Business in Central Europe

Companies are expanding their businesses around the world, but it is not so easy everywhere. Let’s try to find out in which Central European countries the tax and business climate is conducive to business development, and the level of bureaucracy is lower.

The European Union attracts entrepreneurs with uniform market rules, the number of consumers of a given service, a low level of corruption and a logical circulation of documents. When choosing a specific country, you must first research the demand, start-up cost, taxation, current labor costs, certificates, etc. First of all, you need to focus on your financial capabilities and knowledge in a specific area. To make the right choice of country in which you plan to open a business, you need to study the information on official government websites about the demand and development of your trading direction in that country. Pay attention to performance and profit margins.

Small and medium-sized business in Europe is a business that does not require large investment outlays, and this business is becoming more and more popular. Small business is also a good start for an entrepreneur from outside the EU. A simplified registration and reporting system has been developed for small businesses in many European countries. As a rule, costs are accepted for tax deduction.

Below we present a small analysis of establishing and running small and medium-sized enterprises in some Central European countries, we take into account the following criteria:

  • Taxation
  • Cost of opening a business
  • Accounting cost (minimum package)
  • Opening a bank account (opening time, possible barriers)
  • Obtaining a work permit for a foreigner from the CIS
  • Minimum wage
  • Inflation

Major Tax Rates:

Country Income tax PIT VAT Income tax on dividends
Lithuania 15 15 21 15
Estonia 20 20 20 20
Poland from 9 from 17 23 19
Latvia 20 20-31,4 21 20
Slovakia 21 25 20 7
Czech Republic 19 22 21 15



I would like to note that Poland has the lowest income tax rate – it is 9% with annual revenues not exceeding EUR 2 million.

Low VAT rate of 20% – Estonia and Slovakia.

The lowest tax on dividends in Slovakia is 7%.

Currently, in many countries there is a so-called Estonian dividend tax, i.e. if the dividends are intended for investment in the company, the tax is not levied at all.

Comparison table of the cost of services for opening a business in different countries:

Country Cost of service, Euro (*)
Lithuania 700-2000
Estonia 700-2000
Poland 700-1200
Latvia 1000-2500
Slovakia 2500
Czech Republic 2700-3000

(*) – The difference in the costs of providing the service will depend on the opening time of the company (24 hours or more) and the inclusion of additional packages – obtaining registration numbers, electronic signatures, setting up a bank account, preparing and submitting documents to regulatory authorities and reporting the number of company founders, etc.

Accounting costs (minimum package):

Country Cost of service, Euro (*)
Lithania from 100
Estonia from 50
Poland from 100
Latvia from 50
Slovakia from 100
Czech Republic from 50

(*) – The prices for maintaining a minimum package of services are, as a rule, adjusted depending on the complexity and amount of processed documentation and the individual approach to each company.

Opening a bank account:

Country Avarage price of the service (EUR) Time (in days) Is it hard to open the account Mandatory visit at the bank
Lithuania from 2000 1 No Yes
Estonia from 700 3-4 Yes Yes
Poland from 200 2-3 No Yes
Latvia from 500 2-3 No Yes
Slovakia from 2600 2 No Yes
Czech Republic from 700-900 2 Yes Yes


In some countries, the possibility of opening a bank account for CIS citizens is limited. The approaches to opening an account for non-resident legal entities vary considerably. Practice shows that each bank has a different approach and requirements. For example, some banks open accounts for a company whose directors are foreigners only after obtaining approval from the bank’s headquarters. Other banks do not open accounts based on a power of attorney. Some banks do not open accounts for legal entities from third countries at all. Basically all banks require the presence of a company representative.

For example:

Estonia – In order to open a bank account, a company must have a real office and employ staff.

Poland – It is difficult to open an account if the directors are not residents.

In order to make the process of opening an account for a company fast and successful, we recommend that you ask competent specialists in international business with this question.

Obtaining a work permit for foreigners from the CIS:

Country Time for receiving the decision Price  EUR (*)
Lithuania from 7 to 14 days from 150-200
Estonia 3-4 days from 200-350
Poland from 7 to 30 days from 80-300
Latvia 2-3 weeks from 170
Slovakia from 20 to 60 days from 300
Czech Republic from 10 to 20 days from 150


(*) – the cost depends on the type of work visas, the length of stay, the cost also includes consular fees and the average price for the provision of intermediary services (paperwork, visa center, translator, notary, etc.).

Comparative table of minimum and average wages by country for 2022:


Country Min (EUR) gross
Lithuania 730
Estonia 657
Poland 658
Latvia 500
Slovakia 598
Czech REpublic 656



Country Avarage inflation 2021 (%)
Lithuania 8,2
Estonia 6,8
Poland 6,4
Latvia 6,0
Slovakia 4,8
Czech Republic 4,4



The European market is more attractive to people from the CIS countries. In EU countries, the “business climate” encompasses factors such as the independence of the judiciary, the availability of funding, and the conditions of a competitive environment.

Therefore, answering the question whether it is possible to open a profitable business in Europe – we answer yes! But you have to be responsible when choosing the location of the company and business, choose the market where your services or goods will sell better.

If you still have questions on this topic or would like to clarify any information, please write to us –

Business in Central Europe


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