Top 5 countries for worker relocation

A lot has been written about the specifics of the relocation of companies. Depending on the business features, the best options remain Cyprus, Estonia, the USA, and Great Britain.

But a problem needs to be addressed — the relocation of employees. Company managers often have questions:

• In which countries can Ukrainian private entrepreneurs (PE) live?

• How to register with them as PE?

• How and how much taxes to pay?

• How much does it cost to rent an apartment?

We figured it out and selected the 5 most comfortable countries to relocate employees to.

Portugal

Portugal is considered one of the countries where it is easiest for foreigners to settle. It offers a tropical climate and many social opportunities for cultural integration.

To register the status of a PE, you will need a residence permit or temporary protection status, a tax number, and a social insurance number.

The preferential tax regime (NHR) is a profitable option for taxation in Portugal. It is provided for ten years. NHR was developed to attract qualified specialists and wealthy investors to the country. Those who work in Portugal (freelance or regular employment) under the NHR tax regime only pay a 20% flat rate on personal income tax.

There is a shortage of real estate in Portugal. The cost of rent has been increasing for the past five years, and in 2022 will start from 10 EUR/m2. However, it is still cheaper than renting housing in other Western European countries, where the minimum prices start from 15 EUR/m2.

Poland

Poland is one of the technological centers of the EU. It is one of the most economically developed countries in the EU, and Krakow was named the best budget city in Europe for remote workers in 2021.

The status of a PE in Poland is registered in one working day without having authorized capital and the need to choose a taxation scheme. Foreigners with a permanent or temporary residence permit or temporary protection can also register as a PE.

Poland offers moderate income tax rates for IT workers: 8.5% or 12%, depending on the type of activity.

The cost of renting real estate in Poland has increased since the beginning of the Russian full-scale invasion in Ukraine: prices start from 8 EUR/m2.

Cyprus

To open the status of a private entrepreneur in Cyprus, it is necessary to have a residence permit and a work permit or to acquire a temporary protection status, which gives access to the labor market and the right to engage in individual employment. Individuals pay an income tax on a progressive scale of 0 to 35%.

You will only need an identity document to rent a property in Cyprus. The rental market in Cyprus is quite large, and prices depend on the following:

• location and region

• lease term

• the presence of furniture and accessories

• the number of rooms and seats

• season of the year

The cost of long-term real estate rental starts from 8 EUR/m2.

The Czech Republic

The Czech Republic ranks 9 out of 28 among EU countries in terms of the cheapness of living in the Eurostat (the statistical office of the European Union, responsible for publishing high-quality Europe-wide statistics) ranking and 7 out of 27 in the World Bank Group direct investment ranking. If we add to this a favorable geographical position in the center of Europe, the Czech Republic is a good choice for relocation.

A foreigner who is not an EU citizen and wants to start a business in the Czech Republic must have a residence permit or temporary protection status.

Income tax rates are 15% and 23%, depending on the amount of income.

Housing rental prices are affordable — the cost of long-term real estate rental starts from 5 EUR/m2.

Bulgaria

Bulgaria is one of the oldest European countries, which has preserved its national identity and culture for centuries.

Regardless of citizenship, any person residing in the country can register as a PE, but he/she must have a residence permit or temporary protection status. An income tax rate of 10% is applied to the income of a PE in Bulgaria.

Although the cost of long-term rental real estate in Bulgaria reached a historic record, now it starts from only 3 EUR/m2.

The listed countries established an adequate migration policy and moderate-income tax rates. Due to this, they managed to become areas people prefer as workplaces.

When choosing a country, you should focus on your preferences for the climate, the cost of living, and the characteristics of your professional activity, which will affect the choice of the taxation system. Considering these factors will help to choose the most comfortable option for relocation.