Cheapest EU country to start a company (fees, capital, tax)

There is no single "cheapest" EU country to start a company — it depends on whether you mean the lowest registration fee, the smallest minimum capital, the cheapest year-one running costs, or the lightest tax. This guide compares several popular EU jurisdictions on each of those axes, with official figures and the trade-offs that the headline numbers tend to hide. It sits alongside our wider guide on how to start an online business in Europe.

This is general information, not legal or tax advice — rules vary by country and change; confirm with a qualified professional before acting.

What actually costs money when you incorporate

Founders often fixate on the state registration fee, which is usually the smallest line item. The real cost of starting has four parts:

• Registration fee — paid to the business register. Often €30–€300.
• Minimum share capital — money you must put into the company. Sometimes €1, sometimes €25,000.
• Setup extras — notary, legal address, a local contact person, translation, bank onboarding.
• Ongoing costs and tax — annual filings, accounting, and corporate tax once you are profitable.

A country can look cheap on capital and expensive on notary fees, or cheap to register and heavy on tax. Judge the whole picture.

The low-capital, low-fee options

Estonia (OÜ)

Since 2023 the minimum share capital for a private limited company is €0.01 per shareholder, so effectively you can start with €1. The state fee to register an OÜ online is €265. Estonia is popular with remote founders because you can run it through e‑Residency (application fee around €100–€150), but non‑residents typically need a local contact person and legal address, which add roughly €200–€400 per year. On tax, Estonia charges 0% on retained profits and 22% only when profits are distributed as dividends (the increase to 24% was cancelled in December 2025). Sources: e‑Residency knowledge base; PwC Tax Summaries (Estonia); EY Estonia.

Lithuania (MB)

The mažoji bendrija (MB) has no minimum capital requirement and registration through the Register of Legal Entities costs around €32, making it one of the cheapest genuine EU entities to set up. The standard corporate income tax rate rose to 17% in 2026, but small companies (under €300,000 turnover and fewer than 10 staff) can qualify for 0% in the first year and 7% thereafter under conditions. Sources: Lithuanian Centre of Registers; PwC Tax Summaries (Lithuania).

Bulgaria (OOD/EOOD)

The minimum share capital for a Bulgarian limited company is 2 leva (about €1), and Bulgaria has the joint-lowest flat corporate tax at 10% in the EU. That combination makes it a perennial favourite for cost-conscious founders — though you will need local accounting and, in practice, substance if you want the tax residence to hold up. Sources: PwC Tax Summaries (Bulgaria); Tax Foundation 2026.

Ireland (LTD)

Ireland has no minimum share capital — companies usually issue a nominal amount such as €100 — and online incorporation through the CRO costs about €50. Trading companies pay 12.5% corporation tax. Ireland is more expensive to run than the Baltics (accounting, director requirements) but gives you an English-speaking, common-law base with a well-known tax rate. Sources: Companies Registration Office (CRO) fees; Revenue.ie.

The "€1 company" that isn't really €1: Germany

Germany's UG (haftungsbeschränkt) famously lets you start with €1 of capital, versus €25,000 for a full GmbH (of which at least €12,500 must be paid before registration). But the UG carries obligations that eat into the saving: German formation requires a notary, so real setup costs typically run into four figures, and the UG must retain 25% of annual profit until reserves reach €25,000, at which point it can convert to a GmbH. Germany's combined corporate tax burden is also high — around 30% once trade tax and the solidarity surcharge are included.

So the UG is cheap to start but not cheap to run. It suits founders who specifically want a German entity, not those simply chasing the lowest number. Sources: German Commercial Code (HGB/GmbHG); Tax Foundation 2026 (Germany 30.1%).

The catch with very low minimum capital

A €1 company is legal, but it can create friction:

• Bank onboarding. Banks and payment providers may hesitate to open accounts for a company with negligible capital. Many founders set capital at €100–€2,500 purely to look credible.
• Undercapitalisation risk. If the company cannot pay its bills, thin capital can raise director-liability questions in some jurisdictions.
• Substance and tax residence. Registering in a low-tax country does not move your tax home if you and your customers are elsewhere. Where a company is managed and controlled often decides where it is taxed, and EU anti-abuse rules can look through letterbox structures.

Tax is where the real money is

For most profitable businesses, the corporate tax rate matters far more over time than a one-off setup fee. Across the EU in 2026 the spread is wide — Hungary at 9% and Bulgaria at 10% at the bottom, Malta at 35% at the top, with Ireland and Cyprus in the low-teens (Cyprus raised its rate to 15% from January 2026 under its tax reform). Estonia and Latvia are unusual: both charge 0% on retained profits and tax only distributions (22% and 20% respectively), which rewards reinvestment.

If your model turns on tax efficiency rather than setup cost, read our companion piece on the lowest corporate-tax EU countries. And once you are trading across borders, our EU VAT calculator helps you work out the VAT on cross-border invoices — a cost that often outweighs any incorporation saving.

Quick comparison (state figures, 2026)

• Estonia OÜ — capital €0.01+/shareholder; register €265 online; tax 0% retained / 22% on distribution.
• Lithuania MB — capital €0; register ~€32; tax 17% (0%/7% for small firms).
• Bulgaria OOD — capital ~€1 (2 leva); tax 10% flat.
• Ireland LTD — capital none (nominal); register ~€50; tax 12.5% trading.
• Latvia SIA — capital €2,800 (micro-SIA €1); tax 0% retained / 20% on distribution.
• Germany UG — capital €1 (GmbH €25,000); notary required; tax ~30% combined.

Figures are state registration fees and statutory minimums only. They exclude notary, legal address, accounting and bank costs — which frequently decide the real price. Verify the current numbers with the national register before you file.

Choosing well — and building the rest

The cheapest entity to register is rarely the cheapest to own. Match the jurisdiction to where you live, where your customers are, and how you will be taxed — not just to a €1 headline. For most SMB founders, a clean structure in your home country plus disciplined accounting beats an offshore-looking setup that invites questions.

Once the company exists, it needs somewhere to sell. We can help you build a fast, conversion-focused website so your new company starts earning, not just existing. If you would like a second opinion on structure or setup, book a free consultation and we will talk it through.