More and more countries around the world are creating favorable conditions for digital nomads: introducing special permits, simplifying the entry procedure and even approving preferential tax legislation. Find out which European countries offer the most favorable conditions for remote workers

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With the development of remote work, many freelancers are considering the possibility of tax migration to European countries. It is not only about reducing taxes, but also about taking advantage of the favorable business environment and special regimes for digital nomads. Here is an overview of what some European countries offer for independent professionals.

1. Bulgaria

- Tax rate: 10% on all income (5% on dividends).

- Advantages: freelancers can deduct 25% on operating expenses without justification, which reduces the effective rate to 7.5%.

2. Romania

- Tax rate: 10% plus social contributions (10% for health insurance, 25% for pension contributions).

- Features: IT freelancers, such as software or game developers, can register a company and pay only 3% of gross income up to €0.5 million.

3. Cyprus

- Tax rate: 0% on dividends (with minimal social security contributions) and 20–35% on active income.

- Benefits: New non-domiciled residents receive a 17-year tax exemption on dividends and other passive income.

4. Croatia

- Tax rate: 20% on income up to €47,780 and 30% on income above this amount.

- Special regime: Freelancers earning around €40,000 can use the Paušalni obrt regime with a flat tax rate of 12%. Digital nomads with a visa are exempt from tax on income from abroad, as well as from social security contributions if they work outside Croatia.

5. Greece

- Tax rate: 9–44% on active income (5% on dividends).

- Benefits: Greece offers a 50% income tax reduction for digital nomads for 7 years. This reduces the maximum rate to 22% and the minimum to 4.5%.

6. Italy

- Tax rate: 15% under the Forfettario regime (5% for the first five years) with an annual income threshold of €85,000.

- Benefits: New residents receive a 50% income tax exemption (up to €600,000 per year) provided they have not been tax residents of Italy for the last three years. This regime is valid for up to five years.

7. Portugal

- Tax rate: 14.5–48%.

- Features: The Non-Habitual Residency program allows highly skilled professionals to pay only 20% tax on active income for 10 years. Income from abroad that is already taxed in other countries is exempt from tax in Portugal.

8. Spain

- Tax rate: 19–47%; investment income is taxed at a rate of 19–28%.

- Advantages: Digital nomads can pay a flat rate of 24% on income up to €600,000. Amounts above this threshold are taxed at a rate of 45%.

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Why is tax migration beneficial for freelancers?

1. Cost optimization

European countries offer favorable tax regimes that allow you to keep more income.

2. Access to international markets

Changing tax residency simplifies legal cooperation with international clients and companies.

3. Supporting digital nomads

Many countries are creating programs specifically designed for remote workers, with tax benefits and flexible terms.

4. Stability and transparency

Transparent tax systems provide certainty and the ability to plan for long-term financial goals

What to consider before moving?

- Income threshold: Does your income meet the conditions for a preferential regime?

- Social contributions: Consider additional costs for health insurance and pension.

- Tax treaties: Check if the country has double taxation agreements with your country.

- Residency obligations: Check residency requirements, such as the minimum number of days you must stay in the country.

Tax migration opens up new opportunities for freelancers looking to optimize their finances and enjoy the benefits of living and working in a different environment.

Europe offers a wide range of preferential conditions and support for digital nomads, allowing professionals to develop and reach new heights.

Let's remind you! Iceland is a promising country for expat employment, but any move is always associated with bureaucratic difficulties. We have already told you about the legal aspects of getting a job in Iceland and how to solve them.

Ihor Usyk - head of Visit World's legal department

To organize a safe move to Sweden, I advise you to contact a specialist. My colleagues, qualified specialists with legal education, will help you avoid unpleasant situations when traveling abroad.

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