5 EU Residence Permits for Serious Entrepreneurs

Over the years, we’ve had plenty of established entrepreneurs looking to expand their businesses or develop their passport Plan B by getting an EU residence permit. 

Tax reduction remains a major reason for moving to another country. 

Yet, some entrepreneurs prefer to pay some taxes in order to have access to better talent and a higher quality of life, such as that offered in EU countries. 

There’s nothing wrong with either approach. 

By reducing your taxes, you have extra income to invest in various ventures. On the other hand, if you’re looking to engage with top talent, have free movement across various countries, and want to benefit from a legal and social system that supports entrepreneurship at the cost of having to pay some taxes, then that’s a great deal, too. 

It depends on what you’re looking for and what offer seems more appealing. 

And that’s exactly what we’re here for. 

At Nomad Capitalist, we’re here to ensure that you get the best deal possible. Whether you’re eying one EU country in particular or are looking for ways to get EU citizenship in the future, we’re here to guide you through the process. 

Why Start a Business in The EU?

What makes Nomad Capitalist different from other companies in the industry is that we’ve got personal experience with different investment opportunities all over the world. 

Through our lived experience, our team understands what it takes to add businesses in different countries, get the kind of second residence permits that lead to second citizenship, and more. 

Now, we understand that every country has different regulations for starting businesses. Some countries just want foreigners to set up any kind of business to increase employment opportunities for locals. 

However, some countries aren’t that foreigner friendly. Or, to be more exact, they are more particular about the kind of businesses that come in. For example, if you own a chain of restaurants, you won’t be able to start a business in some developed countries in Western Europe.

If you were to go to the UAE or the Caymans with any sort of business, you could easily do this. However, most countries in the EU aren’t that easy to get into.

In fact, there are some parts of the European Union, and this is especially true for English-speaking countries, where even a recognised company wouldn’t be able to establish itself due to the restrictive nature of the visa application process of the host country.

So, we’re here to help you recognise the countries where you can start a business and obtain an EU residence permit.

5 Best EU Residence Permits Programs for Serious Entrepreneurs

Establishing a business in an EU country is one of the best ways to get EU residence. If you play your cards right and are willing to put in five years or more, depending on your chosen country, you can even become an EU national.

With this in mind, let’s look at some of the best EU residence permit programs out there for more established entrepreneurs looking to expand their horizons.

United Kingdom

At the top of our list is the United Kingdom, and while not part of the EU anymore, many US entrepreneurs prefer getting a residence permit in the UK due to the similarities in lifestyle and proximity to Europe. This is especially true from a second passport perspective if you want UK citizenship.

In the past, the UK had something called the Tier One visa, which had three routes for investors, innovators, and start-ups. 

Now, the UK has tightened its rules and created the Innovator Visa. To be eligible, you must establish an innovative business in the UK and invest at least £50,000.What we’ve learned from people we work with and who live there is that the UK is essentially looking for the next Facebook or the next BioNTech. They want a business they can point to and say, “Aren’t we glad they’re here?”

Tax Implications for Resident Entrepreneurs in the UK

Another aspect of starting and operating a business in the UK involves the potential taxes that you’ll incur. 

As you might know, the UK isn’t famous for its favourable tax system. In fact, it has a progressive tax system that ranges from 20 to 45%, which applies to all levels of personal income from your business. 

If you decide to incorporate your business as a limited company, you’ll also encounter corporation tax, a flat 25% rate applied to your company’s profits. 

And if you sell assets like shares or property, you’ll need to be aware of the capital gains tax, which is levied on the profit from those sales. 

But it’s not all doom and gloom. The UK has a few tax incentives to help lighten the tax load you could incur. 

These include R&D tax relief, which can significantly reduce your tax bill if your business is involved in innovation, and investment schemes like EIS and SEIS, which extend tax breaks to investors in early-stage companies.

Ireland

Following the UK’s lead, we have Ireland with a similar approach. However, in Ireland, you won’t need to go through a local organisation or get a vote of approval.

Ireland has some great tax incentives for companies. Ireland looks for very innovative businesses with high profitability and, most importantly, a lot of growth. 

They don’t care about how much profit you’re making because they don’t plan to tax you a lot for it. But they do want a business that will definitely stand out and do great.

The best way to secure a residence permit for entrepreneurs in Ireland is to go through the Ireland Immigrant Investor Program (IIP). The IIP gives you the opportunity to invest between €500,000 – €2 million into an enterprise. 

There is also the Start-up Entrepreneur Programme (STEP), designed specifically for high-potential start-ups, capable of creating ten jobs in Ireland and achieving €1 million in sales. 

This could very well be your own business, but you’re going to have to ensure that your business plan is great.

You need to show them that you can bring in high-paying jobs, that your idea is unique, that it’s something you’ve put thought into, and that it has long-term growth potential. Granted, the easier route would be to simply invest in another enterprise.

However, these options may be lacking. It would be better just to start your own business or utilise the opportunity to donate to a charitable organisation to get your EU residence permit.

Tax Implications for Resident Entrepreneurs in Ireland

​​Before you pack your bags and set up your office in Dublin or Cork, let’s take a look at the tax landscape you’ll be working with.

Ireland’s low corporate tax rate of 12.5% is among the lowest in the entire EU. However, as an entrepreneur, your personal income will be subject to income tax, with rates of 20% to 40%.Aside from that, the country’s government has put a few tax incentives and reliefs in place – some of which could appeal to business owners. Chief among these is the Start-up Relief for Entrepreneurs (SURE) program that exempts you from income tax on capital gains if you reinvest them in a new qualifying business.

Just like the UK, there are also attractive incentives for research and development activities, and if your business is involved in the arts, you might be eligible for tax relief under the Artists’ Exemption scheme.

France

Next up on our list,France has a ‘talent passport’ which is generally more flexible than the UK and Ireland. As we move towards mainland Europe, you will find that there are plenty of more straightforward options available.

The most renowned program is obviously the Golden Visa options offered to investors and entrepreneurs. Many EU countries like Spain are part of the Golden Visa program. As is the case with Spain, you could use such an EU residence program as an eventual pathway towards a Spanish passport. 

This will, obviously, take at least five years, but it’s something worth looking into if you plan on staying in Europe for long.

However, it is worth noting that France is not part of the Golden Visa program. Granted, the French government could introduce one tomorrow, but it’s unlikely because we haven’t seen much interest in moving to France.

After all, you don’t really hear someone say, “I want to start a business in France.” It’s just not something that happens often. But they have something for you if you’re interested.

In the meantime, entrepreneurs interested in setting up a business in France can apply for a French residence permit.

What Do You Need to Obtain a Residence Permit in France?

Generally, France isn’t as concerned with the innovation aspect of business as the UK and Ireland. They want you to contribute €300,000 and basically prove that your business will bring in jobs.

France is most concerned about creating jobs. They don’t have the best taxes, but since it is an EU member state, there’s a lot you can do if you obtain a residence permit there and, by extension, in the EU.

Tax Implications for Resident Entrepreneurs in France

There’s a reason people aren’t flocking to France to start businesses. It’s connected to the reason why so many French people have jumped ship and moved over to Belgium: super-high taxes.

Just like the UK, France’s income tax is progressive, with rates ranging from 0 to 45%. However, as an employer, you’ll also encounter extremely high social security contributions, which range from 37 to 47% of your gross salary.For businesses, the standard corporate tax rate is 25%, although there are reduced rates for smaller companies. Specifically, companies with a turnover of less than €10 million may qualify for a reduced rate of 15% on the first €38,120 of profit.

Belgium

Another great EU residence program to consider is Belgium’s.

Through Belgium’s very interesting residence permit program, there’s no hard limit to how little or how much your business has to make. Belgium is more concerned about businesses that will actually work in Belgium. 

Most people assume that because the European Parliament is in Belgium, the country is extremely globalised, but that couldn’t be further from the truth.

Belgium likes to keep things local, and the presence of the European Commission does little to change that. So, if you have a business idea and you think it will benefit the Belgian economy, no matter how big or small it is, you can essentially get a residence permit there. 

This means that there are plenty of opportunities for everyone. Some people we work with are third-country nationals, which makes getting an American or even UK entrepreneur visa difficult. 

But if you’ve got the capital and are interested in starting a business in an EU country, Belgium could work for you. In fact, you can get a permanent residence permit very easily, leading to eventual EU citizenship.

The Belgian residence permit program is probably one of the easier EU residence permit programs. 

Tax Implications for Resident Entrepreneurs in Belgium

Belgium might be known for its chocolate and waffles, but its tax system is less sweet. In fact, aside from France and a few neighbouring countries, Belgium has one of the highest tax burdens in Europe. 

Personal income tax rates are steep, ranging from 25% to 50%. On top of that, as an employer, you’ll face a hefty 25% social security contribution, which can significantly eat into your earnings.

For corporations, the standard tax rate is 25%.  

While there are some tax incentives and deductions available, they might not be enough to offset the overall high tax burden.

Portugal

Lastly, we have Portugal. 

For a while, it looked like the Portugal golden visa would be scrapped. However, changes made in 2023 mean it will now remain on the table but with significant alterations. 

The reason? The landscape has changed, and Portugal is no longer scrambling for outside investment.  

The Portuguese property market has recovered over the past few years. The new investment option has undergone a massive overhaul, and applying via the real estate route is no longer possible. 

However, the following investment options are on offer: 

• Job Creation (10 jobs) 
• Venture Capital Fund Investment (€500,000+) 
• Research Funding (€500,000+) 
• Cultural Heritage Support Investing (€250,000+)
• Commercial Company Investment (€500,000+) 

You can go down the job creation route to obtain the Portuguese golden visa, where you need to hire ten Portuguese citizens.

Of course, the question is: would you want to hire people in Portugal? 

It honestly depends.

But then again, Portugal is in a great geographical location, so you could employ Portuguese citizens; it all depends on your business. You can even hire EU citizens living in Portugal, and you’ve got yourself an EU residence permit. 

Tax Implications for Resident Entrepreneurs in Portugal

Portugal’s tax landscape has undergone massive changes over the last year, leaving many foreign entrepreneurs asking if it’s still a good choice.

The original NHR program, with its generous tax benefits, bid farewell on December 31, 2023. But before you shed a tear, there’s a new regime coming to town, and it might just be an entrepreneur’s new ticket to tax-efficient living in Portugal.

The new Portugal NHR program will soon be implemented (estimates say we can expect it to be in place by the end of 2025), with a more specific focus on attracting talented professionals and businesses in fields like science, technology and innovation. 

Under the NHR 2.0 , eligible people can enjoy a flat 20% tax rate on their Portuguese-sourced income. Plus, you can wave goodbye to taxes on foreign-sourced income, such as dividends, royalties, and capital gains.

If you had your heart set on the old NHR regime, there’s still a glimmer of hope. A transitional period is in place until December 31, 2024, permitting people who met the conditions in 2023 to apply.

Benefits of a Long-Term EU Residence Permit

Each of these EU residence permit programs has something to offer, but the benefits aren’t the same for everyone.

Some offer automatically renewable residence permits as long as you have a valid passport and a functional business. Others have the option of obtaining a permanent residence permit in the long run. Ireland and even Belgium have great tax incentives.

If you stay in these countries for at least five years, you may even be granted citizenship or, at the very least, a permanent residence permit. 

So, on paper, these EU residence permits are great. All you need to do is make sure that you’ve got a legitimate business plan, and you can easily have your pick of these programs.

Other Residences and Citizenship Opportunities Available

There is no doubt that EU countries and their long-term residence programs are coveted by nearly every serious entrepreneur out there. However, if your business doesn’t qualify for EU residence programs, there are still many countries in the world that would happily give you a residence card. 

Countries like the United Arab Emirates are still entrepreneur-friendly despite now having a 9% corporate tax for some businesses. Several Southeast Asian countries, like Thailand, have opened their doors to entrepreneurs. 

The Bulgarian citizenship by investment program is available if you’re looking for close proximity to Europe. Even South Korea has entered the game with its own residence and citizenship program. Puerto Rico has plenty of tax incentives for foreign investors.

So, if you feel like your company wouldn’t be welcome in an EU country for any number of reasons, don’t think that it’s the end. In some nations around the world, you can even get an instant residence permit or citizenship for just investing in their economy. 

Who knows? Perhaps starting businesses elsewhere can lead to you eventually obtaining an EU residence permit. 

Best EU Residence Permit for Entrepreneurs: FAQs

Get the Right Residency or Citizenship for Your Needs

The opportunities are abundant. You just need to know where to find them. 

If you want to learn more about the opportunities you can avail of, contact Nomad Capitalist. We specialise in helping seven- and eight-figure entrepreneurs go where they’re treated best.

After all, there’s no point in moving to a new country if you’re not going to be treated any better than in your current one. 

If you work with us, we will help you examine all the options, from legal tax reductions to establishing offshore strategies, getting residence permits, and more.

To learn more about the opportunities you can benefit from, apply to become a client.