Advantages of registering a company in Europe
The number of companies that foreigners open in Europe has been constantly increasing in recent years. This is due to many positive aspects. The first is the opportunity to work in a prestigious jurisdiction with access to the international market. Secondly, foreigners get tax minimization. However, the main advantage of opening a company in Europe is the ability to obtain a residence permit in Europe through business immigration. Let’s learn more about the benefits of opening a company in Europe.
Open a business in Europe and pay fewer taxes
Establishing the right corporate structure in a specific European country can save you money and your company money. After all, it is important to optimize the tax burden, and not evade taxes.
Expansion of business in the countries of the European Union and entry into the international market.
For a long time, foreign companies have given preference to cooperation with partners from more developed and economically stable countries that are not included in the “black” or “gray” lists.
Stable legal protection
Companies registered in Europe operate in an atmosphere of positive business reputation with the support of the state. Also in many European countries, there are special programs for the development of small and medium-sized businesses.
Register a company and open a bank account in Europe
It is well known that in recent years the requirements and procedures for opening accounts in European banks have become more stringent. Opening a bank account for an offshore company in Europe is almost impossible. Therefore, by deciding to register a company in Europe, you will get a real opportunity to open a bank account in Italy, Spain, Switzerland, Portugal, Cyprus, Malta, and other European countries.
Asset and capital protection
The creation of an effective corporate structure by obtaining the status of a tax resident is a common practice of protecting the assets of the company and the beneficiary.
Access to grants and programs for business development
In many countries, there are special programs for the development of startups, small and medium-sized businesses, as well as low lending rates.
Open a company in Europe and get a residence permit
Company registration in Europe is the backbone of business immigration. If certain legal conditions are met, an entrepreneur and his family can obtain a residence permit and take advantage of all the benefits of living in Europe.
Top 7 Best Countries for Company Registration in Europe
Below, we have highlighted the best countries for registering a business in terms of the economic stability of the jurisdiction, minimization of taxation, and quality of life.
Italy
Corporate tax is 24% and production tax is 3.9%.
VAT – 22%. Reduced rates: 4%, 5% and 10%.
Social insurance contributions – 30% of gross employee remuneration
Dividends – 1.2% / 26%
Cyprus
Corporate tax – 12.5%;
VAT – 19%, reduced rates – 9% and 5%;
Social security contributions per employee – 8.3% of wages
Dividends – 0%
Malta
Corporate tax – 35% (there are opportunities to reduce the income tax rate to 5%)
VAT – 18%, reduced rates – 7% and 5%;
Social security contributions per employee – 10% of wages
Dividends – 0%
Switzerland
Corporate tax – from 11.9% to 21.6%, depending on the location of the company.
VAT – 7.7%, special – 3.7%, reduced – 2.5%.
Social insurance contributions per employee – about 8% of wages + 0.17 to 13.5% industrial accident insurance
Dividends – 0%, 5%, 10%, 35%
Portugal
The corporate tax rate is 5% in Madeira or 21% is the rate on the Portuguese mainland.
VAT is a standard rate of 23% (22% in Madeira), an intermediate rate of 13% (12% in Madeira), and a reduced rate of 6% (5% in Madeira).
Social security contributions per employee – 23.75%
Dividends – 0% (Madeira)
Spain
Corporate tax is 25%. Newly created companies are taxed at a rate of 15% for the first and second tax periods in which they make a profit.
VAT – 21% 10%, 4%
Social security contributions – 29.9%
Dividends – 19%
Germany
Corporate tax is 15%, and then subject to a solidarity surcharge. As a result, the overall tax rate is 15.825%.
VAT – 19%. For the period of quarantine measures – 16%, 5%, 0%.
Social contributions to employee insurance – 20.5%
Dividends – 25%
