The advantages of starting a business in Europe

The most important advantage of starting a business in Europe is the ability to access the EU single market. On a global level, it is the largest international single market and it functions based on a single currency and harmonized regulations. Moreover, citizens of member states can move freely between countries, an advantage for those investors who are also considering acquiring residency. The most important advantages of doing business in Europe are highlighted below.

Taxation benefits

Some countries in the European Union offer very attractive taxation regimes. For example, investors who open a company in Romania can benefit from one of the lowest tax rates for companies, at only 1% or 3% for qualifying businesses (micro-companies with at least one employee for the 1% rate).

Other countries that have a low corporate income tax rate are Hungary (9%), Ireland (12.5%) and Lithuania (15%) with a possible tax exemption for micro-companies under certain conditions.


A diverse market

The European Union covers a significant area and has a very large combined population. This means that business owners have approximately 500 million potential customers. While prices are adjusted according to region, investors can still access diverse categories of consumers and target their products accordingly.

Harmonized legislation

The EU has harmonized standards throughout its member states. This allows for the reduction of trade barriers and for the introduction of EU legislation throughout the national legislation of all member states. There are various policies for the aid of small and medium companies and these companies can benefit from easy access to funding.

Ease of doing business

Some countries in the EU have simplified company formation procedures. Investors who open a company in Ireland, the Netherlands or Denmark will find that the process is simplified and many bureaucratic procedures have been eliminated. What’s more, full foreign ownership is permitted in EU countries, thus foreign investors are allowed to own 100% of the businesses they open.

These are only part of the advantages investors can expect when starting a business in Europe. We recommend exploring business opportunities in various EU countries and starting a business in a jurisdiction that offers the most suitable company regime.




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