Low tax manufacturing in Europe in 2023

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Summary at a Glance
Total year 1 engagement set up costs (in €)?16,58010,9909,5358,9908,360
Total year 2 costs (incl. audit and tax in €)?12,1303,4203,4003,5804,630
Our Client must travel during the engagement?NoNoNoNoNo
Total engagement period?2 months2 months2 months2 months2 months
Corporation tax rate on net profits?12.5%9%12.5%20%10%
Tax-optimized free zones available?YesYesYesYesYes
Average monthly employee salary (2015)?32007861796606443
Warehousing rental (€ per sq. m.)?€10€4€3€5€3
Industrial space rental (€ per sq. m.)?€5€5€4€5€3
Fast turnkey solution available?YesNoNoYesYes
Incorporation requirements
How long to setup the company?2 weeks3 weeks3 weeks3 weeks2 weeks
Minimum paid up share capital in €?110,00012,8001
Minimum number of shareholders?11111
National shareholder required?NoNoNoNoNo
Corporate shareholders allowed?YesYesYesYesYes
Minimum number of directors?21111
Resident director required?YesNoNoNoNo
Corporate director(s) allowed?NoNoYesYesNo
Public register of shareholders & directors?YesYesYesYesYes
Tax and accounting considerations
Corporation tax rate on net profits?12.5%9%12.5%20%10%
Average import taxes payable?23%25%15%21%20%
Average export tax payable?4%4%4%4%4%
Export credit incentives\subsidies available?YesYesYesYesYes
Local GST or VAT? (%)23%27%19%21%20%
Tax incentives for manufacturing start-ups?YesYesYesYesYes
How many tax-optimized free zones in the country?2No247
Part of the Eurozone single currency?YesNoYesYesNo
EU VAT member?YesYesYesYesYes
Total effective tax paid by a business (% earnings)26%48%23%35%27%
Average dividend withholding tax with double taxation treaty access?10%8%10%5%3%
Average dividend withholding tax without double tax treaty access?20%16%17%15%5%
Access to how many double tax treaties?7279515760
Annual financial statements required?YesYesYesYesYes
Statutory independent annual audit required?YesNoNoYesNo
Quarterly accounting and tax reporting to the Government?NoNoNoNoNo
Corporate bank account characteristics
Healy Consultants’ preferred bank?Top 5 BankTop 10 BankTop 5 BankTop 10 BankTop 3 Bank
How long to open a corporate bank account?4 weeks3 weeks4 weeks4 weeks4 weeks
Do I travel to open the bank account?NoNoNoNoNo
Minimum deposit (€)?€1,000€1,000None€1,000None
Multi-currency corporate debit cards?YesYesYesYesNo
Corporate ATM card available?YesNoNoNoNo
Foreign exchange controls?NoNoNoNoNo
Bank rating by World Economic Forum?139731435662
Ease of getting credit? (by WEF)?1171261099653
Employment considerations
Minimum national salary?1,499333870360184
Average monthly employee salary (2015)?3,2007861,796606443
Average social contributions (%salaries)?10.75%18.50%11.50%23.59%18.50%
Labor productivity per hour (in US$)?47.328.331.28.216.5
Mandatory labour unions?NoNoNoNoNo
Minimum notice to dismiss employees?1 week4 weeks1 weeks30 days30 days
Minimum redundancy indemnity?2 weeks2 months2 weeks4 weeks4 months
Quotas on foreign workers?YesNoYesNoNo
How long to get work permit approved?4 weeks4 weeks4 weeks4 weeks4 weeks
Schengen area member state?YesYesNoYesNo
Manufacturing considerations
Warehousing rental (€ per sq. m.)?10434.53
Industrial space rental (€ per sq. m.)?5545.32 - 4
Cost per unit of electricity (€ per kWh)?
Average unemployment rate in 2015?9.40%6.70%15.30%9.80%9.20%
Internet connectivity?2560584254
Dealing with construction permits ranking?12810314847101
Tax incentives for manufacturing start-ups?YesYesNoYesYes
Average inflation rate 2014-2015?0.20%-0.20%-1.40%0.6-1.40%
Logistical considerations
Preferred manufacturing city?DublinBudapestLimassolRigaPlovdiv
Proximity of sea port in kilometers?12.5530*8.65256
Proximity of airport in kilometers?10.722.49110.414.4
Proximity of rail in kilometers?5.64.3None10.51.6
Does the country have maritime access?YesNoYesYesYes
Local Market size (in USD)US$ 250bnUS$136bnUS$23bnUS$31bnUS$55bn
Local purchasing power (GDP per capita)53,31313,90231,83616,0377,588
Ease of doing business index1354642338

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