Lowest personal and corporate taxes in the EU for foreign entrepreneurs

Published at: 13/11/2023 12:28 pm

Portugal and Italy recently increased their burden on foreigners, and Bulgaria became the country with the lowest personal taxes in the EU. 

If you wish to move to the European Union to start or continue your business, you have personal and professional reasons to decide which member state fits you the best.

The personal preference is that you have your plan, which country you like the most. You can enjoy the lights of Paris, the mild climate of Greece or the parties of Budapest or Prague. But business-wise, there are other circumstances, such as the ease of registering your business and, for sure, the importance of your corporate and personal taxes. 

Regarding corporate taxes, Hungary (9 per cent), Ireland (12.5 per cent), and Lithuania (15 per cent) have the lowest corporate income tax rates. On average, European OECD countries levy a corporate income tax rate of 21.5 per cent. However, Malta still has a tremendous and almost offshore scheme. Practically, the foreign-sourced income tax can be only 5%.

Income taxes in Europe are generally high, but there are, better to say, some great incentives. Portugal's NHR (non-habitual resident) incentive was a magnet for those who could work in Portugal and receive their income from abroad. However, the government intended to close the program due to social reasons. However, the prime minister of Portugal resigned due to a severe corruption case, and the legislators decided to keep the NHR for at least one more year. Now, Bulgaria offers the lowest personal income tax at 10% in the European Union. But Malta again has a better solution, as foreign-sourced income for non-regular residents is tax-exempt. Hungary provides a 15% flat personal income tax rate, which is one of the best you can reach in the EU.

Discus Holdings Ltd's headquarters is in Malta's capital, and our company has vast experience in Hungary. Ask our colleagues for a consultation, and let us help you plan your taxes in Europe. Only decide to choose your European dream destination after examining all the aspects; taxes are more important than you believe. Remember that state burdens are very strict in the Union; it is better to ask for professional help.


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