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  • Writer's pictureCreimerman Product Team

Andorra | Montenegro | Bulgaria: The top 3 European Tax Heaven.




Many countries are aware that by imposing excessive taxes, expats are likely to simply take their wealth elsewhere. That is why many countries create tax benefits. In today article we are going to explore the 3 best countries without taxes in Europe


Europe presents many benefits for expats around the world. These countries provide a refuge from income taxes, capital gains taxes, and corporate taxes. In consequence, they have attracted a variety of tax refugees, including large companies and private investors, seeking to mitigate the oppressive tax regimes in their home nations.


Andorra



Andorra has no wealth tax, no inheritance tax, no gift tax, and only charges capital gains tax on the sale of Andorra real estate, purchase of which will be necessary if you wish to establish tax residency in the principality.


It’s income tax rates vary from 0% t0 10% and take effect once income exceeds €40,000. There is a generous standard exemption of €24,000. Corporate tax rates vary from 2% to 10%.


There are two ways to qualify for tax residency in Andorra. One is to make an investment and the other is to start a company. Both require a person to reside in Andorra a minimum of 90 days each year and to purchase property, maintain a bond, and acquire Andorran health insurance. Active and passive residency permits are issued for 2 years for the first three renewable cycles, then 10 years for the fourth cycle onward.



Montenegro

As far as EU countries go, it has one of the more attractive tax regimes. It has the freest economy in the Balkans, a top personal income tax rate of 11%, a 9% corporate tax rate, and a 9% capital gains tax.

All companies formed in Montenegro, regardless of local or foreign ownership, are subject to the same taxes, which means that corporate entities are taxed at a 9% flat rate. Montenegro is not a holding company regime and there are no real tax advantages to setting up a holding company in the Montenegrin jurisdiction. The primary advantage to establishing a corporate residency in Montenegro is that it has one of the lowest flat tax rates in Europe.


Bulgaria

Bulgaria has the lowest personal and corporate tax rates within the European Union , both of which are a flat rate of 10%. While you will also pay a 10% capital gains tax on profits from the sale of property, there is no capital gains tax on your profits if you have investments or trade the stock market in the EU.


You can become a tax resident of Bulgaria in one of two ways:

  1. Live there at least 183 days each year;

  2. Demonstrate to the tax office that Bulgaria is your vital center of interest by presenting evidence in relation to the location of your employment or business.

The country has low corporate tax rates, low operational costs, and if the company has employees lower labor costs than in other EU countries. If the investor just wants to open a private company, on the other hand, there is a quick registration process that takes less than two weeks and a symbolic minimum required capitalization of $1.25 USD


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