Where are the lowest taxes in Europe? (TOP Countries)

The question of where the lowest taxes in Europe are in 2020 is relevant for many wealthy people who want to preserve their earned capital. The EU has a number of countries with special tax burdens that have minimal or no separate taxes.

Features of tax payment in Cyprus

Low taxes in Europe apply in Cyprus. To attract investors and foreign entrepreneurs, the country offers an attractive tax system. For example, the profit tax is 12.5%, which is one of the lowest rates in the EU.

The jurisdiction introduced the resident status for foreign investors, according to which, it is required to stay in Cyprus at least 2 months annually. This status eliminates the need to pay tariffs for dividends, interest, etc.

Pluses of taxation in Malta

In Malta it is profitable to keep assets and open companies, as the authorities have developed special regimes for foreign businesses. The peculiarity of the regime is the possibility of a refund of some of the taxes paid.

According to the laws of the country, there is a special taxation regime for businesses that operate off the island. If the conditions are met, it is possible to receive a return of up 6/7 of the corporate tax paid.

Pluses of tax assessment in Denmark

Despite the fact that Denmark is considered a highly taxed country, it is possible to optimize the payment of fees. The most popular optimization strategy is opening a tax-free holding company. The advantage of doing business in the country is that Denmark has concluded agreements on avoiding double taxation with many countries.

The use of Danish holdings in the schemes of legal tax optimization is relevant and no capital levy, there is no need to make tax payments to increase the share capital and no taxes when a non-resident sells ApS shares. There are no stamp duties, and in some cases liquidation of companies is not subject to levies.

Specifics of taxation in Estonia

Estonia has a developed digital infrastructure. Almost all business-related processes there can be performed remotely. Besides, it is profitable to develop entrepreneurship in the country, as there are many tax advantages.

There is no tax on undistributed profits. The rate of corporate tax on distributed profits is 20% while the reduced tariff is 14%. It is possible to apply a reduced VAT rate of 0% and 9%. The state has signed an agreement on avoidance of double taxation with a number of countries.

Tax rates in Lithuania

One of the main tax advantages is the 15% profit tax, but it is possible to use the benefits for companies with no more than 10 employees and an income of fewer than 300,000 euros per year. There is no interest tax, and the country has signed a double taxation avoidance agreement with 56 countries, including Russia.

The use of special tax systems allows optimizing costs. To receive a consultation on the choice of the country with the lowest tax rates, please contact our experts at IT-OFFSHORE.