If you are tired of paying high taxes to your government moving to a country with a low tax rate will be the right decision. There are numerous countries that offer low tax rates. In this article, we are going to take a look at the European countries that offer low tax rates and you can move there easily to avoid paying hefty taxes. If you are an ex-pat and digital nomad it will be a bonus for you. However, whatever you do, you don’t worry about the taxes anymore as this list will help you choose the country with the lowest tax rates.
This guide will help you choose the country in Europe where you can move to avoid paying hefty taxes. This guide will also help you to decide where you should take the residency or second nationality.
With that said, let’s get started with the list of low-tax countries in Europe.
Andorra
This is the first country on my list. It offers the lowest tax rate in Europe. They do not charge gift tax, wealth tax, and inheritance tax. Andorra was a tax-free state till 2015. In 2015 they started charging tax however, it is not a lot they charge only 10 percent on an income of 40,000 euros. If your income is lower than 24,000 euros you don’t have to pay any tax. The capital tax only charge on the sale purchase of the real estate. Moreover, they have corporate tax is only between 2 to 10 percent. So, if you are looking to move to Europe then Andorra can be the right choice for you.
Bulgaria
This another great country know for its low tax rates in Europe. They charge 10 percent on income tax and corporate tax is also the same which is 10 percent. Many people from around the world register their businesses in Bulgaria for low tax rates. Moreover, they charge a capital gain tax of 10 percent however, it can avoided if you own any stocks and have investments in the Europe region.
Cyprus
A well-known country in Europe. Cyprus offers low tax rates compared to many European countries. They have a 12.5 percent corporate tax on resident companies while non-resident companies have to pay zero tax. Those who are tax residents pay for their worldwide income while nontax residents only pay the income tax on the money that is generated inside Cyprus. So, if you are looking to avoid taxes getting a Cyprus company can be beneficial for you. Moreover, the value-added tax is 19 percent in Cyprus. The income tax is applied to tax residents who earn over 19,500 euros. The income tax is 20 percent on 19,500 euros however, it can be increased to 35 percent if your total income is over 60,000 euros per year. The value-added tax on groceries, books and the hotel is 9 percent. While areas like rent, financial services, and exports are tax-free. So, if you are from financial services, looking to rent things out, and exporter you can avoid value-added tax altogether.
Georgia
Georgia does not charge income tax to non-residents. The money coming from other countries will not be eligible for taxes. So, Georgia is the right place for you if you are a digital nomad or remote worker. The Georgian tax environment is highly suitable for digital nomads which is why many digital nomads move to Georgia. Other taxes in Georgia is also low compared to many other countries. The income tax is only 1 percent if your income is 500,000 Georgian Lari. There is no tax on buying and selling cryptocurrencies. However, the corporate tax is flat at 15 percent. My two cents are that if you are a digital nomad or remote worker. Moving and working from Georgia will be highly beneficial for you because you don’t have to pay any taxes on foreign income.
Lichtenstein
This country has the lowest corporate tax in Europe. The corporate tax is flat at 15 percent. If you are looking for a holding company registration then Lichtenstein can be the beneficial state for you. They have easy tax laws compared to other countries. The income tax is only 8 percent. Moreover, they only charge income tax to those who are earning 245,000 dollars per year. The value-added tax is only 7.7 percent. The capital gain tax varies from 2 to 3 percent. The wealth tax is also low which is only 4 percent.
Luxembourg
If you are a business owner then Luxembourg is an ideal place for you they have businesses friendly taxes and many major companies like apple, Pepsi and others have registered their businesses in Luxembourg. There is no tax on non-resident companies however, the resident companies are charged with taxes. There are also no capital gain taxes if you hold less than 10 percent of shares. Many major companies take benefit from their business’s taxes system even though Amazon has a low tax rate in Luxembourg.
Conclusion
If you are looking for a place that has low taxes worry not I have listed major countries with low tax rates in Europe. It does not matter if you are a business owner, a digital nomad, or a remote worker. These countries offer the most lucrative tax rates. I have tried to cover everyone in this article. Mentioned numerous European countries that offer low tax rates. Moreover, you can enjoy the culture of these countries you can live there while working for foreign companies. You can get citizenship by investment as well. So, the sky is the limit when doing business with these countries. \
Paying taxes is a good thing but when it comes to taking second citizenship or wanting to move to a country it is good to take a look at their tax rates and policies. The tax charged by countries can be highly influential while making the decision to register your company or move there. Above guide can help you decide better if you are planning to move to Europe for business or for work.
