<h2>Introduction: Where to Open a Business in the EU — Comparing Countries and Taxes</h2>
<p>Opening a company or sole proprietorship in the European Union (EU) is a strategic step for entrepreneurs seeking stability, scalability, and international presence. <b>Having a European legal entity</b> or sole proprietorship simplifies working with clients and partners across the EU, increases trust, and provides access to the banking system.</p>
<p style="margin-bottom: 5px;">Such a company may be needed if you:</p>
<ul style="margin-top: 7px;">
<li>plan to <b>work with clients and contractors in the EU,</b></li>
<li>are launching an <b>online business or IT project</b> with a global audience,</li>
<li>want to enter <b>European marketplaces,</b></li>
<li>are entering into <b>B2B contracts</b> with European organizations,</li>
<li>seek <b>tax and currency stability,</b></li>
<li>aim for <b>transparent and clear reporting</b> in a familiar European jurisdiction.</li>
<p>In this article, we will compare popular countries for registering an LLC in the EU.</p>
</ul>

<h2>Why Entrepreneurs Choose Jurisdictions Within the European Union</h2>
<p>Registering a sole proprietorship or company in the EU is not just a “tick box” for image purposes. It is a tool that offers real advantages for doing business:</p>
<p><b>Client and partner trust.</b> A European company or sole proprietorship builds more confidence among B2B contractors, marketplaces, and services, especially if you're working internationally.</p>
<p><b>Simple logistics and taxation within the EU.</b> Companies from one EU jurisdiction work easily with clients and suppliers from other EU countries—without customs barriers and double taxation.</p>
<p><b>Access to payment systems and banks.</b> With a European company or sole proprietorship, it is easier to open an account, connect to Stripe, PayPal, Revolut Business, and other tools.</p>
<p><b>Legal protection and clear rules.</b> EU regulations are clear, with transparent procedures and a real opportunity to defend your rights.</p>
<p><b>Legalizing residence in the EU.</b> In many EU countries, having a company or sole proprietorship can be a basis for obtaining a residence permit or right to reside.</p>
<p>If you're looking for a stable foundation for international activities, <b>a company or sole proprietorship in the EU is the foundation of your business.</b></p>
<div class="blog-services">
<h3>✅&nbsp;Online Company/Sole Proprietorship Registration&nbsp;— <samp>from 350 €</samp></h3>
<p>We prepare all documents, and registration is done remotely through a power of attorney.<br/>
<a href="/en/sluzby/zalozenie-zivnosti" target="_blank">👉&nbsp;Sole Proprietorship Registration</a><br/>
<a href="/en/sluzby/zalozenie-sro" target="_blank">👉&nbsp;Company (LLC) Registration</a></p>
</div>

<h2>Comparison of Business Conditions and Taxation for LLCs (s.r.o.) in the EU</h2>
<p>When choosing a country for registering an LLC in the EU, it's essential to consider not only the corporate tax rate but also other key parameters: VAT registration thresholds, dividend taxation, startup capital requirements, administrative barriers, and additional conditions.</p>
<p>In the table below, we've compiled key parameters to help entrepreneurs <b>compare popular EU jurisdictions</b> and make an informed decision.</p>
<div class="responsive-table-container">
<table border="1" cellpadding="6" cellspacing="0">
  <tbody>
    <tr>
      <td>Country</td>
      <td>VAT Registration Threshold</td>
      <td>Corporate Tax</td>
      <td>Dividend Tax</td>
      <td>Notes</td>
    </tr>
    <tr>
      <td>Austria</td>
      <td><samp>55,000 €</samp></td>
      <td>23% + min tax <samp>875 €</samp></td>
      <td>27.5%</td>
      <td>Minimum capital <samp>35,000 €</samp></td>
    </tr>
    <tr>
      <td>Belgium</td>
      <td><samp>25,000 €</samp></td>
      <td>25%</td>
      <td>30%</td>
      <td>Business plan and capital justification required</td>
    </tr>
    <tr>
      <td>Germany</td>
      <td><samp>from 10,000 €</samp></td>
      <td>~ 29.9%</td>
      <td>~ 26.4%</td>
      <td>Minimum capital <samp>25,000 €</samp></td>
    </tr>
    <tr>
      <td>Denmark</td>
      <td><samp>~ 6,710 €</samp></td>
      <td>22%</td>
      <td>27-42%</td>
      <td>Capital gains tax</td>
    </tr>
    <tr>
      <td>Ireland</td>
      <td><samp>from 42,500 €</samp></td>
      <td>12.5-25%</td>
      <td>25%</td>
      <td>Foreign investment check system</td>
    </tr>
    <tr>
      <td>Spain</td>
      <td><samp>from 10,000 €</samp></td>
      <td>25%</td>
      <td>19-30%</td>
      <td></td>
    </tr>
    <tr>
      <td>Italy</td>
      <td><samp>from 10,000 €</samp></td>
      <td>~ 29.9%</td>
      <td>26%</td>
      <td>Fixed tax for new residents</td>
    </tr>
    <tr>
      <td>Luxembourg</td>
      <td><samp>from 10,000 €</samp></td>
      <td>~ 23.9%</td>
      <td>15%</td>
      <td>Minimum tax on net assets</td>
    </tr>
    <tr>
      <td>Netherlands</td>
      <td><samp>20,000 €</samp></td>
      <td>19-25.8%</td>
      <td>15%</td>
      <td></td>
    </tr>
    <tr>
      <td>Poland</td>
      <td><samp>from 10,000 €</samp></td>
      <td>19%</td>
      <td>19%</td>
      <td></td>
    </tr>
    <tr>
      <td>Portugal</td>
      <td><samp>15,000 €</samp></td>
      <td>16-29%</td>
      <td>28%</td>
      <td>New regime for non-regular residents</td>
    </tr>
    <tr>
      <td><b>Slovakia&nbsp;🔥</b></td>
      <td><b><samp>50,000 €</samp></b></td>
      <td><b>10-24%</b></td>
      <td><b>7%</b></td>
      <td>Minimum profit tax <samp>340 €</samp></td>
    </tr>
    <tr>
      <td>Slovenia</td>
      <td><samp>from 10,000 €</samp></td>
      <td>22%</td>
      <td>15%</td>
      <td></td>
    </tr>
    <tr>
      <td>Finland</td>
      <td><samp>from 10,000 €</samp></td>
      <td>20%</td>
      <td>20%</td>
      <td></td>
    </tr>
    <tr>
      <td>France</td>
      <td><samp>from 10,000 €</samp></td>
      <td>15-25%</td>
      <td>30%</td>
      <td></td>
    </tr>
    <tr>
      <td>Croatia</td>
      <td><samp>from 10,000 €</samp></td>
      <td>10-18%</td>
      <td>12%</td>
      <td>Must hire at least 3 Croats</td>
    </tr>
    <tr>
      <td>Czech Republic</td>
      <td><samp>~ 80,000 €</samp></td>
      <td>21%</td>
      <td>15%</td>
      <td></td>
    </tr>
    <tr>
      <td>Sweden</td>
      <td><samp>from 10,000 €</samp></td>
      <td>20.6%</td>
      <td>30%</td>
      <td></td>
    </tr>
  </tbody>
</table>
</div>
<p><b>👉&nbsp;Slovakia&nbsp;— one of the most balanced jurisdictions for small and medium-sized businesses:</b> easy and fast company setup, corporate tax rate from 10%, low dividend tax (only 7%), clear and understandable business regulations, affordable accounting and administrative support.</p>
<div class="blog-services"><p><b>⚠️&nbsp;Especially important for entrepreneurs from third countries:</b> registering a business in Slovakia provides an opportunity to <b>obtain or extend a residence permit (VNZ) </b>for entrepreneurial purposes. This is one of the most reliable and stable ways to legalize your stay in the EU for a long period.</p></div>

<h2>Comparison of Sole Proprietorship Registration and Business Operations in EU Countries</h2>
<p style="margin-bottom: 5px;">Registering a sole proprietorship in the EU is a simple and affordable way to start a business with minimal costs. However, requirements and tax burdens can differ significantly across countries. When choosing a country for sole proprietorship registration, it's important to consider:</p>
<ul style="margin-top: 7px;">
<li>tax and social contribution rates,</li>
<li>initial and ongoing obligations,</li>
<li>availability of remote registration,</li>
<li>ability for foreigners to operate businesses,</li>
<li>presence of migration programs through entrepreneurship.</li>
</ul>
<p style="margin-bottom: 5px;"><b>👉&nbsp;Slovakia&nbsp;— one of the most favorable options for registering a sole proprietorship by foreigners:</b></p>
<ul style="margin-top: 7px;">
<li>simple and fast registration — in just 1-3 days,</li>
<li>minimal tax burden: from <b>7% in the first year,</b></li>
<li>exemption from social contributions in the first year,</li>
<li>fixed expenses (60% of income) without the need to provide receipts,</li>
<li>full remote registration via our service,</li>
<li><b>possibility to obtain a residence permit</b> for entrepreneurial purposes for citizens from third countries,</li>
<li>easy business closure (suspension or liquidation in 1 day),</li>
<li>transparent rules, clear reporting system, and affordable accounting <samp>from 30 € per month</samp>.</li>
</ul>
<div class="blog-services"><p>⚠️&nbsp;For foreigners from third countries, Slovakia&nbsp;— one of the most convenient paths for legal migration and entry into the EU market. Opening a sole proprietorship in Slovakia allows you to obtain a residence permit, use local healthcare, and minimize bureaucratic burdens.</p></div>

<h2>Why Slovakia is One of the Best Options for Opening a Business in the EU</h2>
<p>Slovakia consistently ranks as one of the most attractive EU countries for registering small businesses. Here are the key reasons why entrepreneurs are increasingly choosing it:</p>
<p><b>Corporate tax&nbsp;— from 10%</b> for companies with an annual turnover of <samp>up to 100,000 €.</samp> This is one of the lowest rates in the EU.</p>
<p><b>Taxes and contributions&nbsp;— from 7%</b> for sole proprietors in the first year with an annual turnover of <samp>33,000 €</samp> and around 16% from the second year. This is also one of the lowest rates in the EU.</p>
<p><b>Simple and fast registration process</b>&nbsp;— the entire process can be done online through our service, without a personal visit.</p>
<p><b>Moderate business maintenance costs</b>&nbsp;— accounting for LLCs from <b><samp>70 € per month,</samp></b> with no hidden costs.</p>
<p><b>Favorable migration policy</b>&nbsp;— registering a company or sole proprietorship in Slovakia can be the basis for <b>obtaining a residence permit</b> for citizens from third countries.</p>
<p><b>Good reputation and legal stability</b>&nbsp;— Slovakia is an EU and Eurozone country, with transparent legislation and protection for entrepreneurs' rights.</p>
<p><b>It is possible to open an LLC/sole proprietorship via power of attorney</b>&nbsp;— without the need for personal presence, which is especially convenient for non-residents.</p>
<p>Slovakia&nbsp;— is a compromise between simplicity, a favorable tax system, and access to European opportunities.</p>
<p>Details in our article&nbsp;— <a href="/en/blog/business-registration-in-slovakia" target="_blank">How to Register a Business in Slovakia: LLC/Sole Proprietorship</a></p>

<h2>Ready-Made Solutions for Business in the EU from Oki-Doki.sk</h2>
<p>If you're considering opening an LLC/sole proprietorship in Europe, <b>Slovakia might be your perfect option,</b> and we’ll help you through the entire process from registration to business operation:</p>
<div class="blog-services">
<h3>✅&nbsp;Register LLC/Sole Proprietorship Online&nbsp;— <samp>from 350 €</samp></h3>
<p>We prepare all documents, and registration is done remotely via power of attorney.<br/>
<a href="/en/sluzby/zalozenie-zivnosti" target="_blank">👉&nbsp;Sole Proprietorship Registration</a><br/>
<a href="/en/sluzby/zalozenie-sro" target="_blank">👉&nbsp;Company (LLC) Registration</a></p>
</div>
<div class="blog-services">
<h3>✅&nbsp;Accounting for LLC/Sole Proprietorship&nbsp;— <samp>from 70 € per month</samp></h3>
<p>We work with sole proprietors and companies in IT, e-commerce, consulting, and other fields.<br/>
<a href="/en/sluzby/uctovnicke-sluzby" target="_blank">👉&nbsp;Accounting for Sole Proprietorship <samp>from 30 € per month</samp></a><br/>
<a href="/en/sluzby/uctovnicke-sluzby" target="_blank">👉&nbsp;Accounting for LLC <samp>from 70 € per month</samp></a></p>
</div>
<div class="blog-services">
<h3>✅&nbsp;Residence Permit Assistance</h3>
<p>For business founders from third countries. We handle the submission, documents, and police registrations.<br/>
<a href="/en/sluzby/residence-permit" target="_blank">👉&nbsp;Learn more about the service</a></p>
</div>


Where to open a business in the EU: comparison of Slovakia, Czech Republic, Poland, Estonia. Taxes, costs, why Slovakia wins.

Business in Europe: Comparing Countries for LLCs and Sole Proprietorships