Why set up your company abroad?
Entrepreneurial expatriation is not reserved for the ultra-wealthy. It is an accessible strategy starting from EUR 40-50K in annual revenue. Here are the 5 main motivations.
Lower tax burden
French CIT (25%) is among the highest in the EU. Estonia (0% reinvested), Bulgaria (10%), Hungary (9%) or Georgia (0% reinvested) allow you to dramatically reduce the overall burden.
Access to international markets
A company in the EU (Estonia, Cyprus, Malta) gives you the European passport. Dubai positions you for Middle East and Asian markets. Panama for Latin America.
Asset protection
Domiciling your assets in jurisdictions with strong legal security (Estonia, Cyprus, Singapore) protects your wealth from judicial and political risks in your home country.
Administrative simplicity
Creating an Estonian OU takes 1 day online. A Georgian LLC costs EUR 50 and is created in a few hours. Online accounting (Xolo, Companio) is fully digital.
Cash flow optimization
In Estonia and Georgia, CIT only applies upon distribution. You can reinvest 100% of your profits tax-free, exponentially accelerating your growth.
Lifestyle
Bali, Thailand, Morocco: live in a country with an attractive cost of living while earning in euros or dollars. An EUR 80K revenue places you in the local upper class.
Choosing the right legal structure
There is no universal structure. Your choice depends on your activity, your country of residence, your partners and your profit distribution strategy.
| Structure | Typical country | Liability | CIT | Min. capital | Best for |
|---|---|---|---|---|---|
| OU (Estonian LLC) | 🇪🇪 Estonia | Limited | 0% reinvested / 22% distributed | EUR 0.01 | Digital nomads, EU freelancers |
| Georgian LLC | 🇬🇪 Georgia | Limited | 0% reinvested / 15% distributed | No minimum | Zero cost, express setup |
| Free Zone Co. | 🇦🇪 Dubai | Limited | 0% (qualifying free zone) | Variable (1-50K AED) | International trading, consulting |
| EOOD/OOD (Bulgaria) | 🇧🇬 Bulgaria | Limited | 10% | 2 BGN (~EUR 1) | EU holding, e-commerce |
| Kft (Hungary) | 🇭🇺 Hungary | Limited | 9% | 3M HUF (~EUR 7,500) | EU holding, lowest CIT in the EU |
| SRL micro-CIT | 🇷🇴 Romania | Limited | 1-3% (under EUR 250K revenue) | 1 RON (~EUR 0.20) | High-revenue freelancers, services |
| Private Ltd | 🇨🇾 Cyprus | Limited | 12.5% | EUR 1 | IP Box, fintech, 0% dividends |
| Maltese Ltd | 🇲🇹 Malta | Limited | 35% nominal / ~5% effective | EUR 1,200 (20% paid up) | Holding, iGaming, financial services |
| Panamanian SA | 🇵🇦 Panama | Limited | 0% (foreign income) | No minimum | Offshore international trade |
| Lda (Portugal) | 🇵🇹 Portugal | Limited | 21% (17% SMEs) | EUR 1 | Lusophone market access, tech startups |
🔑 The 4 selection criteria
1. Your country of physical residence
Ideally, reside in the same country as your company, or in a country with a tax treaty with it. Avoid running an Estonian company from France.
2. Your distribution strategy
You reinvest everything: Estonia or Georgia (0% CIT reinvested). You pay yourself a salary: Hungary or Bulgaria (low CIT + low dividends).
3. Your client base
EU clients: EU company (intra-community VAT, trust). US clients: Delaware LLC or Dubai Free Zone. MENA clients: Dubai. Asian clients: Thailand or Singapore.
4. Your visa needs
Setting up a company in a country can give you access to a residence visa (Dubai, Estonia, Georgia). See the Entrepreneur visas section.
Setting up your company by country
Timelines, costs, structure types, advantages and pitfalls by destination. Verified data April 2026.
Estonia: OU
⭐ Best for nomadsThe OU is the reference structure for digital freelancers and entrepreneurs. Fully created online via e-Residency. Simplified accounting with Xolo or Companio (~EUR 50-100/month).
Dubai: Free Zone
⭐ Best 0% CITOver 40 Free Zones: IFZA (~EUR 5K/yr), SHAMS (~EUR 4K/yr), DMCC (prestige), DIFC (finance). Each offers 100% foreign ownership, 0% CIT and dividends, and a residence visa included.
Georgia: LLC
⭐ Fastest setupSame tax model as Estonia (distribution tax) but dividends taxed at only 5%. Created through the House of Justice in a single day for a few dozen euros. Affordable local accounting.
Bulgaria: EOOD
⭐ Best CIT/dividends ratio in EUFlat tax 10% + 5% on dividends = overall burden of 14.5% on distributed profits. Among the lowest in the EU. Schengen member since 2024. Sofia is a dynamic and affordable capital.
Hungary: Kft
⭐ Lowest CIT in the EU: 9%9% CIT: the lowest in the entire European Union. Budapest is a vibrant metropolis with excellent transport and a growing tech scene. Minimum capital is higher than elsewhere.
Romania: SRL micro-CIT
⭐ CIT 1-3% (under EUR 250K)The Romanian micro-CIT is calculated on revenue (not profit): 1% with at least 1 employee, 3% without. Exceptionally advantageous for high-margin services.
Cyprus: Private Ltd
⭐ IP Box & 0% dividendsThe Cyprus Non-Dom regime exempts dividends and capital income for 17 years. The IP Box reduces effective CIT to 2.5% on intellectual property income (software, patents, trademarks).
Malta: Limited
⭐ Effective CIT ~5% (6/7 refund)Malta's tax refund system reimburses 6/7 of the CIT paid to the shareholder. Effective CIT = 35% x (1 - 6/7) = 5%. Popular for gaming, fintechs and holding structures.
Estonian e-Residency: the complete guide
e-Residency is a unique program launched in 2014 by Estonia. It allows non-Estonians to create and manage a European company entirely remotely.
✅ What e-Residency gives you
- A digital smart card with electronic identity certificate
- Access to Estonian government online services
- Create an Estonian OU entirely online
- Electronic signature for legal documents and contracts
- Access to European banks and fintech (LHV, Wise, Stripe...)
- Accounting and tax filings 100% online
- EU address (Estonian IBAN or partner country)
❌ What e-Residency does NOT give you
- No Estonian tax residency: you remain a resident of your current country
- No visa or residence permit in Estonia
- No Estonian citizenship
- No tax evasion: if you remain a French tax resident, CFC rules apply
- No access to Estonian social security
- No automatic bank account (must be opened separately)
📋 How to obtain e-Residency
At e-resident.gov.ee, upload passport, photo, motivation (~10 minutes). Cost: EUR 120-150. Processing time: 3-8 weeks.
At an Estonian embassy (Paris, Brussels, Berlin...) or in Estonia. You must appear in person once only.
Via the Estonian state portal or through a specialist provider (LeapIn, Xolo, 1Office). Timeline: 1 day. Minimum capital: EUR 0.01.
Business account at Wise Business (multi-currency, Estonian IBAN), LHV Bank (traditional Estonian bank) or Revolut Business. No travel required.
Xolo (~EUR 49-99/month) or Companio (~EUR 49/month): everything online, VAT returns, annual reports, automated CIT declarations.
💰 Total annual cost of an Estonian OU
| Item | Estimated annual cost |
|---|---|
| Registered address in Estonia (mandatory) | EUR 100-200/yr |
| Accounting (Xolo or Companio) | EUR 600-1,200/yr |
| Annual state fees | ~EUR 15/yr |
| Wise Business account | Variable (0% on standard operations) |
| e-Residency renewal (every 5 years) | ~EUR 24 |
| Total | ~EUR 720-1,400/yr |
International banking for entrepreneurs
Opening a business bank account abroad is often the main friction point. Here are the solutions that actually work in 2026.
Multi-currency, essential
- Local IBANs in 10+ currencies (EUR, GBP, USD, SGD...)
- Multi-currency Mastercard debit card
- Exchange rate at the interbank rate
- Accounting integration (Xero, QuickBooks)
- 100% online opening, no travel needed
- Fees: 0 on incoming payments, ~0.5% on conversions
All-in-one, freemium plan
- Free plan with 5 SEPA transfers/month
- Multi-user management and team roles
- Single-use virtual cards (SaaS security)
- Lithuanian IBAN (standard plan) or local IBAN (premium)
- Limitations: less suited for non-EEA countries
- Fees: EUR 0-79/month depending on plan
Traditional bank for OU
- Business account for Estonian companies
- Estonian IBAN, SEPA transfer, SWIFT
- Required for certain providers (Stripe, PayPal pro)
- Remote opening possible (with e-Residency)
- Account maintenance fees: ~EUR 10-20/month
For Delaware LLC / US clients
- USD account for startups and Delaware companies
- Stripe, Brex integration, US platforms
- No monthly fees (for small companies)
- 100% online opening, accessible to non-US residents
- Ideal if you invoice US clients in USD
Entrepreneur visas by destination
Setting up a company in a country is not always enough to live there legally. Here are the entrepreneur and digital nomad visas available by destination.
| Country | Visa / Permit | Duration | Main conditions | Approx. cost |
|---|---|---|---|---|
| 🇦🇪 Dubai | Freelance Permit (IFZA, SHAMS...) or Golden Visa | 2-5 years renewable | Free Zone company setup (includes visa) or 2M AED investment (Golden Visa) | EUR 5,000-20,000 |
| 🇵🇹 Portugal | D2 Visa (entrepreneur) or D8 Visa (digital nomad) | 1 year then 2-year card renewable | D2: business plan + resources. D8: proven income ≥ 4x Portuguese minimum wage (~EUR 3,500/month) | EUR 300-800 |
| 🇹🇭 Thailand | LTR Visa (Long-Term Resident), Remote Worker category | 5 years renewable (10 years total) | Income ≥ USD 80,000/yr, contract with company outside Thailand, health insurance | USD 600 + ~USD 2,000/yr |
| 🇬🇪 Georgia | Remotely from Georgia or free stay 365 days (EU agreement) | 1 year (nomad) / free 1 year (EU nationals) | Proven income ≥ USD 2,000/month (nomad program) | Free (EU) / ~USD 120 (nomad program) |
| 🇪🇪 Estonia | Digital Nomad Visa | Up to 1 year | Work remotely for employer/clients outside Estonia. Income ≥ EUR 4,500/month | EUR 80-100 |
| 🇮🇩 Bali (Indonesia) | Second Home Visa (extended VoA) or KITAS B211A | 5 years (Second Home) / 60 days renewable | Second Home: bank deposit 2M IDR (~USD 125K). KITAS: local sponsor or company | Variable (Second Home: ~USD 1,000) |
| 🇲🇦 Morocco | Residence card (CRE) after 1 year of legal stay | 1-10 years depending on length of stay | Proven regular income, contract or local company | Low (ANAPEC procedures) |
| 🇵🇦 Panama | Friendly Nations Visa or Pensioner Visa | Permanent residence possible | Friendly Nations: employment or company in Panama. Pensioner: income ≥ USD 1,000/month | USD 1,000-3,000 |
| 🇷🇴 Romania | Free movement EU (EU nationals); residence permit for non-EU | Permanent (EU) | EU: simple registration. Non-EU: employment contract or local company | Free (EU) |
| 🇧🇬 Bulgaria | Free movement EU (EU); Long-Stay D visa (non-EU) | Permanent (EU) | EU: simple registration + proof of resources. Non-EU: D visa | Free (EU) |
Freelancing abroad: which status to choose?
Not all expats need to set up a company. Here are the different options and the revenue threshold at which a company becomes essential.
🏠 French auto-entrepreneur from abroad
Possible but only if you remain a French tax resident. In that case:
- You still contribute to URSSAF (~25% social charges)
- Progressive income tax in France on all your income
- Cap of EUR 77,700/year (services)
- Invoicing in euros, French legal protection
When it works: temporary departure (< 2 years), planned return to France, exclusively French clients.
🌍 Freelance as a local self-employed
In some countries, you can work as a local self-employed person without setting up a company:
- Georgia: Individual entrepreneur status, PIT 1% on revenue up to 500K GEL
- Bulgaria: Sole trader status, flat 15% (after 25% standard deduction)
- Romania: PFA (Authorized Individual), flat 10% + social contributions
- Cyprus: Self-employed, CIT 12.5% or progressive PIT
📊 At what revenue should you set up a company?
Economic substance & tax risks
Setting up a company abroad is not a magic wand. Anti-abuse rules exist and can nullify all your tax advantages if you do not comply.
🇫🇷 Art. 209B CGI: French CFC rule
If you are a French tax resident and control a foreign company with more than 50% ownership, French tax authorities can integrate the profits of that company into your taxable income in France.
Exception: the rule does not apply if the company is in a country with a treaty with France AND whose CIT is not lower than one-third of French CIT (~8.3%).
🏢 Permanent Establishment (PE)
If you manage your foreign company from France (meetings, contract signing, effective management...), France can consider your company has a permanent establishment in France.
Consequence: profits attributable to that PE are taxed in France (25% CIT) as if your company were French.
✅ What is "genuine economic substance"?
For your foreign company to be recognized as such (and not reclassified by French tax authorities), it must have genuine substance in its country of registration:
Ready to launch your business abroad?
Start by choosing your expatriation country, then consult the complete guide for your destination for all practical details.
Country guides: top destinations for entrepreneurs
⚖️ Disclaimer: The information presented on this page is of a general informative nature and does not constitute personalized legal, tax or accounting advice. Setting up a company abroad is subject to complex regulations (local corporate law, international tax law, anti-abuse rules). Each situation is unique. Before any arrangement, consult a tax lawyer specialized in international business law. Sources: official company registries, PwC Ease of Doing Business, EY Worldwide Corporate Tax Guide, April 2026.