Savings · All countries
Savings interest tax in Europe: what you keep in 11 countries
Bank interest is taxed very differently across Europe. On €1,250 of interest, for example €50,000 at 2.5%, you pay nothing in the Netherlands or on a French Livret A, but over €400 in Ireland. Here is what you keep in each country in 2026.
The comparison
| Country | How interest is taxed | Tax on €1,250 | You keep |
|---|---|---|---|
| Netherlands | Box 3 on wealth above €59,357, not on interest | €0 (on €50,000) | €1,250 |
| France (Livret A, LDDS) | Tax-free regulated accounts | €0 | €1,250 |
| UK (basic-rate taxpayer) | £1,000 savings allowance, then 20%; ISAs tax-free | £0 on £1,000 | £1,000 |
| Belgium (regulated account) | First €1,020 tax-free, then 15% | €35 | €1,215 |
| Germany | €1,000 allowance, then 26.375% | €66 | €1,184 |
| Spain | Savings scale from 19% | €238 | €1,012 |
| Poland | Flat 19% (Belka tax) | €238 | €1,012 |
| Austria | Flat 25% (KESt) | €313 | €937 |
| Italy | Flat 26% | €325 | €925 |
| Portugal | Flat 28% | €350 | €900 |
| France (normal account) | Flat tax 31.4% | €393 | €858 |
| Ireland | DIRT 33% | €413 | €838 |
2026 rules, one person, no other savings income. Germany without church tax. The Netherlands figure assumes €50,000 in the bank and no other assets; with €100,000 box 3 would cost about €187. Polish interest is taxed in złoty; the figure is shown in euros for comparison.
Three ways countries tax savings
- Flat withholding tax. Most countries, including Austria, Italy, Portugal, Poland and Ireland, have the bank take a fixed percentage before paying you. You usually do not need to do anything.
- An allowance, then a flat tax. Germany, Belgium and the UK let you earn some interest tax-free. In Germany you must give your bank an exemption order (Freistellungsauftrag), or it withholds tax from the first euro.
- A tax on wealth instead of interest. The Netherlands taxes an assumed return on everything you own above the tax-free amount, whatever the bank actually pays. See our guide to box 3.
Tax-free options worth knowing
- France: Livret A (up to €22,950) and LDDS (up to €12,000) are free of tax and social charges.
- UK: ISAs let you save up to £20,000 a year with no tax on the interest. The cash ISA limit is due to fall to £12,000 for under-65s from April 2027.
- Belgium: regulated savings accounts give the €1,020 exemption, per person.
- Germany: couples filing jointly get a €2,000 allowance.
Savings abroad
If you keep an account in your home country, you are normally taxed on its interest where you live now. Banks in the EU report accounts of foreign residents to their home tax authorities automatically, so declare foreign interest in your tax return. Tax withheld abroad can often be credited under a tax treaty.
Calculate tax on your interest →
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email contact@expatcents.com.