Explore FIVE European countries with low tax rates for individuals and businesses. Find your tax-friendly destination now!

When it comes to seeking low-tax rate destinations, many individuals and businesses look beyond their borders for opportunities to minimise their tax burdens. While the Middle East, parts of Asia, and the Caribbean are often considered tax havens, there are enticing options in Europe that offer the best individual and business tax rates without compromising on the Western lifestyle. In this article, we will explore five European countries with favourable tax rates for both individuals and businesses. 

1. Andorra: The Principality of Tax Efficiency 

Nestled between Spain and France, the tiny principality of Andorra boasts more than just breathtaking landscapes; it is a tax-efficient paradise. Known for its duty-free shopping and world-class ski resorts, Andorra offers a maximum individual and business tax rate of just 10%. It is an attractive destination for those seeking a Western European lifestyle with tax-friendly benefits. 

2. Bulgaria: A Southeastern Gem 

Located in Southeast Europe, Bulgaria is a melting pot of cultures, cuisines, and languages. As an EU member, it has been gaining popularity among expatriates. Bulgaria offers a flat individual and business tax rate of 10%, making it an appealing destination for individuals and businesses alike. 

3. Georgia: The Entrepreneur’s Haven 

Georgia is often lauded for its ease of doing business, and its tax rates make it even more enticing. For certain entrepreneurs with specific income profiles, Georgia’s tax rate can be as low as 1% to 3%. While the maximum business tax rate in Georgia is 15%, the individual tax rate tops out at 20%. 

4. Hungary: A European Gem with Low Taxes 

Hungary, a member of both the EU and OECD, stands out for its low tax rates. Budapest, the capital, offers a stunning backdrop with the Danube River dividing Buda and Pest. Hungary’s maximum business tax rate is 9%, and the individual tax rate caps at 16%, making it an ideal choice for those seeking a unique blend of culture and tax advantages. 

5. Montenegro: A Rising Star in the EU 

Montenegro is said to be on the cusp of joining the EU in 2025, making it an exciting destination for investors. Despite this impending transition, Montenegro maintains remarkably low tax rates. The maximum corporate tax rate is 9%, and the individual tax rate reaches a maximum of 15%. 

Impatriate Tax Rates Across Europe 

Certain European countries offer impatriate tax rates, tailored to individuals and businesses looking to stimulate the local economy. Countries like Greece, Italy, Spain, France, and Switzerland have introduced special tax schemes to attract expatriates who can contribute to economic growth. These schemes may provide unique advantages for those who meet specific criteria. 

Before making your decision, thoroughly research each country’s tax policies and consider how they align with your financial objectives. Whether you are an individual or a business, finding the right tax-friendly destination in Europe can lead to significant savings and opportunities. 

If you are interested in learning more about worldwide tax management or exploring additional countries that our clients are moving to, please reach out. We specialise in providing tailored solutions to meet your specific needs.