Low Cost Manufacturing Central Europe and Turkey in 2023

Low Cost Manufacturing EuropeHungaryRomaniaPolandCzech RepublicTurkey
Our ranking in order of preference12345
Summary at a Glance
Total year 1 engagement set up costs in €?8,2108,82012,0609,66016,815
Total year 2 costs (incl. audit and tax) in €?3,4203,4403,9002,35510,360
Our Client must travel during the engagement?NoNoNoNoYes
Total engagement period?2 months2 months2 months3 months3 months
Corporation tax rate on net profits?9%16%19%19%23%
Average monthly employee salary in €?773417705765565
Average monthly office rental per sq m in €?108151211
Average warehousing rental per sq. m. per month in €?
Computer literacy % of population72%57%58.4%74.1%46.6%
English language proficiency % of population?58.5458.6364.2657.4247.80
Incorporation requirements
How long to set the company up?2 weeks3 weeks3 weeks4 weeks3 weeks
Minimum number of shareholders?11111
National shareholder required?NoNoNoNoNo
Individual and corporate shareholders allowed?YesYesYesYesYes
Minimum number of directors?11111
Resident director required?NoNoNoNoNo
Minimum paid up share capital in €?10,0005017,0003,360
Fast turnkey solution available?NoNoNoNoNo
Corporate director(s) allowed?NoNoYesYesNo
Public register of shareholders & directors?YesYesYesYesYes
Tax and accounting considerations
Corporate tax payable?9%16%19%19%23%
Withholding tax on dividends paid overseas0-16%0-16%20%15%15%
Annual financial statements required?YesYesYesYesYes
Statutory independent annual audit required?NoNoNoNoNo
Local GST or VAT? (%)27%19%23%21%18%
Tax incentives for manufacturing start-ups?YesYesYesYesYes
Access to double tax treaties?7975807080
Tax optimized free zones available?YesYesYesYesYes
EU VAT member?YesYesYesYesNo
Corporate bank account considerations
Healy Consultants’ preferred bank?KDBRaiffeisenHSBC Bank PolskaCeska SporitelnaHSBC Turkey
How long to open bank account?4 weeks4 weeks4 weeks4 weeks4 weeks
Do I travel to open the bank account?NoNoNoNoNo
Minimum bank deposit (USD)?US$1,000NoUS$20,000NoUS$33,000
Multi-currency corporate bank account?NoYesYesYesYes
Multi-currency corporate visa debit cards?NoYesYesYesYes
Corporate ATM card available?NoNoYesYesYes
Bank rating by World Economic Forum?7391512438
Ease of getting credit by WEF?12659893664
Euro currency used by this country?NoNoYesNoNo
Employment considerations
Average skilled labour monthly salary in €?800600704797590
Average unskilled labour monthly salary in €?500400650405450
Average pension and insurance benefits %?27%15.8%35%34%20.5%
Minimum national salary in €?333218410332424
Labor productivity per hour (in US$)?28.31928.13128.9
Mandatory labor unions?NoYesYesNoYes
Minimum days’ notice to dismiss employees?3015146020
Minimum redundancy indemnity?2 month payNo1 month pay2 month pay1 month pay
Quotas on foreign workers?NoNoNoNoYes
How long to get work permit approved?4 weeks4 weeks4 weeks4 weeks4 weeks
Manufacturing considerations
Cost per unit of electricity in € per kWh?0.0350.0320.0500.0500.11
Rank for getting electricity (by WB)1621716412334
Warehousing rental (€ per sq. m. per month)?
Ranking for transport infrastructure? (by WEF)?65106785322
Ranking for customs procedures (by WEF)?3186584783
Government incentives for startups?YesYesYesYesYes
Internet connectivity rating?72.6%49.8%62.8%74.1%46.2%
Global competitiveness index?5759433745
Venture capital availability (by WEF)?12178994290
Logistical considerations
Preferred manufacturing city?DunaújvárosBucharestWarsawOstavaBursa
Number of seaports?0510047
Number of airports?414512612898
Proximity of railways in kilometers?7,87722,29819,6179,4699,642
Computer literacy % of population72%57%58.4%74.1%46.6%
Local purchasing power (GDP per capita in US$)24,94219,71225,10529,92519,610
Local market size (population in millions)9.821.638.210.775.8
Average annual inflation rate in 2015?0.63%-1.5%-0.8%0.8%7.2%
Average unemployment rate?7.3%6.9%7.9%5.9%10.4%
Ease of doing business index5748324455
Estimate of engagement costs (€)
Healy Consultants engagement fees2,8503,8504,8503,5506,940
Company secretary and registered office1,1001,1001,2009502,750
Government fees5601703102601,225
Resident director fees (0 if not required)00000
Corporate bank account opening2,9502,9504,9503,9504,950
Estimate of total outgoings in Year 18,2108,82012,0609,66016,815
Draft sales invoice attachedView invoice PDFView invoice PDFView invoice PDFView invoice PDFView invoice PDF

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