This article offers a concise summary of key findings from an international expansion overview prepared together with Accace Circle, a global business community of local BPO experts and advisors.
COMPANY FORMATION: KEY REQUIREMENTS, TIMELINES AND COSTS
Across the 17 countries analyzed, limited liability companies remain the most common and accessible business structure. This form is widely used in Bulgaria, the Czech Republic, Hungary, Latvia, Poland, Portugal, Romania, Slovakia, Spain, Turkey, Ukraine and Morocco. Estonia and Lithuania rely on private limited companies, Greece applies the IKE (private capital) model, while South Africa and the United Kingdom typically use private companies limited by shares (LTD).
Registration timelines differ significantly. Some markets offer exceptionally fast setups. In the UK, an LTD can be registered online within just a few hours. Estonia and Ukraine complete company formation in as little as 1 day (up to about 5 days). In Latvia, the process typically takes 1-3 business days, with expedited same-day registration available. Lithuania generally completes company formation within 3-5 business days when forms are in order. Other jurisdictions require more time: Bulgaria ranges from 1 day to 2 months, Poland usually takes 2-3 weeks and Slovakia up to 2 weeks. In Southern Europe, Portugal’s timeline ranges from 1 day to several weeks, while Spain typically takes between 5 days and 2 weeks.
The costs to start a business also vary. Baltic countries remain among the most affordable: Latvia’s registration fees range from 26 EUR to about 100 EUR (or 75 EUR when submitted electronically), Estonia’s state fees range from 200 EUR to 265 EUR for expedited procedures, and Lithuania’s governmental fees for electronic registration are up to 100 EUR. Higher fees are seen in Greece (1,000 EUR), Portugal (500 EUR to 1,500 EUR) and Spain, where costs can reach up to 2,000 EUR depending on the company type. By contrast, setting up a company in Ukraine is free through the State Registrar, whereas Morocco does not have a set minimum capital requirement.
CORPORATE TAX FRAMEWORKS: CIT, VAT AND TAX PERIODS
Understanding tax systems is essential before entering any new market. Corporate income tax (CIT) rates across these 17 countries range from some of the lowest globally to more moderate levels.
Corporate income tax rates vary widely. The Baltic countries follow distinct approaches: Latvia applies a 20% CIT only when profits are distributed (reinvested profits remain untaxed), Estonia applies a 22% CIT on distributed profits only, and Lithuania applies a 16% standard CIT (with reduced 6% or 0% rates for qualifying small companies). Hungary stands out with the lowest standard rate at 9%, while Bulgaria follows at 10%. Other Central and Eastern European countries, including Romania and the Czech Republic, generally fall between 15% and 20%. In contrast, Western European countries such as Spain and Portugal typically set their CIT rates between 20% and 25%. Turkey’s standard rate is 25%, South Africa applies 27% and Morocco uses a progressive system from 17.5% up to 34%, based on a company’s net earnings.
The way countries set their tax periods also differs. Latvia and Estonia use monthly tax periods due to their unique corporate tax systems, with CIT returns linked to profit distributions (Latvia) or the monthly declaration cycle (Estonia). Lithuania follows the calendar year by default but allows companies to select a different fiscal year if needed. Many other countries use the calendar year, but some, like the Czech Republic, Hungary, Romania, Slovakia and Turkey, offer flexibility, allowing companies to choose their fiscal year. The UK, Ukraine and South Africa require businesses to follow a fixed fiscal year.
Value-added tax (VAT) rules show similar diversity. Latvia applies a 21% standard VAT rate with 5% and 12% reduced rates, Estonia applies a 24% standard VAT rate from July 2025 with 9% and 13% reduced rates, and Lithuania applies a 21% standard rate with 5% and 9% reduced rates. Morocco’s standard VAT rate ranges between 8% and 20%, while South Africa sets it at 15%. Most European countries apply rates from about 20% to 27%, with lower or zero VAT rates available for particular goods and services.
LABOUR LAW AND EMPLOYMENT: PAYROLL, PIT AND CONTRIBUTIONS
Expanding internationally means adapting to different employment standards. Personal income tax (PIT) systems vary significantly. Estonia applies a flat 22% PIT rate, while Lithuania applies 20% PIT up to 126,533 EUR and 32% PIT above that threshold. Latvia applies progressive PIT rates of 25.5% and 33% (with an additional 3% surcharge on income exceeding 200,000 EUR). Bulgaria and Hungary use simple flat rates of 10% and 15%, while places like the UK, South Africa, Portugal and Spain apply higher progressive tax brackets that can reach up to 45-48%.
Social security and health insurance payments also differ. Employers in Spain and Greece typically pay some of the highest rates, sometimes more than 30%. In Central Europe, employer contributions are usually between 20% and 25%, while employee payments range from about 7% to 20%, depending on the country. South Africa and the UK both have much lower employer rates, and some countries include health insurance as part of social security rather than charging it separately. In Latvia, employers contribute 23.59% and employees 10.5%, with health insurance included within social contributions. Estonia requires employers to pay 33% social tax plus 0.8% unemployment insurance, while employees pay 1.6% unemployment insurance. Lithuania applies approximately 1.77% employer contributions plus a 0.16% payment to the Guarantee Fund, and employees contribute 19.5% (including health insurance).
Want the full comparison?
This article offers only the essential highlights. The full infographic provides a clear, country‑by‑country comparison, including:
- Key industries and investment opportunities
- Incentives available for investors
- Detailed tax rates
- Employment rules and thresholds
To access the complete version, visit the Accace website and download the international expansion infographic that was made possible thanks to the Accace Circle community members.
