Best low tax EU country for freelancing

[dissident]

Do you know any EU country to operate as freelance or sole proprietorship with a low tax burden?
Ideally with a flat tax no higher than 15%.

Found this useful site comparing freelance taxes across countries with different tax schemes and life cost per city:
https://freelance.tax

 

[MarkusM]

In Romania you pay only 1% corporate tax if your income is under 1 milion Euro + 5%tax on dividents if you choose to withdraw them!

 

[happyjohn]

Beside corporate tax because you have found a cheap country to setup your company you must look into what's your banking options for your new company in that country!

Company setups are easy and most often pretty cheap and fast but banking is the key issue!

 

[GrumpyMess]

Czech republic has an effective rate of 12-13% with social security included if your income is less than 2kk czk/year.

 

[JohnLocke]

I second @happyjohn but would like to add that Cyprus has the lowest tax rate within the EU 12,5% and still offer some sort of privacy until next year. After that, countries like Czech Republic, Romania, Bulgarian, Georgia and so forth may be worth to look into.

Finally we may not forget the UK, but it may take some time before they will compete with the EU I think.

 

[pierino]

does romania already have a UBO registry up and running, or some sort of public registry of company directors/shareholders?

 

[user9823671]

In Romania you pay only 1% corporate tax if your income is under 1 milion Euro + 5%tax on dividents if you choose to withdraw them!

Is that generally or only for freelancer companies?

 

[bejn]

In Romania you pay only 1% corporate tax if your income is under 1 milion Euro + 5%tax on dividents if you choose to withdraw them!

Hi, do you have some contact who setup all this online for me?
I contact some companies who do that and they gave me different informations about this. I'm not a citizen of Romania, doing legal work and think to open a company in Romania to reduce taxes and pay out dividends.

 

[MarkusM]

After that, countries like Czech Republic, Romania, Bulgarian, Georgia and so forth may be worth to look into.

Cyprus have 12,5% tax rate, Romania 1%.
Why did you said Cyprus is better than the others?

 

[MarkusM]

Is that generally or only for freelancer companies?

It-s generally! If your turnover is under 1 milion Euro , you qualify!

 

[MarkusM]

Hi, do you have some contact who setup all this online for me?
I contact some companies who do that and they gave me different informations about this. I'm not a citizen of Romania, doing legal work and think to open a company in Romania to reduce taxes and pay out dividends.

I not sure if the company can be incorporated over the internet, i think you must be there in person in order to sign the documents!

 

[bejn]

I not sure if the company can be incorporated over the internet, i think you must be there in person in order to sign the documents!

Its ok, I can go to Romania if is need.

 

[dissident]

Thanks for the replies! I'm specifically looking for a sole proprietorship (aka freelance) legal figure. I want low operating overhead, low cost and easy to setup.
Operating with a company figure is always more expensive, complex to take money out and involves more bureaucracy bulls**t.

Ideally, paying up to 15% flat tax in total, including income tax, social contributions, pension and all the s**t taxes governments invent to steal money from you.

 

[cyprus123]

Romania is not a good option if you are used to things being done smoothly. I have experienced notaries making mistakes, translators needing a lot of time for their job, to get a VAT number you actually need a physical office and wait a few weeks etc. It is not an environment for people who are working remotely and not personally in the country to chase the people.

Look into Bulgaria, Cyprus or Georgia. In these jurisdictions you can expect things to be much smoother.

 

[avalanche]

Thanks for the replies! I'm specifically looking for a sole proprietorship (aka freelance) legal figure. I want low operating overhead, low cost and easy to setup.
Operating with a company figure is always more expensive, complex to take money out and involves more bureaucracy bulls**t.

Ideally, paying up to 15% flat tax in total, including income tax, social contributions, pension and all the s**t taxes governments invent to steal money from you.

Armenia offers 0% tax for IT freelancers until you make $50,000 per year. After that tax crawls up to 3% until you make $200k per year. Banking easy to set up with proper contacts (EUR USD AMD accounts) Accounting may cost around $80/mo. Easy to get residency, good and affordable healthcare (although need to know Russian language. Setup is around 1k EUR

 

[Bluepearl]

Romania is not a good option if you are used to things being done smoothly. I have experienced notaries making mistakes, translators needing a lot of time for their job, to get a VAT number you actually need a physical office and wait a few weeks etc. It is not an environment for people who are working remotely and not personally in the country to chase the people.

Look into Bulgaria, Cyprus or Georgia. In these jurisdictions you can expect things to be much smoother.

But Georgia is not EU and you can not receive EU VAT number

 

[boresnake]

If your turnover doesn't exceed 80k EUR, then effective tax rate in Czech Republic will be 13.25%. Social security and health insurance included.

For VAT fillings you have to report each month to the tax authority. But it's manageable, I am doing it myself regularly.

If you wish I can help you with the rent/lease agreement, bank account, local sim and other stuff to get the tax residency status. Just PM.

 

[Reboot]

If your turnover doesn't exceed 80k EUR, then effective tax rate in Czech Republic will be 13.25%. Social security and health insurance included.

For VAT fillings you have to report each month to the tax authority. But it's manageable, I am doing it myself regularly.

If you wish I can help you with the rent/lease agreement, local sim and other stuff to get the tax residency status. Just PM.

What about income tax/IRS?

 

[boresnake]

What about income tax/IRS?

It's included as well. Here is detail reconciliation in local currency (1EUR=25CZK)

Let's say your revenue from invoices is 2.000.000 CZK
You pay 116 800 CZK in social security
You pay 54 000 CZK in health insurance
You pay 95 160 CZK in tax
You totally have paid 265 960 CZK which makes your effective tax rate 13.25%

Assuming you have no other revenues abroad and no deductibles for children (meaning the tax residency status wouldn't be so easy). And above revenues 2 mio CZK your tax rate increases.

See the details here Tax TIES: Czech Republic - Income Tax

 

[Reboot]

It's included as well. Here is detail reconciliation in local currency (1EUR=25CZK)

Let's say your revenue from invoices is 2.000.000 CZK
You pay 116 800 CZK in social security
You pay 54 000 CZK in health insurance
You pay 95 160 CZK in tax
You totally have paid 265 960 CZK which makes your effective tax rate 13.25%

Assuming you have no other revenues abroad and no deductibles for children (meaning the tax residency status wouldn't be so easy). And above revenues 2 mio CZK your tax rate increases.

See the details here Tax TIES: Czech Republic - Income Tax

And what is needed to have tax residency?