European taxation and capital investment

John Pointon, Suzanne Farrar, Jon Tucker

Research output: Contribution to journalArticlepeer-review


A simulated study is conducted of the relative tax incentives to capital investment in Europe. For 1994 required pre-tax rates of return vary from 8.5% for plant and machinery investments in Spain to 13.8% for commercial property in Ireland. Within investment categories, however, the spreads between countries are much narrower. After personal tax, the smallest tax disincentives are found in Italy (to invest in plant and machinery and commercial buildings) and the UK (industrial buildings). The largest disincentives occur in the Netherlands (to invest in plant and machinery and industrial buildings) and Ireland (with respect to commercial property).
Original languageEnglish
Pages (from-to)57-76
Number of pages20
JournalThe European Journal of Finance
Issue number1
Publication statusPublished - 14 Oct 1996
Externally publishedYes


  • Investment
  • Tax
  • Europe
  • Incentives
  • Capital


Dive into the research topics of 'European taxation and capital investment'. Together they form a unique fingerprint.

Cite this