Bosnia and Herzegovina vs Finland
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ง๐ฆ Bosnia and Herzegovina โ Entity & Cantonal Taxes
Bosnia and Herzegovina has one of the most fragmented tax systems in the world due to its Dayton Agreement structure. The two entities โ Federation of BiH (FBiH) and Republika Srpska (RS) โ have separate income tax, and FBiH further divides into 10 cantons that set their own rates. RS has a flat 10% income tax. FBiH has a 10% flat tax at the entity level but cantons add surtaxes of 0%โ30% of the income tax. Brcko District has its own tax administration. VAT and customs are administered federally.
๐ซ๐ฎ Finland โ Municipal Income Tax
Finland's 309 municipalities set their own income tax rates (municipal tax) ranging from ~16.5% to ~22.5%, averaging ~20%. This is added to the national progressive income tax. The church tax of 1%โ2.2% applies to members. No regional income tax. The 'solidarity tax' on high earners (2%) applies nationally. Municipalities also levy real estate tax on property owners. The welfare state is heavily funded by these high combined tax rates.
Bosnia and Herzegovina vs Finland: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ซ๐ฎ Finland has a higher top income tax rate (10โ13% vs ~44โ51.4%). ๐ง๐ฆ Bosnia and Herzegovina is more favourable for high earners.
๐ VAT/Sales Tax: Finland has a higher consumption tax (17% vs 10โ25.5%).
๐ข Corporate Tax: ๐ง๐ฆ Bosnia and Herzegovina offers a lower corporate rate (10% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ฆ Bosnia and Herzegovina taxes investment gains at a lower rate (10% vs 34%), benefiting investors.