Comparison of EU free zones in 2023
Compare the EU free zones of Spain, Portugal, Ireland, Poland and Cyprus.
| EU FREE ZONES | Spain | Portugal | Ireland | Poland | Cyprus |
|---|---|---|---|---|---|
| OUR RANKING IN ORDER OF PREFERENCE | 1 | 2 | 3 | 4 | 5 |
| Summary at a Glance | |||||
| Total year 1 engagement set up costs? | €14,789 | €12,200 | €16,580 | €14,910 | €10,535 |
| Total year 2 costs? | €3,900 | €6,400 | €12,130 | €2,300 | €2,300 |
| Corporate tax payable on global sales? | 4% | 5% | 12.5% | 0% | 12.5% |
| Name of the most popular free zone? | Canary Islands | Madeira IBC | Shannon | Pomeranian | Larnaca |
| Free zone mostly popular for: | Holding/Trading | Holding/Trading | Trading | Manufacturing | Manufacturing/Trading |
| How long to set the company up? | 3 weeks | 6 weeks | 2 weeks | 4 weeks | 2 weeks |
| Our Client must travel? | No | No | No | No | No |
| Recommend corporate bank account? | Deutsche Bank | Deutsche Bank | HSBC | Deutsche Bank | Byblos Bank |
| How long to open bank account? | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| Manufacturing allowed in the free zone? | Yes | Yes | Yes | Yes | Yes |
| Incorporation requirements | |||||
| Branch office or LLC recommended? | SL | SpQ | LLC | Sp.z.o.o | LLC |
| Resident director required? | No | No | Yes | No | No |
| Minimum number of directors? | 1 | 1 | 2 | 1 | 1 |
| Minimum number of shareholders? | 1 | 1 | 1 | 1 | 1 |
| Individual shareholders allowed? | Yes | Yes | Yes | Yes | Yes |
| Corporate shareholders allowed? | Yes | Yes | Yes | Yes | Yes |
| Corporate directors allowed? | Yes | Yes | Yes | Yes | Yes |
| Public register of shareholders & directors? | Yes | Yes | Yes | Yes | Yes |
| Special permit or license required? | Yes | Yes | Yes | Yes | Yes |
| Minimum amount of paid-up capital? | €3,000 | €1 | €1 | €1,230 | €1 |
| Tax and accounting considerations | |||||
| Corporate tax payable on global sales? | 4% | 5% | 12.5% | 0% | 12.5% |
| Average customs tax on imports? | 4.2% | 4.2% | 3.5% | 4.2% | 0 to 30% |
| Annual tax return to be submitted? | Yes | Yes | Yes | Yes | Yes |
| Annual financial statements required? | Yes | Yes | Yes | Yes | Yes |
| Statutory audit required? | Yes | Yes | Yes | Yes | Yes |
| Must register for GST or VAT? | 21% | 23% | 23% | 23% | 19% |
| Non EU sales exempt from GST/VAT? | Yes | Yes | Yes | Yes | Yes |
| Access to double tax treaties? | Yes | Yes | Yes | Yes | Yes |
| Logistics considerations | |||||
| Can rent premises outside free zones? | Yes | Yes | Yes | Yes | Yes |
| Can make sales to overseas Clients? | Yes | Yes | Yes | Yes | Yes |
| Allowed to make sales to local Clients? | Yes | Yes | Yes | Yes | Yes |
| Local sales subject to corporation tax? | 4% | 5% | 12.5% | 0% | 0% |
| Can the entity hire local staff? | Yes | Yes | Yes | Yes | Yes |
| Can the entity hire expatriate staff? | Yes | Yes | Yes | Yes | Yes |
| Average local monthly salary? | €3,500 | €2,000 | €4,500 | €1,100 | €1,200 |
| Monthly warehouse rental (per sq. m.)? | €4 | €4 | €5 | €5 | €5 |
| Monthly office rental (per sq. m.)? | €10 | €9 | €12 | €21 | €8 |
| Allowed to import raw materials? | Yes | Yes | Yes | Yes | Yes |
| Allowed to export goods? | Yes | Yes | Yes | Yes | Yes |
| Proximity to large port? | 8.9 Km | 3.9 Km | 56 Km | 43 Km | 2 Km |
| Proximity to international airport? | 21 Km | 23 Km | 4 Km | 38.8 Km | 5.9 Km |
| Proximity to train network? | 8.9 Km | 4.3 Km | 27.8 Km | 33.2 Km | 34.6 Km |
| Quality of country infrastructure index? | 13/144 | 12/144 | 36/144 | 79/144 | 30/144 |
| How long get expatriate work permit? | 1 month | 2 months | 4 weeks | 1 month | 1 month |
