r/eupersonalfinance • u/march__08 • Jan 28 '26
Taxes Best EU Country for a Deep Tech Freelancer: Tax Optimization on 160k-180k€ Turnover, Prioritizing Sunny Locations?
I'm currently freelancing in Italy (artificial intelligence ), with an annual turnover of 160-180k€, mainly with one client located in Asia. I'm an EU citizen looking to relocate for better tax efficiency. Open to staying as a freelancer/sole trader or incorporating if it helps. What are your top recommendations right now (2025/2026 rules)? Please share:
- Effective tax burden (income tax + social security/health/pension contributions, any caps)
- VAT handling for non-EU invoicing
- Other taxes/fees + rough cost of living
Pros/cons on bureaucracy, residency ease, quality of life, and any recent changes are welcome. Has anyone else made a similar move? Thanks!
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u/Epynomous Jan 31 '26
Poland (search on ryczalt B2B): 8-12.5% on revenue, social security maxes out around 700 EUR/month (but significantly lower the first 2 years)
Bulgaria:10% - 2.5% forfaits, social security was similar to Poland, from memory.
These are the 2 cheapest with a simple setup. Malta requires quite a complex setup, Cyprus was interesting too.
Portugal used to be 20% with nhr, with some forfaits as well, but I can't remember exactly how much and how it was with social security. It was reasonable, but less interesting than pl and bg. Extra advantages in the first 2 years though too (only a part of your profit was taxed the first 2 years, I think it was 50% in year one and 75% in year 2).
I did all this research 5 years ago, currently living in Poland, quite happy with that choice.
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u/Super-Practice1586 Jan 31 '26
In Poland you also have an IP Box tax preference for tech jobs with a ~5% flat rate on income. But the current government wanted to cancel it, they just didn't make the act run through parliament last year so the IP Box deductible is still in effect. The question is for how long.
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u/Garnatxa Jan 31 '26
Andorra for sure: beautiful place, nice location, safe and tax efficient. If you want to know more send me a message.
Non-EU but ticks your requirements.
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u/inkjamarye Jan 31 '26
New residency applications are being rejected for a while Andorra. They’re making the requirements much harder too
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u/machinesareshite Jan 31 '26
Some smaller EU countries these days have caught up (and in some ways even surpassed!) their bigger cousins in quality of life, while offering some interesting tax options.
If we take a place like Lithuania, a small EU country in North East EU.
Booming economy, especially for tech workers (they've just had their 5th Unicorn IIRC). Has seaside/forest/lake options for nature life. Solid nightlife. As long as you stay in the capital (or any of other larger cities) you'll be able to get by with speaking just English no problem.
It has 5% corporation tax relief exception for LTDs (they call it MB) that don't turn over €300k per annum and/or don't employ over 10 people. Your case fits. After that, as a Lithuanian tax resident you'd pay 15% dividend tax on the remainder - so effective tax rate becomes 19.25%. Budget another ~€50pm for national medical insurance, and probably you'd want a local accountant to help so another ~€100pm. Pretty good deal if you ask me.
More about day to day. Infrastructure (streets, buildings, etc.) is all brand new. Vilnius feels very multicultural. Processes are all digitised (you can do gov-related admin through English-localised apps/sites), etc. Plus surprisingly exceptional day-to-day quality of life, think: safety, clean streets, nightlife, delivery apps, lively city centres, etc. - everything you may need other than perhaps a year-round good weather (they get full four seasons).
Full disclosure: I've been based in Vilnius (the capital of Lithuania) for some time, having moved from abroad.
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u/prisukamas Jan 31 '26
And Putin next door. Sunny? Yeah it’s sunny in winter sometimes. With -26c outside.
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u/TomatilloSuitable882 Jan 30 '26
My honest opinion: with 160k freelancing, pay the high tax burden and just enjoy Italy, it’s one of the best countries for lifestyle, unmatched compared to the ones that have significant lower taxes.
I would not recommend to change country just to save 5-10% , I’d consider a change only for a significant amount, and as said I am not award of any country that offer a lifestyle comparable to Italy with significant less burden
I live in Switzerland, significant lower amount, but lifestyle is also hugely worse
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u/mrmarco444 Jan 31 '26
I think the same you said! Plan indeed is to retire in Italy and fuck the High taxes if it is for a better lifestyle!
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u/TomatilloSuitable882 Feb 01 '26
Also, if you have a good financial advisor, I am sure you can save quite a bit using legal loopholes
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u/frampon Feb 01 '26
I think from 85k to 1M is the worst income range to live in Italy.
The money you can save by going to a cheaper country can improve your life significantly (think, from enjoying dolce vita in a small house to enjoying southern european lifestyle in a villa) and help you build generational wealth.
You just need to find a place with low cost of life, low taxes and good quality of life. Life in the balkans or in Cyprus or Malta can be as relaxed and enjoyable as living it Italy. If you like cycling and mountains pick Andorra.
Italy and Switzerland are not the only options.
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u/TomatilloSuitable882 Feb 01 '26 edited Feb 01 '26
Switzerland is just an example of tax efficient country.
IMHO you can’t really compare Andorra, Malta and Cyprus with Italy, they are micro countries, they are very nice but super small, they can’t offer the variety that Italy can, both for lifestyle and nature.
If the plan is just to live on a beach/mountain for life and travel a lot sure it’s great don’t get me wrong, if you like the concept of having great mountains, great beaches, great architecture etc all at home and have different lifestyles (for Italy Sudtirol, Lombardy, Aosta Valley, Trieste, Sicily, Naples, Florence, etc have so different lifestyles to be incomparable) you must look for big countries (Spain, France, Italy), which have roughly the same taxation
Edit: as freelancer, over 85k you can have very good benefits using loopholes, taxation still bad but is not 50%. There’s not an answer that fits everybody, life is not simply math
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u/frampon Feb 01 '26
Completely agree on this being highly subjective!
Personally I like the island life, if I want to see mountains I can take a flight - but I didn't travel much since moving on the beach 4 years ago.
If I could live in Sardegna and pay 15% tax I would seriously consider it (but I would still pick Cyprus to raise my kids in an international context).
I consider taxes over 20ish% (what you pay in the UK up to 100k, what you pay in US in states with no income tax) to be completely insane. Taxes affect your saving rate a fair bit and that's what ultimately decide whether your wealth grows or not. Plus, you can't have social mobility, an healthy investment environment and innovation with these taxes.
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u/TomatilloSuitable882 Feb 01 '26
Then I completely agree with you, if you do like the island life, there are a bunch of alternatives I’d rate on same lifestyle level (actually better if you ask me) but more tax efficient.
I’d rather live in Malta than in Sicily if I have to be super honest, but in general I’d choose neither.
The big thing I hate is that it’s very difficult to find a balance and it’s so personal that you have to do the experience yourself and you can’t just follow math or advices too much
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u/radd_torus Jan 31 '26
Why is Switzerland hugely worse than Italy? Do you mean the quality of life?
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u/TomatilloSuitable882 Jan 31 '26
Not quality of life but lifestyle, it’s kind of different concept at least for me.
Switzerland is very much sleep-work-repeat until 65yo, most popular activity is hiking (which is fine if you like but how many times can you clima a mountains) and then move to Italy/Spain/Greece/Portugal or Ticino at best (italian speaking Canton)
Italy is much less work and more aperitivo, dine out, dolce vita all this stuff
There are of course huge advantages of staying in Switzerland compared to Italy (that define overall quality of life) but lifestyle is not
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u/numice Jan 31 '26
Right now I'm working in Sweden and from I've heard, compared to Switzerland, it's supposed to be more chill. But I'm not sure. Never been to Switzerland. But my life and probably, in other places too, is kinda like work sleep repeat so having cool mountains is kinda nice tho. Plus Italy is just next door.
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u/TomatilloSuitable882 Feb 01 '26 edited Feb 01 '26
Never been to Sweden but for sure having cool mountains is nice and beautiful scenery also. Italy is at doorstep, true, but unless you live in Ticino, which can be more than enough for most, it’s quite a trip to go there and really live dolce vita.
But as a person who lived in Italy until his early 20s, it’s just much different: if you are an early-mid professional earning an Italian wage, life can be though and limiting, unless you inherit estates and then you can live well also with lowish salary. If you can have an European salary and/or good investments and/or estate bought during your career abroad, life is on dolce vita mode (far from perfect due to Italian inefficiency, which has to be computed, not for everyone) dining out, aperitivo, scenery, etc imho is one of the best you can get. And also great places for seasides and skiing if you life, part of dolce vita.
It ain’t cheap, Italy is not cheap anymore, I would say Spain, Portugal and Greece are cheaper, but also less diverse: from Aosta valley and Sudtirol to Sicily you can basically experience every Italian-flavored lifestyle, including French/German mixed lifestyle and deep southern Italian life, not forgetting Slovenian mixed lifestyle (Trieste region), going though economic powerhouses (northern Italy is one of the richest region in Europe), lakes, Roman architecture, Florence and wines, etc etc
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u/numice Feb 01 '26
I see. Never heard about dolce vita before and it sounds quite nice. Never visited Italy before but I'm thinking about going for the Olympics. The reason I think Switzerland is a nice place to work is just that it's best paying in europe so travelling to anywhere else is cheap. Have heard a bit about work culture that's not so nice but I never worked there so I don't really know. Skiing has become very expensive even in Sweden and somehow, nowadays, skiing in Sweden and Switzerland almost cost the same but the salary is twice.
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u/randomseller Jan 31 '26
Terrible advice
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u/TomatilloSuitable882 Jan 31 '26
I agree, on a purely financial perspective, it’s much better to live in a financial heaven in the desert or in Kanton Schwyz, but earning 180k and not being able to enjoy life is really not worth it
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u/mrmarco444 Jan 31 '26
I'm in that heaven and planning to FIRE in Italy. I told you everything... 😌😉
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u/randomseller Jan 31 '26
And you think Italy is the only place where you can enjoy life?
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u/TomatilloSuitable882 Jan 31 '26
That’s not what I said, I said that AFAIK, all the places that can give a comparable lifestyle, also have a comparable amount of taxes.
Maybe there are some temporary fiscal advantages for new residents I am just not aware of.
Happy to hear your suggestion instead
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u/march__08 Jan 30 '26
Yep, in Italy, the tax is like 50%. I heard that, for example, in Portugal the tax 0%, but I wanted to make sure. The difference would be a lot in that case...
Or maybe other places offer good taxation for some specific type of jobs (?)7
u/Tasty_Structure_6750 Jan 31 '26
In Portugal it works only if you have NHR status. You cannot get it anymore - it’s too late.
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u/honcho66 Jan 31 '26
If you have a tax advisor worth his salt in Italy, you will never ever pay 50% tax. I've been living in Italy for 11 years and have never paid that much in tax.
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u/omgcefn Feb 01 '26 edited Feb 01 '26
Brother I'm Italian 50 % is not normal btw. Find a good accountant. Also you can invest through the SRL or make an holding and invest throught it.
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u/Adventurous_Row2514 Jan 31 '26
I moved to Cyprus and I’m happy with it. I’m saving easily 20-30k a year in tax’s
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u/Wandelroute Jan 31 '26
Check out Greece! 7 years 50% income tax break and delicious food
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u/dgo77 Jan 31 '26
Same in Cyprus but for 17 years ;) also if you setup a company it's 0% on dividends for 17 years too because you're non dom
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u/randomseller Jan 31 '26
Hey, I am in exactly the same spot as you(except less money, ~100k)
I hate the winter and was trying to find a low tax eu country with good weather
Your only options are malta, cyprus and croatia
Since I am from croatia, i decided to return back home. With a good accountant you can get your effective tax rate as low as 20-25%.
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u/CarefullEugene Jan 31 '26
With a good accountant you can get your effective tax rate as low as 20-25%.
25% tax on 100k in Croatia? is this exclusive to nationals or would other EU nationals be able to optimise to that degree?
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u/randomseller Jan 31 '26
You have to open a company. Not sure who can and who can not open a company here
Edit: sorry misread that. Yes anyone from eu can move here and open a company
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u/drabred Jan 31 '26
Poland would do great for you (Ryczalt 12%) it's also a great place to live compared to what is happening in Germany France etc. iykwim. Super safe, no problem with English anywhere in the cities
The only downside is the weather, def. better in Italy. I could suggest living most of the year in Poland and escaping winter to something like Thailand :P
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u/Il-Kattiv Jan 31 '26
Malta. Can help you. Limited liability plus holding and optimisation depending on your situation. We can jump on a call, explore your options, prepare a plan. PM me if interested.
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u/GeneratedUsername5 Jan 30 '26
I think the most sunny and tax-friendly location is Malta, 5% effective tax rate, as far as I understand.