How to Expand to the European Market
Updated on Tuesday 17th July 2018
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The European Union is a market that can't be ignored. Companies that are already established on the U.S. and Asian markets are highly likely to have a viable client base in Europe.
Issues like tax compliance, language, currencies, the EU guidelines for safety, health and environmental protection will differ from the ones business owners are accustomed to. Foreign entrepreneurs can learn more about doing business in the EU from our team who specializes in general offshore company formation and also includes experts that focus on EU countries in particular.
What to take into consideration before expanding on the EU market
Expanding the business in Europe is an important step and one that must take into consideration the EU regulations and guidelines that apply to all of the member states. These can be fundamentally different from those in other regions, so becoming accustomed to the EU regulations is an important step.
Investors can choose to work with our team of offshore company setup experts to find out what are the most notable EU market particularities and how they can comply with the requirements.
Jurisdictions to consider when expanding a business to Europe
A good location in Europe, good connectivity and infrastructure, a welcoming business climate and a good economy are just some of the qualities investors can look for in an ideal European jurisdiction. Of course, some countries are worth taking into consideration particularly because a certain business field is more developed there.
The list below includes some of the top countries to take into consideration when deciding to expand on the European market.
- The Netherlands: A country that is known for its multiculturality and whose heart is Amsterdam, the Netherlands welcomes foreign investors and offers a very attractive business climate with a corporate tax of 20% and 25% after a certain amount.
- Malta: More than a scenic location for doing business, Malta offers a good legal base for foreign investments, a favorable taxation system as well as incentives and grants.
- Cyprus: With a low corporate income tax rate of 12.5%, Cyprus is at the crossroads between several important markets, making it an ideal location to base a trading business.
- Ireland: The first and foremost advantage for foreign investors is that the official language is English. This is followed by a low corporate income tax, a good regulatory regime, and ease of doing business.
- Switzerland: One of the top financial centers in Europe, Switzerland offers a stable political and economic environment, highly skilled employees and a strategic location at the heart of Europe.
Two other Eastern European countries worth taking into consideration because of the low corporate income tax rate and lower employment costs (when compared to Western countries) are Bulgaria, with a corporate income tax rate of 10% and Romania, with a corporate income tax rate of 1% or 3% for micro-enterprises. Two options for offshore companies that levy zero tax on corporate profits are Isle of Man and Jersey. For more information, you can read our article on low tax locations in Europe or reach out to one of our agents.
Finding the most suitable location to base a business in Europe is a task that requires due diligence. Our team of offshore company formation agents can help you expand on the European market and our team members who specialize in EU jurisdictions can tell you more about the particularities of each country. Contact us for more information and specialized advice.