Comparing low tax European countries

Tax Resident CompaniesGeorgiaHungaryPolandEstoniaBulgariaLithuania
Summary at a glance
Part of the EU common currency?NoNoNoYesNoYes
Can benefit from EU directives?NoYesYesYesYesYes
Repatriation or currency controls?NoNoNoNoNoNo
Double tax treaties with USA?YesYesYesYesYesYes
Double tax treaties with Russia?NoYesYesNoYesYes
Double tax treaties with China?YesYesYesYesYesYes
Corporation tax15%10%9%20%10%15%
VAT rates18%27%23%20%20%21%
Type of company recommended?LLCLLCLLCLLCLLCLLC
How soon can you have a certificate of incorporation?1 week3 weeks3 weeks3 weeks2 weeks2 weeks
How soon can you have corporate bank account numbers?6 weeks5 weeks6 weeks6 weeks4 weeks6 weeks
Corporate bank account locationBank of GeorgiaRaiffeisen BankPKO BankBigBankUniCreditSwedbank
Do you need to travel for Europe company setup?NoNoNoNoNoNo
Total company engagement set up costs€11,650€10,990€12,160€10,400€10,460€10,925
Subsequent annual costs (incl audit and tax)€4,550€3,420€3,500€5,350€4,730€3,400
Legal & accounting and tax considerations
Resident shareholder or director required?NoNoNoNoNoNo
Minimum number of directors for Europe company111111
Minimum number of shareholders for Europe company111111
Corporate director(s) allowedNoNoNoNoNoNo
Public register of shareholders and directorsYesYesYesYesYesYes
Paid-up share capital required?€1€1€1€2,500€1€2,500
Standard Corporate Tax Payable %15%9%9-19%20%10%15%
Lower corporate Tax payable for SMEs (turnover under €2m)NoNoYes, 9%NoNoNo
Must prepare annual financial statements?YesYesYesYesYesNo
Independent statutory audit required?YesYesNoNoYesYes
Annual tax return to be submittedYesYesYesYesYesYes
Access to how many double tax treaties567086586855
Tax exempt free zones availableYesYesYesYesYesYes
Withholding tax on dividends0%0%19%0%5%15%
How long to get Europe employment permit?6 weeks5 weeks12 weeks8 weeks4 weeks8 weeks
Logistics considerations
Allowed to sign sales contract with local clientsYesYesYesYesYesYes
Allowed to invoice local clientsYesYesYesYesYesYes
Lease agreement required before company incorporation?NoNoNoNoNoNo
Average monthly salary of skilled labour€680€800€950€935€650€840
Average monthly salary of low-skilled labour€290€395€450€550€300€550
English spoken by what % of the population10%20%30%61%25%50%
Literacy rate %99.8%99.1%99.8%99.8%98.4%99.8%
Country rating (out of 100)455871836073
Broadband mean download speed in MBPS (2019)7.1431.1024.3831.5516.9530.66
GDP per capita (US$)US$ 4,717US$ 16,162US$ 15,420US$ 23,266US$ 9,272US$ 19,153
Population % of tertiary enrolment64%49%68%70%71%72%
Global Competitiveness Index Ranking744737314939
Ease of Doing Business Global Ranking75240186111
Population3.7 million9.8 million38 million1.3 million7 million2.8 million
Unemployment rate12.7%3.7%5.4%4.1%6.7%11.2%
Inflation rate (2019)6.9%2.4%3.4%-0.8%3%1%
GDP 2019 US$ billion17.5157.8585.630.765.153.4
Average annual growth rate (2018) 4.8%5.1%5.1%4.8%3.1%3.6%
OECD member country?NoYesYesYesNoYes
CRS reporting obligations (click link)?NoYesYesYesYesYes
FATF blacklisted country?NoNoNoNoNoNo
EU or USA Sanctioned country?NoNoNoNoNoNo
HSBC multi-currency corporate bank accounts available?NoNoYesNoNoNo
Country credit rating?Ba2Baa3A2A1Baa2A3
Estimate of engagement costs
Company formation fees?€4,300€3,630€4,850€3,250€3,400€4,275
Legal registered office fees?€1,200€1,100€1,200€1,200€1,200€1,200
Estimate Government fees?€450€560€310€250€60€100
Corporate bank account opening fees?€4,950€4,950€4,950€4,950€4,950€4,950
Tax and VAT registration fees?€750€750€850€750€850€500
Estimate of total outgoings in Year 1?€11,650€10,990€12,160€10,400€10,460€11,025
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