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International expansion: Useful overview of 15 countries for investors | eBook

August 14, 2024
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Accace - international expansion

The world is becoming more interconnected than ever before. This brings a set of opportunities for international expansion not only for big corporations, but also small and medium-size enterprises that can expand their businesses globally. When carefully planned, international expansion and entering new markets can not only increase profits, but also reduce risks while rocket-launching growth on an international scale. However, the difference among jurisdictions, market specifics, customs, traditions and the business environment in general significantly affect which country has the best to offer and which are providing less benefits to specific types of businesses.

This overview for international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 15 countries. The infographic layout allows you to quickly breeze through the specifics of international expansion and compare key data that may be crucial for your ambitions of international expansion.

Download the full international expansion guide as a free PDF, or see some selected data below

How we can help with international expansion

International expansion and entering a new market can be a piece of cake with the right partner by your side. Whether you are just about to expand your business or you are starting from zero with entrepreneurship, our team of local experts can help you design the right business solutions for you. We specialise in providing full-range advisory and BPO services to keep your tax, legal and corporate agenda, accounting, reporting, payroll and HR operations not only effective and accurate, but also 100% compliant with your local duties and regulatory requirements.

To help you get started, we offer a free 60 minute call focusing on market entry where you can discuss your investment plans, understanding country specifics and discuss basic tax and legal aspects of international expansion with a selected expert. Head over to our eShop to book your call today!


Company formation

What would be the best entity type for your international expansion? See below the most common legal forms of business per country to make a better decision, including information on incorporation time and incorporation fee.

Most common legal form of business

Limited liability company

Bulgaria, Czech Republic, Egypt, Hungary, Poland, Morocco, Portugal, Romania, Slovakia, Spain, Turkey

Private limited company

Estonia

Private company (IKE)

Greece

Private company – limited by shares (LTD)

 South Africa, United Kingdom

Joint-Stock Company (Sociedade Anónima – SA)

Portugal

Incorporation time

Bulgaria
1 day till 2 month

%
Czech Republic
1 week

%
Egypt
10 days

%
Estonia
5 days

%
Greece
5 days

%
Hungary
1 to 15 days

%
Morocco
10 working days

%
Poland
2-3 weeks

%
Portugal
1-2 days till 2-3 weeks

%
Romania
3 working days

%
Slovakia
2 weeks max.

%
South Africa
5-10 business days

%
Spain
4-5 days

%
Turkey
7 days

%
United Kingdom
3-5 hours

%

Incorporation fee

Bulgaria
cca EUR 85 – 110

%
Czech Republic
EUR 850

%
Egypt
USD 1,800 (EUR 1,633)

%
Estonia
EUR 200 – 265 

%
Greece
EUR 1,000

%
Hungary
0 *

%
Morocco
0 **

%
Poland
PLN 600 (EUR 139.7)

%
Portugal
EUR 500 – 1,500

%
Romania
0 ***.

%
Slovakia
EUR 235

%
Spain
EUR 150 – 2,000

%
United Kingdom
0 ****

%

* Depends on the nature of the legal form of the company; duty free for LLC

** The capital is freely determined

*** There are no fees applicable for the Trade Register, however Official Gazette fees for publishing documents will be applied.

**** Official expenses to the Trade Registry, notary, translation and tax office (for stamp tax)

No costs specified for South Africa and Turkey

Official company registers


Corporate tax

International expansion brings a number of new tax challenges. Get familiar with CIT, VAT and tax period.

CIT rates

Bulgaria

Standard rate
10%

%

Czech Republic

Standard rate
19%

%
Reduced rate
15%*

%
Reduced rate
5%**

%

*Reduced rate applies on dividend income of Czech tax resident entities from non-resident entities

**Reduced rate applies on certain investment fund profits

0% on pension funds

Egypt

Standard rate
22.5%

%

Estonia

Standard rate
20%

%
Reduced rate
14%*

%

*Automatically applied to the amount of profit distributions, which are equal or less than average distributed profits of the last 3 calendar years, on which the company has paid the  CIT

Greece

Standard rate
22%

%

Hungary

Standard rate
9%

%

Morocco

Standard rate
12.5-32% *

%

*12.5% on net income below MAD 300,000; 20% for net income between MAD 300,000 and MAD 1,000,000; 28.25% for net income between MAD 1,000,001 and MAD 100,000,000; 32% for net income above MAD 100,000,000

Poland

Standard rate
19%

%
Reduced rate
9%*

%

*For small taxpayers, and taxpayers starting up a business

Portugal

Standard rate
21%*

%
Standard rate
14.7%**

%

*Standard rate in mainland Portugal

**Standard rate in the Autonomous Regions of Madeira and Azores

Romania

Standard rate
16%

%
Reduced rate
5%*

%

*On the revenue of gambling companies and nightclubs or 16% on the taxable profit, based on which is higher

Slovakia

Standard rate
21%

%
Reduced rate
15%*

%

*On annual taxable revenues below EUR 60,000

South Africa

Standard rate
27%

%

Spain

Standard rate
25%

%
Reduced rate
15%*

%

*Reduced rate applies for newly created companies

Turkey

Standard rate
25%

%

United Kingdom

Standard rate
25%

%
Reduced rate
19%*

%

*On profit over GBP 50,000 but below GBP 250,000

Tax period

Calendar year

Bulgaria, Egypt*, Greece, Morocco, Poland, Portugal

*Each company has the decision to adjust its financial year

 

Calendar or fiscal year

Czech Republic, Hungary, Romania, Slovakia, Turkey

Fiscal year

Spain, United Kingdom

Calendar month

Estonia

Company’s financial year

South Africa

VAT rates

Bulgaria

Standard rate
20%

%
Reduced rate
9%

%

0% applies to services explicitly regulated by law

Czech Republic

Standard rate
21%

%
Reduced rate
12%

%

Egypt

Standard rate
15%

%
Reduced rate
5%

%

0% on exported goods and services

Estonia

Standard rate
22%

%
Reduced rate
5% or 9%

%

0% on the export of goods and services

Greece

Standard rate
24%

%
Reduced rate
6% or 13%

%

Hungary

Standard rate
27%

%
Reduced rate
5% or 18%

%

0% rate on daily periodics

Morocco

Standard rate
7 – 14%*

%

*7% for pharmaceutical products, necessities (milk, sugar), school supplies, rental of electric meters, transactions related to the sharing of drinking water, 10% for banking services, hotel services, sale of food or drinks for on-site consumption, 11% for rental of electricity meters, 14% for passenger and freight transport operations

Poland

Standard rate
23%

%
Reduced rate
5% or 8%

%

0% rate on exemptions

Portugal

Standard rate
23%

%
Reduced rate
6% or 13%

%

Romania

Standard rate
19%

%
Reduced rate
5% or 9%

%

Slovakia

Standard rate
20%

%
Reduced rate
5% or 10%

%

0% on the export of goods and services

South Africa

Standard rate
27%

%

Spain

Standard rate
21%

%
Reduced rate
4% or 10%

%

Turkey

Standard rate
20%

%
Reduced rate
1% or 10%

%

United Kingdom

Standard rate
20%

%
Reduced rate
10%

%

0% applies to zero-rate goods and services


Labour law and employment

Your international expansion to new markets means also additional agenda around employment. For this, a good understanding of labour law is necessary. Take a look at our overview of PIT rates and contributions below.

PIT rates

Bulgaria

Standard rate
10%

%
Reduced rate
1% *

%

* On income acquired in a seafarer capacity

Czech Republic

Standard rate
23%

%
Reduced rate
15%

%

15% on annual income up to CZK 1,582,812 23% on annual income above CZK 1,582,812

Egypt

Standard rate
10 – 27.5%

%

0% on income between EGP 0 and EGP 40,000, 10% on income between EGP 40,001 and EGP 55,000, 15% on income between EGP 55,001 and EGP 70,000, 20% on income between EGP 70,001 and EGP 200,000, 22.5% on income between EGP 200,001 and EGP 400,000, 25% on income between EGP 400,001 and EGP 1,200,000, 27.5% on income above EGP 1,200,000

 

Estonia

Standard rate
20%

%

Greece

Standard rate
9-44%

%

Based on income

Hungary

Standard rate
15%

%

Morocco

Standard rate
10-38%

%

0% for annual income below MAD 30,000; 10% for annual income between MAD 30,001 and MAD 50,000; 20% for annual income between MAD 50,001 and MAD 60,000; 30% for annual income between MAD 60,001 and MAD 80,000; 34% for annual income between MAD 80,001 and MAD 100,000; 38% for annual income between MAD 100,001 and MAD 180,000

Poland

Standard rate
12-32%

%

Based on income

Portugal

Standard rate
14.5 – 48%

%

Based on the tax base

Romania

Standard rate
10%

%

Slovakia

Standard rate
25%

%
Reduced rate
19%

%

19% on annual taxable income below EUR 47,537.98, 25% on annual taxable income exceeding EUR 47,537.98

South Africa

Standard rate
18 – 45%

%

Spain

Standard rate
19 – 47%

%

19% for income up to EUR 12,450, 24% for income between EUR 12,450 and EUR 20,200, 30% for income between EUR 20,200 and EUR 35,200, 37% for income between EUR 35,200 and EUR 60,000, 45% for income between EUR 60,000 and EUR 300,000, 47% for income above EUR 300,000

Turkey

Standard rate
15-40%

%

Based on the tax base

United Kingdom

Standard rate
20-45%

%

0% on annual income below GPB 12,570; 20% on annual income between GPB 12,571 – GBP 50,270; 40% on annual income between GBP 50,271 – GBP 150,000; 45% on annual income above GBP 150,000

Social security contributions

Overview of the rate paid by employer or employee

Bulgaria

Employer
14.12%

%
Employee
10.58%

%

Czech Republic

Employer
24.8%

%
Employee
7.1%

%

Egypt

Employer
18.75%

%
Employee
11%

%

Estonia

Employer *
33%*

%
Employee
1.6%

%

* In addition, 0.8% unemployment insurance contribution is paid by the employer

Greece

Employer
22.29%

%
Employee
13.87%

%

Hungary

Employer
13%

%
Employee
18.5%

%

Morocco

Employer
20.68% – 23.68%*

%
Employee
6.93%

%

*Depending on the sector for work accidents

Poland

Employer 
19.48 – 22.14%*

%
Employee
13.71%

%

*The accident insurance varies based on the business sector

Portugal

Employer
23.75%

%
Employee
11%

%

Romania

Employee
25%

%

In addition, 2.25% labour insurance contribution paid by the employer

Slovakia

Employer
25.2%

%
Employee
9.4%

%

South Africa

Employer
1%

%
Employee
1%

%

Contributions are made to the Unemployment Insurance Fund (UIF)

Spain

Employer
30.5%*

%
Employee
6,45%

%

* In addition, a variable rate for occupational accidents, for instance 1.50% office work

Turkey

Employer
22.5%

%
Employee
15%

%

United Kingdom

Employer 
13.08%

%

0% on income up to GBP 9,100 per tax year

Health insurance contributions

Overview of the rate paid by employer or employee

Bulgaria

Employer
4.8%

%
Employee
3.2%

%

Czech Republic

Employer
9%

%
Employee
4.5%

%

Egypt

Included in the social security contributions

Estonia

Included in the social security contributions

Greece

Included in the social security contributions

Hungary

Included in the social security contributions

Morocco

Included in the social security contributions

Poland

Employee
9%

%

Portugal

Included in the social security contributions

Romania

Employee
10%

%

Slovakia

Employer
11%

%
Employee
4%

%

South Africa

There is no mandatory health insurance; however, many employers offer medical aid as a benefit

Spain

Employer
23.6%

%
Employee
4.7%

%

Turkey

Included in the social security contributions

United Kingdom

Health insurance paid by an employer in the UK is not covered by national insurance, unless covered by private healthcare, which is on an individual basis. The rate of the health insurance contributions paid by the employee in the UK is the same as for the employer.

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