However, achieving success in a new market means recognizing that each nation has its own unique laws, tax policies and employment standards. The steps for registering a company, the rates for corporate taxes, payroll requirements and labor regulations can all vary greatly from one country to another. These differences will impact how quickly a business can start operating, the overall expenses involved and the compliance obligations from the very beginning.
This article provides a brief overview of important insights from an international expansion report assembled in cooperation with Accace Circle, a global business community of BPO specialists and advisors. Its 2026 edition compares the business environments of 13 countries: Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Lithuania, Poland, Romania, Slovakia, Spain, Turkey and Ukraine.
Company formation: Timelines, forms and fees
Among the 13 countries reviewed, the most popular and accessible company type is the limited liability company. This form is widely used in Bulgaria, the Czech Republic, Hungary, Poland, Romania, Slovakia, Spain, Turkey and Ukraine. In Estonia and Lithuania, the private limited company is the standard choice, while Greece commonly uses the IKE model. Cyprus typically uses a limited company.
The process and speed of setting up a business depend on the country. Some jurisdictions make it possible to complete incorporation within only a few days. Ukraine offers registration through the State Registrar within 24 hours, while Romania generally requires three working days. In Lithuania, the process typically takes three to five business days. Estonia and Greece both report an estimated incorporation period of around five days.
Other countries have longer or more variable timelines. Establishing a company in the Czech Republic or Turkey takes approximately one week, while Slovakia may require up to two weeks. Poland generally takes two to three weeks and Cyprus around three to four weeks. Bulgaria has the widest estimated timeframe, ranging from one day to two months. In Spain, company formation usually takes between five days and two weeks.
The cost of registering a business also changes from country to country. Estonia remains among the more affordable jurisdictions, with fees ranging from EUR 200 to EUR 265. Lithuania charges approximately EUR 100, Poland around EUR 116 and the Czech Republic about EUR 248. Bulgaria’s fees range from approximately EUR 29 to EUR 107.
Higher costs may apply elsewhere. Greece reports incorporation expenses of around EUR 1,000, while fees in Spain range from EUR 150 to EUR 2,000 depending on the company type and circumstances. In Cyprus, businesses pay the service provider’s fee plus related disbursements. Hungary, Romania and Ukraine may offer incorporation without a standard registration fee under certain conditions.
Corporate tax frameworks: Comparing CIT, VAT and tax periods
Knowing the details of each country’s tax system is vital for understanding the ongoing costs of operating internationally. Corporate income tax rates differ widely among the 13 markets, from competitive single-digit taxation to standard rates reaching 25%.
Hungary stands out with the lowest standard corporate income tax rate, at 9%, while Bulgaria follows at 10%. Cyprus applies 15%, Romania 16%, Lithuania 17%, Ukraine 18% and Poland 19%. The Czech Republic has a standard rate of 21%.
Estonia applies a 22% corporate income tax rate to distributed profits, while undistributed profits are not subject to annual corporate income tax. Greece also applies a standard rate of 22%. At the upper end of the comparison, Spain and Turkey both apply 25%. Slovakia uses rates from 10% to 24%, depending on the company’s annual taxable revenue.
The rules for tax periods also differ depending on the location. Bulgaria, Greece, Lithuania, Poland, Spain and Ukraine generally follow the calendar year. Cyprus, the Czech Republic, Hungary, Romania, Slovakia and Turkey allow either a calendar or fiscal year. Estonia takes a distinctive approach by using a calendar-month tax period, reflecting the way its corporate taxation system treats distributed profits.
Value-added tax frameworks are similarly varied. The standard VAT rate is lowest in Cyprus, at 19%, and highest in Hungary, at 27%. Bulgaria, Turkey and Ukraine apply 20%, while the Czech Republic, Lithuania, Romania and Spain use 21%. Poland and Slovakia apply 23%.
Estonia’s standard VAT rate is 24%, the same as in Greece. Estonia also applies reduced rates of 13% or 9% to qualifying supplies, while exports of goods may benefit from a zero rate. Other participating markets likewise offer reduced or zero rates for specified products, services and transactions.
Labour law and employment: Payroll, PIT and contributions
When entering a new country, it is important to understand the employment rules that apply in that location. Personal income tax rates vary greatly, with some jurisdictions using flat taxation and others applying several progressive bands.
Bulgaria and Romania both apply a standard personal income tax rate of 10%, while Hungary uses a flat rate of 15%. Ukraine applies an 18% rate together with an additional military tax of 5%. Estonia’s standard personal income tax rate is 22%.
Progressive taxation is used in several other participating countries. The rates range from 0% to 35% in Cyprus, 12% to 32% in Poland and 20% to 32% in Lithuania. Slovakia applies bands from 19% to 35%, Turkey from 15% to 40%, Greece from 9% to 44% and Spain from 19% to 47%. The Czech Republic applies rates of 15% and 23%, depending on annual income.
Another key issue is the amount employers and employees must pay for social security and health coverage. Estonia has one of the highest headline employer contribution rates in the study. Employers pay social tax of 33%, together with an additional unemployment insurance contribution of 0.8%. The standard employee contribution shown in the comparison is 1.6%.
The balance between employer and employee costs differs substantially elsewhere. Employer contributions amount to 30.57% in Spain, excluding a variable occupational accident rate, 25.2% in Slovakia and 24.8% in the Czech Republic. By comparison, Lithuania applies an employer rate of 1.7% for standard contracts, while Romania charges employers a separate labour insurance contribution of 2.25%.
Employee contributions range from relatively low rates in Estonia and Spain to 19.5% in Lithuania and 25% in Romania. Health insurance is included within the broader social security system in Estonia and several other countries, while some jurisdictions calculate it as a separate contribution.
Want the full comparison?
This brief overview shows just the most important facts. For a full, easy-to-read comparison by country, see the complete infographic, which covers:
Key industries and investment opportunities
Incentives for investors
Tax rates with more details
Employment rules and thresholds
To access the complete version, visit the Accace website and download the full international expansion infographic.
From local to global: Your expert guide for cross-border growth
This infographic is brought to you by the Accace Circle business community. Access practical insight from industry experts across 60+ countries within Accace Circle, shared through ongoing webinars, podcasts and publications, to support your international expansion.
