Best Countries for Online Business in Europe – Taxes, Regulations, Residence Permits

Best Countries for Online Business in Europe

00:00 What makes a country good for online business
03:20 Cyprus
04:38 Estonia
06:08 Lithuania
07:02 Romania
07:59 UK
09:04 Bulgaria
09:55 Czech Rep

What makes a country good for online business

Low taxes
Low bureaucracy
Easy access to large markets
Low overhead
Good logistics

Cyprus

Cyprus is famous on online forums among European citizens and business people willing to get an ultra low tax solution both as individuals as well as for their business operations.
It is easy to understand why, as Cyprus has some of the lowest tax rates in the continent, but at the same is a full European Union member and uses the euro as its currency.
Currently the corporate income tax in Cyprus is 12.5% a rate comparable to Ireland, another attractive country for similar purposes.
Cyprus also has a number of residence by investment programs, and for individuals, you can even live tax free in Cyprus if your income comes from investment capital gains, for example.

Estonia

Estonia has definitely done its homework when it comes to marketing itself as a great tech hub in the European Union.
While taxes are definitely not the lowest in Estonia, the country still offers a number of advantages if you want to start or move your online business to the country.
One of the most critical advantages of Estonia is that you won’t lose much time with bureaucracy or compliance.
Estonia’s business regulations are extremely simple and effective, so it is easy to understand what the government wants from you in terms of licenses or taxes. This way you can focus on the business and make it grow.
Currently Estonia’s corporate income tax is 20%, but you can defer taxes, if your reinvest the capital in the company and don’t distribute it as dividends. In some cases if you meet some requirements, CIT can be even lower.

Lithuania

A little bit south of Estonia we have Lithuania, another fast growing Baltic country.
Similarly to Estonia it is a highly efficient country in terms of government bureaucracy and compliance.
A lot of tech start-ups choose Lithuania for that reason. Similarly to Estonia it also has more flexible regulations for financial related companies. Such as payment processors and digital money remittance companies.
Small companies that earn less than EUR 300,000 in gross annual revenues can benefit from a reduced CIT rate of 0% for the first year, and then 5% in the following years as long as the requirements are met.

Romania

Romania is a great country to start, or to move your online business to.
First of all Romania has a very low cost of living and one of the fastest internet speeds in the world.
Moreover its cost of living is among the lowest in the European Union. If you need to hire staff, salaries in Romania are also much lower than in Western Europe, so your company overhead will definitely be much lower in Romania than in most countries in Central or Western Europe.
On top of that, Romania has an extremely favorable tax system for online business.

UK

UK is another country which is still one of the best in the world to run your online business at. Even after Brexit, the country’s advantages for online businessmen are still far greater than its disadvantages.
UK has a tradition of being a pro-business country and it really shows. As a matter of fact leaving the EU allows UK to have more freedom and be an even more pro-business country than when it had to follow all the strict regulations imposed by Brussels.
Especially if you are a freelancer like a software developer dealing with global clients, having your online business based out of the UK can be really helpful.

Bulgaria

Bulgaria is another country that I would definitely recommend if you are doing online business.
Bulgaria is simply the most affordable country in Europe when it comes to hire staff. Low costs are also the case if you need to hire office space.
Since Bulgaria is a member of the European Union, you can easily access the bloc’s market with a minimal cost.
Similarly to Romania, Bulgaria is an excellent place to run your online business if keeping your business costs low is a priority.
On top of that, Bulgaria is still home to some of the most inviting tax systems for corporations in the European Union. Bulgaria currently has a corporate income tax of 10%.

Czech Republic

The Czech Republic is the last country in today’s list but it doesn’t mean it is not a great option. As a matter of fact, if we consider the quality of life, taxes and the country’s location, it is one of the best to start or move any type of online business.
One of the best options of the Czech Rep is that non-EU freelancers can establish themselves in the country relatively easily, especially if they come from a visa exempt country like the US or the UK.
There is a popular residence permit category for freelancers which is ideal if you run your online business as a consultant, a blogger, and affiliate marketer, or an influencer.

Leave a Reply

Your email address will not be published.