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Income tax in different countries of Europe in 2019: where to do business more profitable?

2019-01-09

As a result of some changes, which arose in 2018 in the world, the activities of classical offshore organizations in different countries have been changed. Exchange of information about taxes, the introduction of sanctions measures, changes in the rules for opening accounts - all this forced businessmen to transfer their business to low-tax, but at the same time respectable countries.

In which countries of Europe are low taxes

Many entrepreneurs have recently been particularly interested in transferring their business to those jurisdictions that are characterized by reduced tax rates. Most of the jurisdictions listed below are distinguished by the ability to comfortably conduct business, countries have a convenient tax environment.

In which jurisdictions are the lowest tax rates:

• Hungary. Corporate tax rate is 9%. For non-residents, the fee is minimal - it is necessary to pay interest for income received in the jurisdiction;
• Andorra. Corporate tax rate - 10%. When registering a business in a given country, it is important to bear in mind that the jurisdiction did not enter into an agreement to avoid double taxation;
• Montenegro. Companies operating in a jurisdiction must pay a tax of 9% on profits. Non-residents should pay a fee for income received within the country;
• Croatia. The income tax rate is 18%, but if the firm’s income does not exceed about 400,000 euros, a lower rate of 12% can be applied;
• Lithuania. The corporate tax rate is 15%. However, some companies may pay a preferential interest subject to certain requirements, which does not exceed 5%.
• Liechtenstein. Pay a fee required for the net profit of the organization. The minimum tax is about 1600 euros. However, this payment is not required to pay if the assets of the company are not more than 500,000 francs. All corporations and funds are taxed at a rate of 12.5%;
• Ireland. When registering should take into account the need to pay corporate tax - 12.5%. In addition, it may be necessary to pay a fee for passive income of 25%, it is acceptable to income from activities that are outside jurisdiction, as well as income derived from the sale of land, mining;
• Estonia. Retained earnings will not be taxed. The fee for distributed profits - 20%. Since last year, firms that regularly distribute profits can pay a tax of 14%.

To register an organization in the EU, please contact our IT - OFFSHORE specialists. Our lawyers will answer your questions and help you gather the necessary documentation for starting a business.

Advantages of starting a business in Europe

Transferring a company abroad to another country is a demanded procedure. When choosing a region, you should take into account tax rates, the need to bear other expenses, as well as the advantages of the country for business development.

Advantages of opening a company in the EU jurisdiction:

• Ability to find solvent customers for the sale of goods or services;
• Regulated legislation;
• Transparent taxation;
• Ability to enter the international market.

To register a company you will need to collect a significant set of documents, which may vary depending on the country chosen. When determining the state for organizing a business, a preliminary analysis of the market, the company's potential should be carried out, and all risks should be assessed.