The best low-tax jurisdictions in the EU: A choice for effective financial planning

In the conditions of globalization and the constant growth of competition, companies have to look for financial planning strategies to optimize tax expenses.

There are several low-tax jurisdictions in the European Union (EU) that are becoming attractive to businesses and investors.

In this article, we will look at the best low-tax jurisdictions in the EU, in which the specialists of Prikhodko & Partners Law Firm can provide you with support, and we will determine why they can be attractive for financial planning.

Luxembourg

Luxembourg is distinguished not only by a low corporate tax rate (usually 17%) but also by the presence of numerous treaties on the avoidance of double taxation with many countries of the world.

This makes Luxembourg an attractive place for the formation of holding companies and structures.

Ireland

Ireland has one of the lowest corporate tax rates in the EU - 12.5%.

The country also has an attractive infrastructure and innovation environment, especially for IT and pharmaceutical companies.

Malta

Malta is defined not only by a low corporate tax rate (usually 35%) but also by the possibility of obtaining a refund of 6/7 of the tax for foreign investors and corporations.

The country is also famous for its stability and friendly laws.

Netherlands

The Netherlands has a low corporate tax rate and a developed infrastructure for international business.

Their double taxation avoidance regime and system of agreements to reduce tax obligations are particularly attractive.

Latvia

Latvia, with a corporate tax rate of 20%, is attractive for businesses due to the simplicity of its tax system and access to the Baltic market.

In addition, the country regularly improves its legislation to attract investors.

Estonia

Estonia is known for its unique system of income taxation, where taxation occurs only when the income is withdrawn from the company.

This makes it attractive for technology startups and companies that actively invest in research and development.

Thus, choosing a low-tax jurisdiction in the EU is a choice that can help businesses and investors optimize their tax obligations and create favorable conditions for financial development. Each of the considered countries has unique features that can be decisive when choosing the optimal jurisdiction.

Let's briefly summarize the main advantages of each country:

Luxembourg is defined by a wide network of tax treaties and a low corporate tax rate, making it attractive for holding companies and financial institutions.

Ireland offers a low corporate tax rate and a highly developed technology environment, attracting technology companies to locate European bases.

Malta is noted for its stability and the possibility of tax refunds, creating attractive conditions for offshore operations and real estate investments.

The Netherlands has an extensive network of tax agreements and a highly developed infrastructure, creating optimal conditions for international business operations.

Latvia offers a simple tax system and access to the Baltic market, attracting companies in the logistics and transport sector.

Estonia is known for its innovative taxation system and promotes the development of technological start-ups and innovative enterprises.

Given the uniqueness of each jurisdiction, it is important to tailor your selection to the specific needs and strategies of your business or investment portfolio.

A thorough discussion with specialists and consideration of all risks and opportunities will help to make the optimal decision to achieve financial success.