Low Tax Countries in Europe (Surprising list)

Countries in Europe with the lowest tax rates.

Ireland

Ireland is one of the fastest growing countries in Western Europe and it is easy to understand why.
The country has a significantly lower level of taxes at a corporate level than almost all countries in the region.
The favorable tax system in Ireland has brought a number of companies to have their HQ in the country.
Among them, we have AirBNB, Google, Microsoft, Apple and Facebook.
The current corporate tax in Ireland is of just 12.5%. Personal income taxes in Ireland are more similar to those in the rest of the region.
I believe Ireland will continue to grow and attract more companies while countries like France, Spain and Italy lag behind in the continent.

Monaco

Monaco is known to the be playground of the rich and famous for decades.
It is not a coincidence the fact that the rich and famous actually choose Monaco as their place of residence.
One of the main reason behind this choice, is that Monaco has no personal income tax since the year 1869.
Corporate taxes also are not broadly inexistent, but they are charged if the company has more than 25% of its activities outside of the
country.
Monaco also does not have other types of important taxes such as capital gains tax, or a wealthy tax.
One of the only taxes that exist and are not low in Monaco is the Value Added Tax, currently at 20%.

Andorra

Andorra is another country in Western Europe with a very attractive tax regime.
Apart from being a beautiful country in the Pyrenees, Andorra is known as a shopping paradise and one of the best ski destinations in
Europe.
All types of taxes are low in Andorra, but they do exist.
Income tax in Andorra at a personal level ranges from 0 to a maximum of 10% of the total income.
The corporate tax in Andorra is 10%.
A great advantage of Andorra is that it is much easier to acquire residency in the country when compared to Monaco for example.
Many Spanish Youtubers have chose this country as their new home in order to reduce their tax bills as residents of Spain.

Bulgaria

Bulgaria is a country in Eastern Europe that has been making a number of efforts to attract international businesses.
The country is a full European Union member since 2007, and have been growing steadily since then.
It still has its own currency, the leva, but its value is pegged to the euro (althought not at a 1 to 1 rate).
Bulgaria has the same level of income tax at a both personal and corporate level. Currently, the income tax rate in Bulgaria is 10%
Despite low taxes Bulgaria still has a number of problems related to high bureaucracy and corruption, therefore, it still has
a lot of room to improve and become a more attractive business destination.

Cyprus

Cyprus is an island nation on the Meditteranean Sea and it is known for using a number of strategies to attract foreign investment.
Currently, the corporate tax in Cyprus is of 12.5%. Personal income tax in Cyrpus range from 0 to 35%, remaining considerably below
the European Union average.
Favorable tax rates in Cyprus attract a number of IT services companies to establish their HQs in the country.
Among them, we have Viber, recently sold to Rakuten, and Wargaming, known for its World of War gaming series.
Cyprus is also known for its citizenship by investment program.

Montenegro

Montenegro is an interesting jurisdiction for those who want to incorporate with a lower tax rate, and also enjoy a low cost of living.
Often remembered as a top European travel destination for its seaside on the Adriatic Coast, this small Balkan nation is also a good
place to go if you want to pay less taxes in the continent.
Currently, the corporate tax rate in Montenegro is just 9%, one of the lowest in Europe.
Personal income tax is also pretty low in this Balkan country, at 9% generally, but 11% in some specific cases. In both situations, it
is a pretty low rate, especially for European standards.

Bosnia and Herzegovina

Slightly north from Montenegro, we have Bosnia and Herzegovina, which is also one of the European countries with the lowest tax rates.
Bosnia does not only offer a very favorable tax regime, but also has a quite affordable cost of living.
Currently, Bosnia and Herzegovina have a flat tax system. Corporates and individuals are taxed at 10% of their income, in almost all cases.
Despite its very attractive tax regime, Bosnia is a destination yet to be discovered by both individuals and corporations.
Corruption and the lack of a good overall country infrastructure are some of the reasons slowing down the economic growth of the country.

Georgia

The last country in this video is Georgia.
Georgia is an up-and-coming business destination in the Caucasion region, and one of the fastest growing former Soviet Republic.
The country passed a number of economic reforms during the past decade, and is currently one of the most attractive countries for
foreigners willing to enjoy a good quality of life and pay a low total tax rate.

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