Quick answer — low-tax business setup outside the EU. Location-independent founders looking for low tax near Europe mostly compare Georgia (1% tax on turnover for eligible individual entrepreneurs), Andorra (10% corporate tax, with residency often obtained through your own company), Serbia (flat-rate entrepreneurs or a d.o.o. at 15%), Montenegro (corporate tax bands from 9%) and Switzerland (stable, with rates that vary by canton). Each comes with eligibility or residency conditions.
Not every founder wants an EU company. Some want lower tax than the EU allows, a simpler residency route, or a base that is close to Europe without EU-level compliance. The countries just outside the EU — in the Alps, the Pyrenees, the Balkans and the Caucasus — fill that gap.
They differ enormously. Switzerland is the most stable and credible but also the most expensive. Andorra offers a 10% cap in a European microstate but requires real residence. Serbia and Montenegro offer low costs and simple setups with growing tech scenes. Georgia offers a 1% turnover tax for eligible individual entrepreneurs, but many service activities don't qualify. None of them gives you an EU VAT number, which matters if your clients are EU businesses.
It is not for locals of these countries, settled expats in local employment, or founders who need an EU company and VAT number for their clients.
Not sure this branch fits you? Compare all situations in our guide to multi-country business structuring.
For these countries, the tax advantage only works if you actually live there and break residency in your previous country. Andorra and Switzerland expect real presence; Serbia, Montenegro and Georgia are easier to enter but still require you to become tax resident to benefit personally.
Companies in these countries cannot obtain an EU VAT number. EU business clients will treat your services as imports from outside the EU, which usually works for B2B services, but can complicate sales to EU consumers and some procurement processes.
If you stay resident in an EU country, its CFC rules can apply to a low-taxed company in these countries. If you leave, check exit taxes on any shares you hold.
Swiss and Andorran banks are well established but demanding. Serbian, Montenegrin and Georgian banks onboard foreigners more easily, but some international payment flows can be slower; many founders combine a local account with an international payment institution.
Ranges are indicative for a small, single-founder business.
The lowest rate is not always the right choice: eligibility limits, EU VAT needs and how easily you can live there matter as much.
The Non-EU Europe Comparison Guide sets out tax, residency and banking for all five countries side by side — get it when you check your fit with Heavnn.
Georgia's Small Business Status taxes eligible individual entrepreneurs at 1% of turnover, which is the lowest headline rate. Andorra caps corporate and personal tax at 10%. Both come with eligibility and residency conditions.
No. Companies in Switzerland, Andorra, Serbia, Montenegro and Georgia cannot obtain an EU VAT number. B2B services to EU clients are usually handled through reverse charge by the client.
Andorra suits founders who want to live there: residency usually requires real presence, and active residency is often obtained through your own company. It is not a remote-only option.
It is the Small Business Status for individual entrepreneurs, which taxes turnover at 1% up to an annual cap. Some activities, including many consulting services, are excluded.
Often not on tax alone, because of higher costs and residence requirements. Switzerland makes sense for founders who value stability, banking and quality of life and plan to live there.
Outside the EU, the right country depends on what you do and where you can live. Heavnn checks both before you move.
Find the right setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and costs are indicative as of October 2026.
