7 Cheapest Countries in Europe to Start a Business as a Foreigner (No Local Partner, 2026)
Looking for the cheapest country in Europe to start a business as a foreigner, without giving up equity to a local partner? This list focuses on seven jurisdictions where foreign ownership is allowed and the practical, all-in setup cost is low: fast registration, low minimum capital, and manageable first-year compliance. We cover company formation and operating reality (including banking friction), not immigration or entrepreneur visa pathways. If residency is your goal, use this second residency guide.
Scope: “Cheapest” here means low total setup + first-year compliance cost for a simple small business, assuming you can own 100% and register remotely or with minimal in-person steps.
If you want the global version (not Europe-only), see 7 Easiest Countries to Start a Business Abroad With 100% Foreign Ownership.
Key Takeaways
- “Cheapest” here means low total Year-1 cost: formation + required filings + basic accounting + registered office, plus any minimum capital that ties up cash.
- Estonia, Ireland, and Netherlands are strong picks when you want 100% ownership, remote-friendly setup, and predictable compliance costs.
- Banking is usually the bottleneck, not registration. Even “easy” countries may require extra documentation and onboarding time.
- Not a residency guide: this page covers company formation and operating reality. For visas/residency, see this second residency guide.
Quick Strategy Summary
The Problem
Complex EU regulations and country-specific requirements intimidate foreign entrepreneurs seeking European market access.
The Solution
Seven EU countries have streamlined foreign business formation while preserving full European advantages—single market access, banking freedoms, and residency pathways.
Read On If
You want a European business presence with genuine operational advantages, not just a registration address.
This is a professional-grade optimization framework. Always consult a qualified advisor before implementation.
The 7 Cheapest Countries in Europe to Start a Business as a Foreigner (How We Ranked Them, 2026)
Europe can be expensive, but some jurisdictions are genuinely low-cost to incorporate in when you price it correctly. For this ranking, “cheapest” means the total cost to get a simple company live and compliant through Year 1: formation fees + required filings + typical bookkeeping/accounting overhead + any mandatory registered office costs, plus whether minimum capital requirements tie up cash. We also require that foreigners can own 100% without a local equity partner, and we factor in remote setup friction and banking practicality (because a cheap registration is useless if you cannot operate).
- Total Year-1 cost: formation + required filings + basic accounting
- 100% foreign ownership: no local equity partner required
- Remote setup: can you register without relocating
- Minimum capital: cash tied up (or not)
- Banking practicality: ability to open and operate an account
Not covered: entrepreneur visas, residency pathways, or citizenship routes. If that’s your goal, read this second residency guide.
The 7 Best European Countries for Foreign Business Formation
Best European Countries for Foreign Business Formation
Complete comparison of formation requirements, costs, and advantages (2026)
Click any country name for detailed analysis and implementation strategies
| Country | Min. Capital | Setup Time | Corp Tax | Banking | Key EU Advantage |
|---|---|---|---|---|---|
| EE Estonia | €2,500 | 1-3 days | 0%* | Easy | E-Residency, Digital-first |
| IE Ireland | €1 | 1-3 days | 12.5% | Easy | IP holding, US gateway |
| NL Netherlands | €1 | 1-3 days | 25.8% | Easy | EU HQ hub, Tax treaties |
| PT Portugal | €1 | 1-3 days | 21% | Moderate | NHR program, Quality of life |
| CY Cyprus | €1,000 | 3-5 days | 12.5% | Easy | EU-Asia bridge, IP regime |
| MT Malta | €1,164 | 5-7 days | 5%* | Moderate | Shipping hub, Gaming center |
| LU Luxembourg | €12,000 | 3-5 days | 17% | Easy | Financial services, Holdings |
Best European countries to start a business as a foreigner:
- Estonia – €2,500 minimum capital, 1-3 days setup, 0% tax on retained earnings
- Ireland – €1 minimum capital, 1-3 days setup, 12.5% corporate tax
- Netherlands – €1 minimum capital, 1-3 days setup, extensive tax treaties
- Portugal – €1 minimum capital, 1-3 days setup, NHR tax program
- Cyprus – €1,000 minimum capital, 3-5 days setup, 12.5% corporate tax
- Malta – €1,164 minimum capital, 5-7 days setup, effective 5% tax rate
- Luxembourg – €12,000 minimum capital, 3-5 days setup, premier financial services
When evaluating the easiest European countries to start a business, we’ve analyzed formation requirements, tax implications, banking accessibility, and ongoing compliance obligations. Here are the seven jurisdictions that offer the optimal combination for foreign entrepreneurs:
Start receiving EU client payments before your company formation is finalized
Formation in Estonia, Ireland or Netherlands takes 1–3 days. But EU corporate banking often takes weeks longer—and doesn’t always approve on the first try. Most foreign entrepreneurs face a gap between company registration and operational banking.
A Wise Business account gives you immediate multi-currency capability across Europe—receive payments in EUR, GBP, USD with local account details, manage cross-border transfers at transparent rates, and operate while your traditional EU banking gets established.
Open a Wise Business account to start trading across Europe while you complete your EU business formation and banking setup.
Estonia: Low-Friction Setup (Often Lowest Total Year-1 Cost)
Estonia is one of the lowest-friction (and often lowest total Year-1 cost) EU setups for foreigners, because company administration is digital-first and ongoing compliance is relatively straightforward for a simple services or online business. The e-Residency program lets you form and manage the company remotely, which reduces both time cost and “local presence” costs versus many European alternatives.
- Foreign Ownership: 100% foreign ownership with no local director requirements
- Minimum Capital: €2,500 (can be committed without immediate deposit)
- Formation Time: 1-3 business days entirely online
- Corporate Tax: 0% on retained earnings; 20% only on distributed profits
- Banking: Easy digital banking options through EU-licensed institutions
Estonia excels for digital entrepreneurs, SaaS companies, and e-commerce businesses seeking EU operations with minimal physical presence requirements.
Ireland: Europe’s Gateway to Global Markets
Ireland is rarely the absolute cheapest on registration fees alone, but it can be one of the lowest total Year-1 cost EU setups for foreigners who want a straightforward, credible operating company. Minimum capital is effectively negligible, formation is fast, and the compliance “shape” is predictable for a simple small business. We also score Ireland well on banking practicality and international credibility, which matters because cheap formation is pointless if you cannot operate.
- Foreign Ownership: 100% foreign ownership permitted
- Minimum Capital: €1 for private companies
- Formation Time: 1-3 business days
- Corporate Tax: 12.5% on trading income; extensive IP incentives available
- Banking: Excellent access to both European and international banking
Ireland’s sophisticated legal system and established tech ecosystem make it ideal for companies requiring institutional-grade infrastructure and US market connectivity.
Netherlands: Europe’s International Business Hub
The Netherlands offers foreign entrepreneurs strategic location advantages combined with one of Europe’s most extensive tax treaty networks and business-friendly regulatory environment.
- Foreign Ownership: 100% foreign ownership with flexible structures
- Minimum Capital: €1 for private limited companies (BV)
- Formation Time: 1-3 business days
- Corporate Tax: 25.8% standard rate with various incentives
- Banking: Easy access to sophisticated European banking services
Dutch formation works particularly well for European headquarters operations, international holding companies, and businesses requiring central European location advantages.
Portugal: European Business with Lifestyle Benefits
Portugal combines streamlined business formation with attractive tax programs for foreign entrepreneurs, including the Non-Habitual Resident regime and entrepreneur visa pathways.
- Foreign Ownership: 100% foreign ownership with no restrictions
- Minimum Capital: €1 for private limited companies
- Formation Time: 1-3 business days with online procedures
- Corporate Tax: 21% standard rate; reduced rates for new companies
- Banking: Moderate accessibility with improving digital options
Portugal excels for lifestyle entrepreneurs, consulting businesses, and companies seeking EU presence combined with attractive personal tax benefits and Mediterranean quality of life.
Cyprus: Europe’s Bridge to International Markets
Cyprus offers foreign entrepreneurs European advantages combined with strategic positioning between Europe, Asia, and the Middle East, plus sophisticated IP tax regimes.
- Foreign Ownership: 100% foreign ownership permitted
- Minimum Capital: €1,000 for private companies
- Formation Time: 3-5 business days
- Corporate Tax: 12.5% with extensive treaty network benefits
- Banking: Good access to European and international banking services
Cyprus works well for international trading companies, IP holding structures, and businesses requiring European base with global market connectivity.
Malta: Europe’s Specialized Business Hub
Despite being the EU’s smallest member state, Malta offers sophisticated business formation advantages, particularly for maritime, gaming, and financial services operations.
- Foreign Ownership: 100% foreign ownership with flexible structures
- Minimum Capital: €1,164 for private companies
- Formation Time: 5-7 business days
- Corporate Tax: 35% nominal rate with refund system achieving effective 5% rate
- Banking: Moderate accessibility with specialized sector expertise
Malta excels for shipping companies, online gaming operations, and businesses requiring specialized EU regulatory approvals.
Luxembourg: Europe’s Financial Services Powerhouse
Luxembourg combines EU advantages with world-class financial infrastructure, making it Europe’s premier jurisdiction for investment funds, holding companies, and financial services.
- Foreign Ownership: 100% foreign ownership with sophisticated structures
- Minimum Capital: €12,000 for standard private companies
- Formation Time: 3-5 business days
- Corporate Tax: 17% effective rate for most companies
- Banking: Excellent access to premium European financial services
Luxembourg works best for investment holding structures, fund vehicles, and companies requiring sophisticated financial services infrastructure.
EU-Specific Strategic Advantages
How EU Company Formation Benefits Foreign Entrepreneurs
Foreign Entrepreneur Forms EU Company
100% foreign ownership in Estonia, Ireland, Netherlands, Portugal, Cyprus, Malta, or Luxembourg
Instant Access to 500 Million Consumers
Trade freely across 27 EU countries with no customs barriers or regulatory approvals
EU Banking Passport Rights
Access banking services across all EU member states with simplified cross-border operations
Residency & Freedom of Movement
Entrepreneur visa pathways leading to EU residency and travel rights across Europe
EU company formation gives foreign entrepreneurs immediate access to 500 million consumers, EU banking passport rights, freedom of movement across 27 countries, and residency pathways through entrepreneur visas.
European business formation offers advantages unavailable in any other global region:
Single Market Operations: EU companies can trade freely across 27 countries without customs barriers, regulatory approvals, or currency exchange complications within the Eurozone.
Banking Integration: The EU banking passport allows companies formed in one member state to access banking services across the entire European Union, eliminating the traditional challenges of international banking relationships.
VAT Simplification: Companies can register for VAT in their formation country and handle EU-wide sales through a single registration, dramatically simplifying cross-border commerce.
Regulatory Harmonization: Similar business laws across EU member states reduce compliance complexity for companies operating in multiple European markets.
Residency Pathways: Most EU countries offer entrepreneur or investor visa programs that provide pathways to permanent residency and eventual citizenship for successful business owners.
Choosing Your Optimal EU Jurisdiction
The best European country for your business depends entirely on your specific operational requirements and strategic objectives:
For Digital Businesses: Estonia’s e-Residency program offers unmatched online formation and management capabilities, while Ireland provides superior infrastructure for scaling technology companies.
For European Headquarters: Netherlands offers central location and extensive treaty networks, while Luxembourg provides premium financial services infrastructure.
For Lifestyle Entrepreneurs: Portugal combines business formation with attractive personal tax benefits and Mediterranean lifestyle, while Cyprus offers similar advantages with lower costs.
For Specialized Industries: Malta excels for maritime and gaming companies, while Luxembourg dominates investment fund and holding company structures.
For UK Entrepreneurs: Post-Brexit, any EU formation restores European market access, with Ireland offering particular advantages due to common law system and English language.
Implementation: Getting Started with EU Business Formation
Successful European business formation requires strategic planning beyond simple company registration:
- Jurisdiction Selection: Match your business model and operational requirements to the optimal EU country rather than focusing solely on formation costs or tax rates.
- Professional Engagement: Engage qualified formation agents or legal advisors with specific experience in your chosen jurisdiction and business type.
- Banking Strategy: Plan your banking approach early, as EU banking relationships can take longer to establish than company formation itself.
- Substance Planning: Most EU countries now require genuine business substance, including physical presence, local operations, or demonstrable economic activity.
- Compliance Framework: Establish systems for ongoing EU compliance requirements, including annual filings, beneficial ownership disclosures, and tax obligations.
Make your EU banking strategy as intentional as your formation strategy
Choosing the right EU jurisdiction is only half of the work. Your company also needs a banking setup that can actually support cross-border operations, client payments and profit distribution without months of delay or repeated rejections.
A Wise Business account helps you bridge that gap. You can start receiving client payments, hold balances in multiple currencies and move funds between banks and countries while you build deeper, long-term banking relationships in your chosen jurisdictions.
Open a Wise Business account as your first multi-currency operating account so you can trade, invoice and move funds while your full EU banking stack is still being built.
The most successful European business formations balance formation ease with long-term operational advantages, creating sustainable structures that support genuine business growth rather than mere administrative convenience.
Conclusion
European business formation offers foreign entrepreneurs unmatched advantages in today’s global economy. These seven countries—Estonia, Ireland, Netherlands, Portugal, Cyprus, Malta, and Luxembourg—provide optimal combinations of formation ease, operational advantages, and European market access.
The key to success lies in matching your specific business requirements to the right jurisdiction rather than pursuing the fastest or cheapest formation option. With proper planning and professional guidance, European business formation creates genuine competitive advantages that justify the investment in proper structure.
Whether you’re seeking digital-first operations in Estonia, technology infrastructure in Ireland, or lifestyle benefits in Portugal, these EU jurisdictions offer foreign entrepreneurs legitimate pathways to European success.
Global Strategy Framework
This content provides framework-level insights for sophisticated investors and financial professionals. While comprehensive, it requires proper professional guidance for implementation in your specific situation. All strategies must be executed in full compliance with relevant laws and regulations.
This material is for informational purposes only and does not constitute investment, legal, or tax advice. Consult qualified professionals for guidance specific to your circumstances.