Cheapest Countries to Form a Company in Europe (2026)

“Cheapest” means two different things when you form a company in Europe, and confusing them is how founders end up in the wrong country. There is the cost to set up — driven mainly by the statutory minimum share capital — and the cost to run, driven by corporate tax and ongoing compliance. A country can be cheap on one and expensive on the other. This guide ranks the lowest-barrier EU jurisdictions on both, using statutory facts rather than headline marketing.

A note on figures: we do not publish government registration fees or our own prices here. The numbers below are statutory minimum share capital and headline corporate tax rates — the jurisdiction facts you need to build a shortlist. For a tailored quote, just ask.

Cheapest to set up: lowest minimum share capital

Several EU countries let you incorporate with token capital — a single euro or its local equivalent — so there is almost no money locked into the company at formation:

• Bulgaria — the OOD forms with BGN 2 (about €1), and Bulgaria also has the lowest standard corporate tax in the EU. Cheap to set up and cheap to run.
• Romania — the SRL now forms with RON 1 of capital, and the micro-company regime taxes qualifying small companies lightly on turnover.
• Czech Republic — the s.r.o. forms with CZK 1, a genuinely symbolic figure.
• Ireland and Cyprus — both have no statutory minimum; a €1 share is enough. Ireland adds a 12.5% trading rate, Cyprus a 15% rate with an IP Box near 3%.

By contrast, Germany‘s GmbH needs €25,000 (the UG variant starts at €1 but builds reserves), Austria‘s GmbH €35,000, and Slovenia €7,500 — real money to commit up front.

Cheapest to run: lowest corporate tax in Europe

Setup cost is a one-off; tax is forever. On the running-cost side, the lowest-tax EU jurisdictions are:

• Hungary — a 9% corporate tax rate, the lowest headline rate in the European Union.
• Bulgaria — a flat 10%, the lowest standard rate.
• Estonia — effectively 0% on profits you keep in the company; tax applies only when you distribute. For a business reinvesting everything into growth, this is the lowest effective burden in the EU.
• Poland — a 9% small-taxpayer rate on most SME income, against a 19% standard rate.
• Latvia — like Estonia, defers tax until distribution (20% on distributed profit), so retained earnings are untaxed.
• Ireland — 12.5% on trading income, the best-known low rate in Western Europe.

The lowest-cost EU jurisdictions, side by side

Cheap is not the same as right

The cheapest country to incorporate in is rarely the cheapest place to actually operate. Bulgaria and Romania win on raw numbers, but if your customers, bank, or team sit elsewhere, the savings evaporate in friction. Estonia looks unbeatable for a reinvesting startup, yet the moment you pay yourself dividends the picture changes. And a token-capital company still needs a registered office, accounting, and — if you want it tax-resident — genuine local substance. Pick the country that is cheap for your specific business, not the one with the smallest number in a comparison table.

For the full method, see our guide to company formation in Europe.

Frequently asked questions

What is the cheapest country to start a company in Europe?

Measured on both setup and running cost together, Bulgaria is usually the cheapest — its OOD forms with about €1 of capital and pays a flat 10% corporate tax, the lowest standard rate in the EU. Romania, the Czech Republic, Ireland, and Cyprus are also very low to establish. For a business that reinvests profit, Estonia is effectively cheaper still, because retained earnings are not taxed at all.

Which European country has the lowest corporate tax?

Hungary has the lowest headline corporate tax rate in the EU at 9%, followed by Bulgaria at 10%. Estonia is 0% on profits kept in the company. Ireland’s 12.5% is the best-known low trading rate in Western Europe, and Malta’s refund system can bring the effective rate on trading profits to roughly 5%.

Can I form a cheap EU company as a non-resident?

Yes. None of these countries require residency or citizenship to own or direct a company. You provide a passport and proof of address, and the company needs a registered office in the country of incorporation, which we provide. The Baltics, Bulgaria, Ireland, and Cyprus are among the smoothest for non-resident onboarding.

Is the cheapest country always the best choice?

No. Setup cost is a one-off, but the wrong jurisdiction costs you every year in tax friction, banking refusals, and admin. The right country balances low barriers against where your customers, bank, and substance actually are. Cheap-to-form and cheap-to-run are different questions, and the best fit usually optimises for the second.

Related guides

• Company formation in Europe: how to choose the right EU country
• Estonia vs Lithuania vs Latvia: which Baltic country?
• EU company formation comparison: all 27 member states