Registration fees are just the tip of the iceberg. A government may advertise €50 to form a company, but once you add the registered address, accounting, bank account opening, and legal fees, the real bill often reaches €3,000 to €5,000 in Year 1. This guide compares the actual total costs across 10 European countries in 2026.
Short answer: Bulgaria and Romania cost the least to set up and run in year 1, at about €1,500 to €3,000. Latvia tops this ranking for tax, not price: profit kept in an SIA is taxed at 0%, and at 20% once you pay it out. If you plan to distribute most of your profit every year, Bulgaria's 10% corporate tax plus 5% on dividends, about 14.5% in total, costs less.
What costs to consider
To compare countries fairly, you need to add up every expense in the first year:
- Company registration: government formation fees.
- Notary and legal fees: articles of association, apostilles, legalisation.
- Registered address: mandatory in every country, typically €50 to €200/month.
- Annual accounting: bookkeeping, VAT filings, annual report.
- Bank account opening: application fees and monthly charges.
- Minimum share capital: the amount you must commit (sometimes symbolic).
- Annual compliance fees: mandatory filings, government levies.
Top 10 cheapest countries in 2026
1. Latvia: ~€2,000 to €3,500 in Year 1
Latvia combines some of the lowest formation costs in Europe with a mature business environment. It is a member of the eurozone, the EU, and the OECD. If Latvia is your pick, we handle the SIA registration from abroad, without a trip to Riga.
- Registration: €75 state fee, or €20 for an SIA with reduced capital, filed online with the Register of Enterprises.
- Minimum capital (SIA): €2,800, or less for an SIA with reduced capital (one to five shareholders, all individuals, who also sit on the board).
- Registered address: €50 to €100/month.
- Accounting: €100 to €200/month.
- Bank account: free to €50/month.
- Annual report filing: €10.
Key advantage: corporate tax is 0% on reinvested profits. Over 5 years, this tax saving can amount to tens of thousands of euros, making Latvia significantly more cost-effective than countries with slightly lower formation fees.
2. Estonia: ~€2,500 to €4,000 in Year 1
Estonia is known for its e-Residency programme, which allows fully online company formation. The digital environment is excellent, but costs run slightly higher than Latvia.
- Registration: €265.
- Minimum capital (OÜ): €0.01 per shareholder, paid in before registration (no fixed minimum since February 2023).
- e-Residency card: €100 to €120.
- Registered address: €50 to €100/month.
- Accounting: €100 to €250/month.
Estonia applies the same corporate tax model as Latvia (0% on reinvested profits), but accounting and legal service fees are typically higher in Tallinn than in Riga.
3. Lithuania: ~€2,000 to €3,500 in Year 1
- Registration: €50 to €80.
- Minimum capital (UAB): €1,000.
- Accounting: €80 to €180/month.
Very low registration fees and a €1,000 minimum capital (€2,500 until April 2023). The standard corporate tax rate is 17% (7% for small companies), without the 0% reinvested profits advantage.
4. Bulgaria: ~€1,500 to €3,000 in Year 1
- Registration: approximately €100.
- Minimum capital (EOOD): €1.
- Accounting: €80 to €150/month.
Bulgaria has the lowest raw costs in this ranking. Corporate tax is 10%, the lowest flat rate in the EU. However, there are significant drawbacks: recurring political instability and difficulties opening a bank account as a non-resident. Reputational risk with certain business partners is also a factor.
5. Romania: ~€1,500 to €2,500 in Year 1
- Registration: €50 to €100.
- Minimum capital (SRL): approximately €45.
- Accounting: €80 to €150/month.
Among the cheapest in Europe. But Romania is not in the eurozone (the leu is its currency), bureaucracy remains heavy, and administrative delays can be long. The micro-company tax (1% of turnover, with at least one employee and revenue capped at EUR 100,000 since 2026) is attractive but subject to frequent changes.
6. Hungary: ~€2,500 to €4,000 in Year 1
- Registration: €100 to €200.
- Minimum capital (Kft): HUF 3 million, about €8,200.
- Accounting: €150 to €250/month.
Corporate tax at 9% is the lowest in the EU for standard companies. However, Hungary is not in the eurozone (forint) and the regulatory environment is less predictable than in the Baltics. Notary fees are mandatory and add €300 to €500 to the initial cost.
7. Poland: ~€2,500 to €4,500 in Year 1
- Registration: €150 to €300.
- Minimum capital (sp. z o.o.): approximately €1,200.
- Accounting: €150 to €300/month.
A large domestic market, but outside the eurozone (zloty). Corporate tax is 9% for small companies (turnover below €2M) and 19% above that. Accounting costs are higher than in the Baltics due to regulatory complexity.
8. Czech Republic: ~€3,000 to €5,000 in Year 1
- Registration: €200 to €400.
- Minimum capital (s.r.o.): 1 CZK (symbolic).
- Accounting: €200 to €350/month.
Minimum capital is essentially zero, but mandatory notary fees and accounting costs are significantly higher than in Eastern Europe. Corporate tax is 21%. The Czech Republic is not in the eurozone.
9. Portugal: ~€3,500 to €5,500 in Year 1
- Registration (Empresa na Hora): €360.
- Minimum capital (Lda): €1 per shareholder.
- Accounting: €200 to €400/month.
A eurozone member with a strong reputation. Standard corporate tax is 19%, but can reach 25-30% with additional surcharges. Accounting costs are higher than in Eastern Europe. The NHR (non-habitual resident) programme closed to new applicants on 1 January 2024.
10. Ireland: ~€3,000 to €5,000 in Year 1
- Registration: €50 to €100.
- Minimum capital (Ltd): none.
- Accounting: €250 to €500/month.
Ireland has low registration fees and no minimum capital requirement. But accounting and legal fees are among the highest in this ranking. The 12.5% corporate tax rate is attractive for trading activities, but operating costs are closer to Western European standards.
Full comparison table
| Country | Gov. Registration | Min. Capital | Accounting/mo | Year 1 Total | CIT Rate | EU | Eurozone |
|---|---|---|---|---|---|---|---|
| Latvia | €20-75 | €2,800 (less with reduced capital) | €100-200 | €2,000-3,500 | 0% reinvested / 20% distributed | Yes | Yes |
| Estonia | €265 | €0.01* | €100-250 | €2,500-4,000 | 0% reinvested / 22% distributed | Yes | Yes |
| Lithuania | €50-80 | €1,000 | €80-180 | €2,000-3,500 | 17% | Yes | Yes |
| Bulgaria | ~€100 | €1 | €80-150 | €1,500-3,000 | 10% | Yes | Yes (2026) |
| Romania | €50-100 | ~€45 | €80-150 | €1,500-2,500 | 16% (1% micro) | Yes | No |
| Hungary | €100-200 | ~€8,200 | €150-250 | €2,500-4,000 | 9% | Yes | No |
| Poland | €150-300 | ~€1,200 | €150-300 | €2,500-4,500 | 9-19% | Yes | No |
| Czech Republic | €200-400 | ~€0 | €200-350 | €3,000-5,000 | 21% | Yes | No |
| Portugal | €360 | €1 | €200-400 | €3,500-5,500 | 19% | Yes | Yes |
| Ireland | €50-100 | €0 | €250-500 | €3,000-5,000 | 12.5% | Yes | Yes |
* Since 1 February 2023, Estonian law sets no fixed minimum share capital for an OÜ: each share must be at least €0.01, and the capital is paid in before registration.
Hidden costs nobody tells you about
Online comparisons focus on registration fees. Here are the costs most guides leave out:
- Translation and apostille fees: if articles of association need to be translated or apostilled, expect €100 to €500 depending on the country.
- Travel for bank account opening: some banks require in-person attendance. A return flight plus hotel can cost €300 to €800.
- Virtual office vs physical office: some countries (or some banks) do not accept virtual offices. This can force you into a physical space at €200 to €500/month.
- Annual compliance: accountant, annual accounts filing, tax returns. This amounts to €1,200 to €3,000/year depending on the country.
- Currency conversion: in non-eurozone countries (Romania, Hungary, Poland, Czech Republic), exchange fees accumulate on every transaction with euro-denominated clients or suppliers.
Cheap vs smart: total cost of ownership over 5 years
Choosing a country based solely on formation costs is a common mistake. What matters is the total cost of ownership over 5 years, which includes taxation.
A concrete example. A company generating €100,000 in annual profits and reinvesting them:
- In Bulgaria: lower formation costs (€1,500), but 10% corporate tax = €10,000/year in tax. Over 5 years: €50,000 in CIT + €7,500 in operating costs = €57,500.
- In Latvia: higher formation costs (€2,500), but 0% corporate tax on reinvested profits = €0/year in tax. Over 5 years: €0 in CIT + €10,000 in operating costs = €10,000.
Difference over 5 years: €47,500 in favour of Latvia. The €1,000 gap in formation fees becomes insignificant. Corporate tax is the real cost driver, not registration fees.
This is why Latvia, with its 0% corporate tax on reinvested profits, comes out ahead of countries with lower formation costs as long as profit stays in the company. Once you distribute it, the gap narrows: Latvia taxes distributions at 20%, while Bulgaria's 10% plus 5% on dividends comes to about 14.5%.
Frequently asked questions
What is the cheapest EU country to register a company?
In raw formation costs, Bulgaria and Romania are the cheapest (€1,500 to €3,000). In total cost including quality of environment (eurozone, banking, infrastructure), Latvia offers the best value at €2,000 to €3,500 in Year 1.
Can I register a company in Europe without visiting?
Yes. Estonia (e-Residency), Latvia, and Lithuania allow fully online registration. Bank account opening may require a video call or in-person visit depending on the bank. A specialised firm can manage the entire process remotely.
What is the minimum capital required to start a company in Europe?
From €0 (Ireland) to about €8,200 (Hungary, HUF 3 million). Lithuania asks €1,000. Bulgaria requires €1. Latvia requires €2,800, or less for an SIA with reduced capital owned by one to five individuals. Estonia has had no fixed minimum since February 2023: €0.01 per shareholder, paid in before registration. In the Czech Republic, the minimum is 1 CZK.
How much does an accountant cost in Eastern Europe?
In Bulgaria and Romania: €80 to €150/month. In Latvia and Lithuania: €100 to €200/month. In Estonia: €100 to €250/month. These fees typically cover bookkeeping, VAT filings, and the annual report for a moderate-volume business.
Is it worth registering a company in a cheap country with high taxes?
Rarely. Formation costs are a fraction of the total 5-year cost. A country like Latvia, with 0% corporate tax on reinvested profits, can save tens of thousands of euros in tax over five years when profit is reinvested (€47,500 in the example above). That advantage far outweighs a €500 to €1,000 difference in setup fees.