By the US GO EU Editorial Team · Last updated July 11, 2026

29
European countries covered — 27 EU member states plus Switzerland and the UK — each with a full company formation guide built for American founders
9–25%
Range of corporate tax rates across EU member states — from Hungary's 9% (lowest in the EU) to France and Belgium near 25%; Switzerland's Canton Zug reaches 11.9% outside the EU
18.9%
The GILTI high-tax exclusion threshold — the most important number for American founders choosing a European jurisdiction; rates below this create additional US tax on undistributed profits
Choose Your Country

Company Formation Guides — All 29 Countries

All 29 country guides below are complete and live. Each covers entity types, corporate tax rates, GILTI implications, step-by-step registration process, formation costs, and post-registration compliance. EU member states are shown in amber; non-EU jurisdictions (Switzerland and UK) in dark.

AustriaGmbH · 23% CIT BelgiumBV/SRL · 25% CIT BulgariaOOD · 10% CIT Croatiad.o.o. · 10/18% CIT CyprusLtd · 12.5% CIT Czechias.r.o. · 19% CIT DenmarkApS · 22% CIT EstoniaOÜ · 0% retained FinlandOy · 20% CIT FranceSAS/SASU · 25% CIT GermanyGmbH · ~28–33% GreeceIKE · 22% CIT HungaryKft · 9% CIT IrelandLtd · 12.5% CIT ItalySRL · 24% IRES LatviaSIA · 0% retained LithuaniaUAB · 5/15% CIT LuxembourgS.à r.l. · ~24% CIT MaltaLtd · ~5% effective NetherlandsBV · 19/25.8% CIT PolandSp. z o.o. · 9/19% PortugalLda · 17/21% IRC RomaniaSRL · 1%/16% CIT Slovakias.r.o. · 15/21% CIT Sloveniad.o.o. · 19% DDPO SpainSL · 15/25% IS SwedenAB · 20.6% CIT Switzerland ↗GmbH · 11.9–20.5% · Non-EU United Kingdom ↗Ltd · 19/25% CT · Post-Brexit
Programme Comparison

All 29 Countries — Corporate Tax & GILTI at a Glance

Ordered by corporate tax rate, lowest to highest. The 18.9% GILTI threshold column indicates whether American owners face additional US tax on undistributed profits. All guides are complete and linked.

Country Entity CIT Rate Currency GILTI Position Formation
Hungary →Kft9%HUFExposedMandatory attorney
Bulgaria →OOD/EOOD10%EuroExposed2–4 weeks
Croatia →d.o.o.10% / 18%EuroExposed (10%)3–5 weeks
Switzerland →GmbH / AG11.9–20.5%CHFExposed (low cantons) Non-EUNotary, CHF 20k capital
Ireland →Ltd12.5%EuroExposed1–2 weeks
Cyprus →Private Ltd12.5%EuroExposedNo US treaty
Lithuania →UAB5% / 15%EuroExposed (5% & 15%)2–4 weeks
Malta →Ltd~5% effectiveEuroExposedNo US treaty
Romania →SRL1%/3% micro · 16% stdRONExposed (micro)3–7 days, RO e-Factura
Estonia →OÜ0% retained / 20% dist.EuroExposed (0%)e-Residency available
Latvia →SIA0% retained / 20% dist.EuroExposed (0%)e-Registration
Slovakia →s.r.o.15% / 21%EuroExposed (15%) Safe (21%)2–5 days eZbox
Portugal →Lda17% / 21%EuroMarginal (17%) Safe (21%)Empresa na Hora
United Kingdom →Ltd19% / 25%GBPMarginal (19%) Safe (25%) Post-Brexit£12 · Same day
Czechia →s.r.o.19%CZKMarginal2–4 weeks
Netherlands →BV19% / 25.8%EuroMarginal (19%) Safe (25.8%)1–2 weeks · €0.01 capital
Slovenia →d.o.o.19%EuroMarginal1–2 weeks, Balkans gateway
Finland →Oy20%EuroSafeBIS portal
Sweden →AB20.6%SEKSafeBolagsverket, EEA board req.
Poland →Sp. z o.o.9% / 19%PLNExposed (9%) Safe (19%)JPK digital reporting
Italy →SRL24% IRES + 3.9% IRAPEuroSafeSDI e-invoicing mandatory
Greece →IKE / EPE22%EuroSafeGEMI, AFM required first
Denmark →ApS22%DKKSafeVirk portal, MitID barrier
Luxembourg →S.à r.l.~24% (NWT adds)EuroSafeParticipation exemption ~0%
Spain →SL15% new / 25% stdEuroExposed (15%) Safe (25%)NIE required first · 4–8 wks
Austria →GmbH23%EuroSafe€10k capital (€5k paid), notary
Belgium →BV/SRL25%EuroSafeNID deduction, 8 counters
France →SAS/SASU25%EuroSafeGuichet Unique, JAL
Germany →GmbH~28–33% combinedEuroSafeHandelsregister, notary
Registering a company in Europe is not one decision — it is a category of decisions. Corporate tax rate, GILTI exposure, entity type, mandatory notarization, minimum capital, e-invoicing obligations, and the distance from the EU single market all vary dramatically between jurisdictions. The right answer depends entirely on your business model, income structure, and US tax position.
US GO EU — Work & Invest in Europe Guide
How It Works

European Company Formation: What Americans Need to Know First

Registering a European company as an American involves two parallel sets of obligations — the European country's local company law and registration requirements, and the US tax obligations that apply to all American citizens and Green Card holders regardless of where they live or operate. Understanding both before you incorporate is not optional.

The European Side
Entity Type. Register. Comply. Trade.
LLC · GmbH · SRL · BV · ApS · s.r.o. · OÜ · Ltd · AB
Each European country has its own limited liability company equivalent — the GmbH in Germany and Austria, the SRL in Italy and Romania, the BV in the Netherlands, the ApS in Denmark, the OÜ in Estonia, the AB in Sweden. Each requires a different minimum capital, different notarization rules, a different registration authority, and different ongoing compliance obligations including VAT, corporate tax returns, annual accounts, and beneficial owner registrations. Some countries require mandatory e-invoicing from the first invoice; others have no such requirement. Some require a resident director or board member; others accept fully non-resident ownership and management.
The US Side — Non-Negotiable
Worldwide Tax. GILTI. FBAR. CFC.
GILTI · Form 5471 · FBAR · Subpart F · LOB · FATCA
The US taxes its citizens and Green Card holders on worldwide income regardless of where their company is registered. Owning a European company creates Controlled Foreign Corporation (CFC) reporting obligations (Form 5471), FBAR reporting for foreign bank accounts over $10,000, and GILTI inclusion for companies paying corporate tax below 18.9%. Tax treaties with most EU countries (and the UK and Switzerland) prevent true double taxation — but the treaty benefits require careful structuring to claim. Every country guide in this series details the specific US tax implications, GILTI position, and treaty interaction in full. Engage a US cross-border tax advisor before incorporating.
Find Your Match

Which Jurisdiction Fits Your Business Profile?

If simplicity and speed are the priority — UK, Estonia, Latvia, or the Netherlands
The UK Ltd is registered online with Companies House for £12 in under 24 hours — no notarization, no minimum capital, no mandatory in-person presence. It is the fastest and cheapest formation in this entire series. Estonia's OÜ via e-Residency is fully remote and digital — the EU's most accessible formation for non-resident founders who want an EU entity. Latvia's SIA can be registered electronically through the Latvian e-registration portal with a minimum capital of €1 per share and a similarly streamlined process — and like Estonia, Latvia's deferred corporate tax model (0% on retained profits, 20% on distributed) makes early-stage financial planning straightforward. The Netherlands' Flex-BV has a minimum capital of just €0.01 and a streamlined online formation. All four are appropriate for American founders who prioritise operational simplicity — though the UK's post-Brexit status means it no longer provides EU single market access. UK Ltd →  Estonia OÜ →  Latvia SIA →  Netherlands BV →
If tax rate matters and GILTI is managed — Ireland, Cyprus, or Bulgaria
Ireland's 12.5% trading rate, Cyprus's 12.5% CIT with IP Box, and Bulgaria's 10% flat tax are the EU's lowest headline corporate rates. All three fall below the GILTI high-tax exclusion threshold of 18.9% — meaning American owners face GILTI inclusion on undistributed profits without specific structuring. For founders who have worked with a US cross-border tax specialist to manage GILTI (through check-the-box elections, blocker structures, or treaty elections), these rates represent genuinely competitive European tax bases. Ireland and Cyprus also offer well-developed English-language professional services ecosystems. Ireland Ltd →  Cyprus Ltd →  Bulgaria OOD →
If GILTI exclusion is the priority — Sweden, Austria, Germany, or France
Sweden (20.6%), Austria (23%), Germany (~28–33%), and France (25%) all pay corporate tax clearly above the GILTI high-tax exclusion threshold — meaning American owners of companies in these jurisdictions can expect their undistributed EU profits to qualify for the GILTI exclusion without specific structuring. The Netherlands (19%) and Slovenia (19%) are marginally above the threshold and should be confirmed annually. For American founders who want a clean GILTI position without specialist structuring, these higher-rate jurisdictions provide structural simplicity at the cost of a higher European tax bill. Sweden AB →  Austria GmbH →  Germany GmbH →
If EU single market access is the goal — any EU member state
Any of the 27 EU member states in this series provides full EU single market access — free movement of goods, services, capital, and people, plus the right of establishment and freedom to provide services across all other member states. Switzerland and the UK do not provide this — Switzerland operates under bilateral agreements with the EU, and the UK left the EU single market on 31 December 2020. For American companies whose primary objective is operating across EU markets, building a team across the EU, or accessing EU regulatory frameworks (including financial services passporting), the choice of EU jurisdiction matters — but any EU member state provides the foundational single market access that neither Switzerland nor the UK can offer. Ireland →  Netherlands →  Estonia →
If cost of formation and ongoing compliance is the priority — Romania, Bulgaria, Latvia, or Estonia
Romania's SRL has the lowest minimum share capital in the EU (~€40 / 200 RON), the lowest absolute formation costs, and professional services rates that are a fraction of Western European equivalents. Bulgaria's OOD requires just €1 minimum capital (since Bulgaria's euro adoption on 1 January 2026) and very low notarization costs. Latvia's SIA offers e-registration, a low minimum capital structure, and one of the most streamlined registration processes in the Baltic region — combined with Latvia's deferred tax model (0% on retained profits), ongoing compliance costs are minimal for companies that reinvest rather than distribute. Estonia's OÜ can be formed remotely via e-Residency with a minimal capital requirement. All four provide full EU single market access at dramatically lower cost than Western European formations. For American founders building early-stage European entities where cost matters, the Eastern European and Baltic options provide EU single market membership without the premium overhead of Germany, France, or Benelux. Romania SRL →  Bulgaria OOD →  Latvia SIA →  Estonia OÜ →
Key Considerations

What Every American Founder Must Know Before Registering in Europe

The GILTI threshold of 18.9% is the most important number in your European jurisdiction decision
GILTI (Global Intangible Low-Taxed Income) requires American shareholders of Controlled Foreign Corporations to include undistributed CFC profits in their US taxable income if the foreign country's effective tax rate is below 18.9%. Every EU country with a rate below this threshold — Hungary (9%), Bulgaria (10%), Ireland (12.5%), Cyprus (12.5%), Lithuania (5%/15%), Malta (~5% effective), Estonia (0% retained), Latvia (0% retained), Romania micro (1%/3%) — creates GILTI exposure for American owners unless specifically structured around it. The standard corporate rate of the country is not always the effective rate — check what rate actually applies to your expected profits before selecting a jurisdiction.
Mandatory notarization adds cost and time in most Continental European jurisdictions
The UK, Ireland, the Netherlands (Flex-BV), and Estonia require no notarization for company formation — registration is entirely administrative. France (mandatory JAL publication), Germany, Austria, Spain, Italy, Portugal, Belgium, Luxembourg, Slovakia, Slovenia, Romania, Croatia, Hungary, Greece, Latvia, Lithuania, Czechia, Poland, Denmark, Finland, Sweden, and Switzerland all require some form of notarial certification of the founding documents. For non-resident American founders who cannot attend in person, a notarized and apostilled power of attorney to a local representative is the standard workaround — but it adds cost, time, and at least one additional legal engagement to the formation process. Factor this into your timeline and budget.
Mandatory e-invoicing systems in Italy, Poland, Romania, and Portugal are compliance prerequisites from day one
Italy (SDI), Poland (JPK-FA), Romania (RO e-Factura), and Portugal (SAF-T) all operate mandatory electronic invoicing systems that require compatible accounting software before you can issue a legal B2B invoice. Slovenia, Sweden, Germany (voluntary as of 2025 with expansion planned), and the UK do not currently have mandatory B2B e-invoicing — a meaningful compliance simplicity advantage. If you are registering in one of the mandatory e-invoicing jurisdictions, your accounting setup must be operational before your first transaction, not after. Ensure your accountant and software are e-invoicing compliant from day one.
Non-euro countries add FX risk — CZK, HUF, PLN, RON, DKK, SEK, GBP, and CHF are not euro
Of the 29 countries in this series, 9 do not use the euro: Czechia (CZK), Hungary (HUF), Poland (PLN), Romania (RON), Denmark (DKK), Sweden (SEK), the UK (GBP), and Switzerland (CHF). Croatia adopted the euro in 2023 and Slovakia in 2009. For American companies with euro-denominated revenues or EU-based costs, registering in a non-euro country adds a structural FX conversion layer to every transaction. This is manageable with multi-currency banking but must be modelled explicitly.
Switzerland and the UK are not in the EU — and that distinction has grown more consequential since Brexit
Switzerland has never been an EU member and operates under a complex set of bilateral agreements that provide sector-specific EU access — not single market membership. The UK left the EU single market on 31 December 2020. A Swiss or UK company cannot automatically provide services, passport financial products, or establish branches across EU member states under EU regulatory frameworks. For American founders whose business requires EU regulatory approval (MiFID II for fintech, medical device CE marking, GDPR data controller status as an EU entity), Switzerland and the UK are the wrong answer. For founders serving UK or global markets, or using Switzerland for holding structures, they remain excellent jurisdictions — but the EU access question must be answered first.
How to Use This Guide
  • →Start with the GILTI question — is your expected European profit level likely to be taxed above or below 18.9%? If below, you need US cross-border tax advice before selecting a low-rate jurisdiction.
  • →Determine whether EU single market access is a core requirement. If yes, Switzerland and the UK are ruled out — choose any of the 27 EU member states. If no, all 29 countries are in scope.
  • →Match your operational profile to the jurisdiction: technology and startups → Estonia, Ireland, Sweden, Netherlands; manufacturing and supply chain → Slovakia, Poland, Czech Republic, Romania; holding and international structure → Luxembourg, Netherlands, Switzerland (non-EU); lowest cost EU formation → Romania, Bulgaria, Estonia.
  • →Read the full country guide for your shortlisted jurisdictions — each covers entity types, registration steps, formation costs, ongoing compliance, and the full US tax implications including GILTI, FBAR, and treaty treatment.
  • →Book a free consultation — we match you with the right local attorney, accountant, and US cross-border tax advisor for your specific jurisdiction and business structure.