Europe has one of the most advanced economies in the world. Aside from being a choice destination for investors, tourists, and newlyweds, it is one of the most peaceful continents on Earth.
Great quality of life also comes with tremendous tax burdens, even for expats. Lucky for you, there are great places in Europe that are popular for their low tax rates.
Tax havens are all over the EU and have been known to eliminate taxes and allow expats to enjoy a long, peaceful, and tax-free stay.
By region, Europe has the lowest corporate tax rate on Earth at just 19.35%.
The United Arab Emirates (UAE) holds the title of having the highest corporate tax rate in the world [55%]. After the UAE, Brazil (34%), Venezuela (34%), France (31%), and Japan (30.62%) also top the list.
In this guide, we will unveil some of the most developed countries in Europe with low tax rates.
These countries in this list do not just have low tax rates, they also boast of a stable economy, low unemployment rates, and affordable quality of life.
Low-tax countries in Europe for expats and businesses
Truth be told, Europe is a beautiful and peaceful place to live. To fully enjoy life in Europe, you have to be able to spend your money and enjoy life without having to worry about taxes.
These are by far the most developed European countries with the lowest tax rates in 2021.
Bulgaria has one of the lowest tax rates across Europe. Both corporate and personal taxes sit at a flat 10% rate. Even expats can reside in the country for up to 183 days in a calendar year before they are considered tax residents.
Aside from offering one of the lowest tax rates in Europe, Bulgaria also has a lot of business-friendly policies that allow SMEs and startups to start and scale their business without breaking their bank or wearing out.
International businesses are eligible for special tax treatments once they establish their EU base in Bulgaria. Corporate and personal bank account is also super easy to create and manage.
Needless to say, Bulgaria is one of the best countries to live in Europe if you want to enjoy your stay and spend as much as you like without having to worry about taxes.
Located close to the southern tip of Spain, Gibraltar is a British Overseas Territory. Although it is not a sovereign country, it can set its tax policies.
Gibraltar has always been a tax haven for British citizens looking to escape the heavy levies and social contributions collected in the UK. In Gibraltar, there are no taxes on capital gain, property, wealth, sales, and value-added taxes.
How cool is that? You can enjoy life in a paradise without having to worry about taxes. Gibraltar’s low-tax benefits are available to everyone, not just UK citizens.
The most popular taxes in the country are corporate taxes, social insurance contributions, and other stamp duties.
Before the 1st of July 2009, corporate tax in the country was around 22%. Today, you can start or establish a company/business in Gibraltar pay just 10% in taxes.
Do you know what this means, you have can a company in the UK and pay just 10% in taxes. That’s a great deal if you ask me.
Personal income taxes for residents and expats are also very low. You can incur taxes as low as 8% or as high as 25% depending on your annual income.
Malta is a great choice for companies, businesses, tourists, and agencies looking to pay fewer taxes in an EU country.
The best thing about naturalizing for Malta is the fact you are not required to pay taxes on income generated outside the country [as long as the said income is not spent in Malta].
Unlike other European countries, entrepreneurs can obtain citizenship status and residency without even traveling to the country.
The beautiful country has developed a lot of tax-friendly programs and policies for both individuals and corporations. You can start a company in the EU country and enjoy corporate tax rates as low as 5% even as a non-resident company.
Citizens and foreign residents can also a tax-free stay. Tax rates in Malta vary from 0% to 35% depending on your annual income. Individuals that earn less than €13,000 in a year enjoy a tax-free stay in the country.
Residents that earn above €60,000/annum will be taxed only 35% of their income. Other types of income levies are subject to a onetime flat rate of 15%, thanks to the tax-friendly programs available to residents.
Malta offers third-country nationals some of the easiest routes to obtain EU citizenship.
Thanks to its citizenship by investment programs, you can gain EU citizenship without ever leaving your home country or visiting the Schengen Area.