TYPOLOGY OF LOCAL TAXATION MODELS IN EUROPE: FINANCIAL AND LEGAL ASPECT
DOI:
https://doi.org/10.32782/ehrlichsjournal-2026-17.02Keywords:
taxes, tax law, tax legislation, taxation, tocal taxes and fees, tocal self-government, tocal taxation models, tax autonomy, taxing powers, fiscal decentralizationAbstract
The article provides a financial and legal analysis of approaches to shaping local taxation models in European states. It examines the role of local taxes and fees in the public finance system as a tool for ensuring the financial independence of local self-government bodies and implementing the principles of decentralisation and subsidiarity. The study substantiates that local taxation serves not only as a revenue source for local budgets but also as a legal mechanism for delineating financial powers between levels of public authority. Furthermore, it reveals the impact of the European Charter of Local Self-Government provisions on the development of national local taxation systems. The main principles of modern European models are identified: financial autonomy, subsidiarity, the adequacy of financial resources relative to the scope of powers, the balance of public and private interests, and the combination of tax independence with state coordination mechanisms. Based on legal, administrative, and institutional criteria, a typology of European local taxation models is proposed, distinguishing the Scandinavian, Continental European, Latin, and Anglo-Saxon models. Their specific features regarding the structure of local revenues, the level of tax autonomy, the ratio between own tax revenues and transfers, and financial equalisation mechanisms are analysed. It is established that the Scandinavian model is characterised by a high level of fiscal decentralisation; the Continental European model combines tax autonomy with centralised regulation; the Latin model is based on a significant role of state regulation and transfer funding; and the Anglo-Saxon model relies predominantly on property taxation. The provisional nature of the proposed typology is emphasised. The article concludes that a common trend in the development of European local taxation systems is the expansion of the tax autonomy of territorial communities while maintaining the integrity of the national tax system. Finally, the expediency of utilizing European experience to improve the financial and legal foundations of local taxation in Ukraine is substantiated
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