#TAXES & TAXATION
“France, last for its companies?” Yes — but on one precise point: TAXATION. According to the Tax Foundation's 2026 Tax Competitiveness Index, France ranks last of the 38 OECD countries (45.7/100). Not to be confused with “the least-performing” or “least profitable” economy.
Published on November 4, 2026 · to be rechecked on May 31, 2027
The Tax Foundation, a US free-market think tank, publishes an annual International Tax Competitiveness Index. 2026 edition: France is 38th of 38 OECD countries, with 45.7/100 (45.8 in 2025, already last) — no country scores lower. The heaviest point: the top corporate profit tax rate reaches 36.1% including surtaxes, the highest in the OECD. Topping the ranking: Estonia (100 points, 1st for the 13th year), ahead of Latvia (92.5) and New Zealand (88.2). BUT this index is not an overall verdict on the French economy: it rewards low, simple taxes and ignores the public services those taxes fund. And France keeps real strengths: a 30% research tax credit (CIR), a network of 123 tax treaties, 13th on international tax rules — and above all, it remains the No. 1 destination for foreign investment in Europe (EY 2026 barometer, 7th year running, ahead of the UK and Germany).
So France is the worst country to do business?
No. The index measures taxation (the level and complexity of corporate taxes), not profitability, overall attractiveness, or the quality of infrastructure and workforce. Proof: France can be last on this tax index while, the same year, remaining Europe's No. 1 destination for foreign investment (EY barometer). Two different measures.
In other words: “last for tax competitiveness” means: here, corporate tax is among the heaviest and most complex in the OECD. It says nothing about what that tax funds, or about companies' actual performance.
Four caveats that belong with the number
- The index measures TAXATION, not profitability or economic health: a low score does not mean “a bad economy”.
- It is a free-market think tank's ranking (Tax Foundation): its method rewards low, simple taxes and ignores the public services those taxes fund.
- The real weak point: a top corporate tax rate of 36.1% (incl. surtaxes), the highest in the OECD — but France keeps strengths (30% CIR, 123 tax treaties).
- The same year, France remains Europe's No. 1 destination for foreign investment (EY 2026): tax ranking ≠ attractiveness.
Why it still matters: for reading the tax debate: when a ranking says “France is last”, always ask “last at WHAT, exactly?”. Here it is corporate taxation (heavy and complex), not profitability or attractiveness. The real issue: these taxes weigh on competitiveness but also fund a social model — a political trade-off, not just a “bad grade”.
For you
- Between “the heaviest taxation” and “the least-performing economy”, do you see why they are not the same?
- A high corporate tax: a competitiveness handicap, the price of a social model… or both?
Sources: 2026 International Tax Competitiveness Index, Tax Foundation; via Cryptoast (28 October 2026). Attractiveness context: EY France Attractiveness barometer 2026 (21 May 2026).
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