EU: Access the Single Market

Opening and Managing EU Companies

The European Union (EU) provides some of the world’s most attractive jurisdictions for company formation, offering a range of tax-efficient structures, access to a vast consumer market, and regulatory stability. Whether you’re looking for the low-tax environment of Cyprus, the innovative digital framework of Estonia, or special economic zones in Spain and Portugal, each jurisdiction offers unique opportunities tailored to specific business needs.

At Wealthlocity, we specialize in forming and managing companies across the EU, ensuring compliance, maximizing tax benefits, and aligning structures with your strategic objectives.

Why Form a Company in the EU?

1. Tax Efficiency

  • Many EU jurisdictions provide favorable tax regimes for businesses, including low corporate tax rates, tax-neutral structures, and access to over 130 double taxation treaties.
  • Jurisdictions like Estonia, Cyprus, and special zones in Portugal and Spain offer unique advantages to optimize tax efficiency.

2. Access to the EU Single Market

  • A company registered in an EU country can trade freely across the bloc, giving access to over 27 countries and 450 million consumers.
  • Ideal for businesses involved in e-commerce, technology, and international trade.

3. Legal and Regulatory Stability

  • The EU provides a robust and transparent regulatory framework, fostering investor confidence and ensuring business protection.
  • Compliance with EU standards opens doors to international funding and partnerships.

4. Industry-Specific Advantages

  • Some jurisdictions specialize in certain industries, such as gaming and fintech in Malta or logistics and shipping in Madeira.

5. Diverse Structures

  • Flexible options like Limited Companies, partnerships, and sole proprietorships allow businesses to choose structures that suit their goals and operations.

Key EU Jurisdictions for Company Formation

1. Estonia: 0% Tax on Undistributed Profits

  • Why Choose Estonia?
    • Estonia is a pioneer in digital business solutions, offering a 0% corporate tax on undistributed profits.
    • The e-Residency program enables entrepreneurs worldwide to establish and manage Estonian companies remotely, providing unparalleled ease of access.
  • Key Benefits:
    • Tax is only payable (20%) on distributed profits, meaning companies can reinvest earnings tax-free.
    • Fully digital administration for incorporation, banking, and compliance.
    • Excellent reputation for transparency and innovation.
  • Ideal For:
    • Technology and software startups.
    • Remote businesses and digital nomads.
    • Entrepreneurs seeking low-maintenance, tax-efficient structures.

2. Cyprus: Tax Efficiency with the Non-Dom Regime

  • Why Choose Cyprus?
    • Cyprus offers a 12.5% corporate tax rate, one of the lowest in the EU, alongside its non-domicile (non-dom) regime for foreign individuals.
    • Under the non-dom regime, non-resident individuals are exempt from taxation on dividends, interest, and rental income earned abroad.
  • Key Benefits:
    • No withholding taxes on dividends, interest, and royalties paid to non-residents.
    • Access to over 60 double taxation treaties for optimized international tax planning.
    • Straightforward incorporation process with minimal bureaucracy.
  • Ideal For:
    • International investors and holding companies.
    • Businesses seeking a base for trade in Europe and the Middle East.
    • Entrepreneurs looking for tax-efficient corporate structures with personal tax benefits.

3. Canary Islands, Spain: Special Economic Zone (ZEC)

  • Why Choose the Canary Islands?
    • The Canary Islands operate a Special Economic Zone (ZEC), offering a reduced corporate tax rate of 4% for qualifying businesses.
    • Strategically located at the crossroads of Europe, Africa, and Latin America, the Canary Islands provide logistical and operational advantages for international trade.
  • Key Benefits:
    • 4% corporate tax for ZEC-registered businesses, compared to Spain’s standard 25%.
    • Exemptions or reductions on VAT and customs duties for trade activities.
    • Access to Spain’s extensive network of double taxation treaties.
  • Ideal For:
    • International trade, logistics, and shipping companies.
    • Renewable energy and technology ventures.
    • Businesses seeking a competitive tax rate with global reach.

4. Madeira and Azores, Portugal: International Business Centers

  • Why Choose Madeira or Azores?
    • These Portuguese islands host International Business Centers (IBCs), offering reduced corporate tax rates and incentives for qualifying companies.
    • Madeira’s IBC, in particular, provides a well-regulated environment within the EU framework, ideal for international operations.
  • Key Benefits:
    • Corporate tax rates as low as 5% for IBC-licensed companies.
    • Exemptions on withholding taxes for dividends, interest, and royalties paid to non-residents.
    • Access to EU funding and trade agreements.
  • Ideal For:
    • Shipping, trade, and financial services.
    • Real estate investment and management companies.
    • Entrepreneurs seeking a low-tax EU jurisdiction.

5. Malta: Licensing Hub for Gambling and Fintech

  • Why Choose Malta?
    • Malta is a global leader in licensing for online gaming, gambling, and fintech industries, with the Malta Gaming Authority (MGA) setting high regulatory standards.
    • Corporate tax refunds for shareholders reduce the effective tax rate to as low as 5%.
  • Key Benefits:
    • Licensing solutions for gaming, crypto, and financial services businesses.
    • Access to EU markets and a highly skilled workforce.
    • A strong legal framework supporting blockchain, cryptocurrency, and fintech innovation.
  • Ideal For:
    • Online gambling and gaming operators.
    • Fintech startups and crypto-related ventures.
    • Businesses requiring EU regulatory approval in niche industries.

How Wealthlocity Can Help

At Wealthlocity, we provide comprehensive support for forming and managing EU companies, ensuring they are compliant, tax-efficient, and aligned with your strategic goals.

1. Business Structure Consultation

We help you choose the ideal jurisdiction and structure based on your objectives:

  • Estonia for digital businesses with 0% tax on retained earnings.
  • Cyprus for tax-efficient personal and corporate structures under the non-dom regime.
  • Madeira or the Canary Islands for low-tax international trade.

2. Company Formation Services

We handle every step of the incorporation process, including:

  • Drafting and filing required documentation with local authorities.
  • Registering for tax and social security systems.
  • Setting up industry-specific licenses in jurisdictions like Malta.

3. Tax Optimization

  • Structuring companies to leverage 0% tax rates or reduced corporate tax environments.
  • Advising on double taxation treaties to minimize international tax burdens.
  • Ensuring compliance with EU and local tax regulations.

4. Licensing and Compliance

  • Assisting with applications for gaming licenses in Malta or Canary Islands’ ZEC approvals.
  • Ensuring compliance with regulatory frameworks for all jurisdictions.

5. Banking and Payment Solutions

  • Opening business bank accounts in your chosen EU jurisdiction.
  • Facilitating integration with payment processors and financial platforms.

6. Ongoing Administration and Support

  • Filing annual accounts, tax returns, and regulatory compliance reports.
  • Maintaining statutory registers and corporate governance documents.
  • Monitoring changes in laws and regulations to ensure continued compliance.

Why Choose Wealthlocity?

  • Comprehensive Expertise: We have in-depth knowledge of diverse EU jurisdictions and their benefits.
  • Tailored Solutions: Each company is structured to meet your specific business goals.
  • Global Reach: We specialize in helping international clients establish operations in the EU.
  • End-to-End Support: From formation to ongoing management, we handle every detail.
  • Hands-Off Policy: We never access your funds or accounts. All operations remain fully under your control.

Take the First Step Toward EU Business Success

Whether you’re forming a tech-driven company in Estonia, leveraging the tax advantages of Cyprus, or exploring special economic zones in Portugal and Spain, Wealthlocity offers the expertise and resources to ensure your success.

Contact us today to schedule a consultation and start building your EU-based business with Wealthlocity.

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