the total EU losses. Other significant losses are reported in Spain (4.8 billion euros), Poland (4.7 billion euros), Belgium (4.1 billion euros), Italy (3.6 billion euros), and the Netherlands (3.5 billion euros).

A substantial portion of these losses, approximately 8 billion euros, is linked to British territories serving as tax havens, including the British Virgin Islands, the Cayman Islands, and Bermuda. While the OECD notes that many of these practices are not illegal, they damage tax systems and reduce state budget revenues. The United Kingdom also faces significant losses, estimated at 14.7 billion euros per year, as multinational companies transfer profits to various global tax havens.