Cyprus
Cyprus enacted a significant tax reform package effective 1 January 2026, introducing an increased in corporate income tax rate from 12.5% to 15%. The tax loss carry forward period is extended from five to seven years.
Expanding Your Business to Europe
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Expand Your Business To Europe
Expanding an existing business into the European market has its own advantages and offers businesses access to new skills, broadens markets, and gains regional experience in order to increase their global competitiveness. One of the main benefits of starting a business in the EU membership is an increase in market size with a freedom of movement of goods and services. Every European country has its own language, culture, business structure, and tax system, but Central European laws are applied to all countries within the European Union.
Why to invest in Europe
Europe has become an increasingly attractive destination for businesses looking to expand beyond their home markets. One of the main reasons is access to the European Union, which offers a single market of roughly 450 million consumers. This unified structure simplifies trade between member states, reduces tariffs, and creates a more predictable regulatory environment compared to entering multiple unrelated countries.
Whether you are entering Europe for the first time or scaling your presence, we provide the expertise, local insight, and strategic support needed to make your expansion efficient and sustainable.
01
Strategic geographic
position
Europe sits between North America, Asia, and Africa. Cities like Rotterdam and Frankfurt make it a strong base for logistics and international operations.
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02
Strong purchasing
power
Businesses that position themselves well can benefit from customers who are often willing to pay for reliability, sustainability, and brand reputation.
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03
Stability and
legal protection
Compared to many other regions, Europe provides a strong rule of law, reliable contract enforcement, and intellectual property protection.
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04
Access to a
skilled workforce
Many European countries invest heavily in education and training, producing talent in fields such as engineering, technology, and international business.
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Low-tax Jurisdictions
Most Popular European
Most Popular European
Tax Heavens
Hungary
Hungary boasts one of the most competitive tax systems in Europe, highlighted by a corporate income tax rate of just 9% and a flat personal income tax rate of 15%. Non-residents are taxed on Hungarian-source income only.
Ireland
Since 2003, Ireland has maintained a basic corporate income tax rate of 12.5%, which is considerably lower than the OECD average of approximately 23%. Sole traders and partnerships are subject to personal income tax.
Questions about Europe
We've compiled a list of top Most Asked Questions from our prospecting clients at Business Expansions. If you have further questions or need more information about our services, send us your particular requirements via the Contact Us form.
Europe offers access to a large, affluent consumer market (over 400 million people in the EU alone), strong infrastructure, political stability in most regions, and a highly skilled workforce. It is also a global leader in sustainability and innovation.
Typical entry strategies include:
- Establishing a local subsidiary or branch
- Mergers and acquisitions
- Joint ventures with European partners
- Investing in startups or venture capital ecosystems
- Setting up regional headquarters for EU operations
Most European countries are open to foreign investment. However, strategic sectors (e.g., defense, energy, telecommunications) may be subject to screening under EU and national foreign direct investment (FDI) regulations.
The European Union Single Market allows the free movement of goods, services, capital, and people across member states. This means a business established in one EU country can often operate across others with fewer barriers.
Corporate tax rates vary significantly by country:
- Lower rates: Ireland (~12.5%), Hungary (~9%)
- Higher rates: France, Germany (~25–30% combined)
It depends on your goals:
- Germany: manufacturing, engineering, large market
- Ireland: tech, pharmaceuticals, low corporate tax
- Netherlands: logistics, international trade, headquarters
- France: large consumer base, industrial sectors
- Poland: cost-effective manufacturing and services
Yes, including:
- EU funding programs and grants
- National tax incentives and subsidies
- R&D credits and innovation funding
- Regional development incentives, especially in Eastern and Southern Europe
Regulation can be both a strength and a challenge. The EU provides standardized rules (e.g., competition law, product standards), but each country has its own legal, tax, and labor regulations that must also be followed.
European labor laws tend to be more protective than in many other regions. This includes:
- Strong employee rights
- Minimum wage requirements (vary by country)
- Strict termination rules
- Generous leave policies
Common challenges include:
- Fragmentation across countries (languages, cultures, regulations)
- Bureaucracy in certain jurisdictions
- Higher labor and social security costs
- Data protection compliance (e.g., GDPR)
- Economic differences between Western and Eastern Europe