Discover Europe's Best Low-Tax Countries for Digital Nomads
From 0% income tax to special regimes for foreign income, these European nations offer powerful benefits that can drastically reduce your tax burden. Let's dive into the specifics of each location.
1. Bulgaria: The EU's Flat Tax Leader
Bulgaria stands out for its straightforward and incredibly low tax system. It's a prime destination for entrepreneurs looking for simplicity and significant savings.
Flat Tax Simplicity: A mere 10% flat tax rate applies to both personal and corporate income—the lowest in the entire European Union.
Dividend Advantage: When taking profits from your Bulgarian company, dividends are subject to an additional 5% withholding tax, bringing the total effective tax burden to a highly competitive 14.5%.
Cost-Effective Operations: Lower operational and compliance costs compared to Western Europe make it an efficient place to run a business.
2. Greece: 50% Tax Cut with a View
Greece combines its stunning Mediterranean landscapes with a powerful tax incentive designed specifically to attract remote talent and digital nomads.
Half-Price Taxes: Under Law 4825/2021, eligible digital nomads receive a 50% reduction in their income tax and social security obligations for up to seven years.
Real-World Savings: For an individual earning $40,000, this incentive could cut their maximum tax rate from 44% down to just 22%, putting thousands back in their pocket.
3. Cyprus: A Hub for International Companies
Cyprus is an established international business hub, offering a sophisticated tax environment ideal for entrepreneurs structuring their operations for maximum efficiency.
Low Corporate Tax: A competitive corporate income tax (CIT) of just 12.5%, with potential exemptions for certain foreign-sourced income.
Zero Dividend Tax: Pay 0% tax on dividend income from both local and foreign sources.
Strategic Exemptions: Profits from trading securities, foreign exchange gains (under certain conditions), and dividends from foreign companies can be completely exempt from CIT.
4. Romania: Tax-Free for the True Nomad
Romania offers a perfect setup for the perpetual traveler who doesn't want to establish long-term tax residency. Recent legislation makes it a temporary tax-free haven.
Complete Tax Exemption: Digital nomads working for foreign companies are exempt from income tax and social security contributions on their salary.
The 183-Day Rule: This benefit applies as long as you do not stay in Romania for more than 183 days within any 12-month period, fitting the classic flag theory strategy perfectly.
Thriving Community: Benefit from a low cost of living, fast internet, and a vibrant digital nomad scene in cities like Bucharest and Cluj-Napoca.
5. Croatia: 0% Income Tax on the Adriatic Coast
Croatia was one of the first European countries to launch a dedicated digital nomad visa, and its primary benefit is impossible to ignore: a zero-tax policy.
Zero Income Tax: Approved digital nomads pay 0% income tax on foreign-earned income for their first year of residency.
Simple Eligibility: Open to non-EU citizens who work for a foreign company or run their own. You'll need to prove a minimum monthly income of around €2,200 and have health insurance.
Easy Process: The visa is typically approved within 20 days, and you can reapply after a six-month break.
6. Portugal: The NHR Program & Tax-Free Foreign Income
Portugal has long been a favorite for expats and nomads, thanks to its famous Non-Habitual Resident (NHR) program and high quality of life.
Non-Habitual Resident (NHR) Status: This powerful regime allows new residents to receive most foreign-sourced income—including dividends, interest, and royalties—completely tax-free for 10 years.
Tax-Free Crypto: Portugal currently does not tax capital gains from cryptocurrency for individuals.
Accessible Requirements: The D7 Visa and other pathways to residency have relatively low income and minimum stay requirements.
7. Georgia: The 1% Tax Regime for Entrepreneurs
Nestled between Europe and Asia, Georgia offers one of the most astonishingly low tax rates in the world for solo entrepreneurs.
1% Tax on Revenue: Through the "Individual Entrepreneur" status, you can pay just 1% tax on your gross revenue (up to ~$155,000 annually).
"Remotely From Georgia" Program: This initiative simplifies the process for remote workers to gain residency by showing a monthly income of $2,000 or $24,000 in savings.
Incredibly Low Cost of Living: Enjoy a high quality of life without breaking the bank in a country known for its hospitality, cuisine, and history.
8. Italy: A 70% Tax Deduction Awaits
Italy's rich culture is now matched by a powerful tax incentive designed to attract foreign talent, making "la dolce vita" more financially sweet than ever.
"Impatriates Regime": New tax residents (both self-employed and employees) receive a 70% tax deduction on their income for at least two years. This means only 30% of your income is subject to tax.
"Regime Forfetario": A simplified flat-tax regime for the self-employed earning up to €65,000, with a rate of just 5% for the first five years.
9. Malta: Remittance-Based Taxation in the Mediterranean
Malta leverages its status as a sunny island nation and EU member with a remittance-based tax system that is ideal for global citizens.
Pay Tax Only on What You Bring In: As a non-domiciled resident, you are only taxed on income earned in Malta or foreign income that is remitted to (i.e., brought into) Malta.
Tax-Free Foreign Capital: Foreign-sourced capital gains are completely tax-free, even if the funds are brought into Malta.
Corporate Efficiency: For those registering a firm, the effective corporate tax rate can be reduced to as low as 5% through a system of refunds and subsidies.
10. Serbia: A 90-Day Tax Holiday
While not in the EU, Serbia is strategically located and offers a straightforward tax break to attract remote workers for short-term stays.
Zero Tax Incentive: In 2020, Serbia introduced a zero tax rate on income earned while working in the country for an initial period of 90 days.
Gateway to the Balkans: It's an excellent base for exploring the region while enjoying a temporary tax-free status.
