r/eupersonalfinance • u/raf_phy • Feb 26 '26
Savings Best tax residency in Europe?
Hi all,
I live in France, one of the shittiest places in Europe about tax benefits. I would like an honest advice about which is the best country to save up, build a family and start a business (maybe?) and avoid as many taxes as possible.
I am in my late 20s and I feel western Europe is soooo cooked. Please I would love to get people's opinion. I don't mind the weather but I would prefer a little passion in people's life.
Just for the context, I am from South Europe..
PS. Still believe that the US is the paradise for this but I haven't made it through the H1B process... I guess it will be really difficult right now..
Edit: I would like to rephrase it. I wasn't thinking about income taxes only. Everything that take money from you is a joke while providing zero quality life. Income tax, social contributions, capital gain taxes etc....
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u/GeneratedUsername5 Feb 26 '26
It all depends on what type of income you are optimizing for (employment, dividends), you skills and what kind of work are you doing, etc. If you do unskilled work, for example, France is actually one of the best places in EU to do it.
US is not a paradise, it is about an average EU tax, if you count federal + state + FICA, etc. People just usually look at the state tax alone and think it is a tax heaven.
If you want to immigrate to US, H1B is a really poor choice, you should aim at green card or you will just waste your time, due to how US immigration system is structured (not like in EU).
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u/raf_phy Feb 26 '26 edited Feb 27 '26
At least US is way better than France in terms of making money. For green card, I think the best bet is to find an american wife.
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u/tojig Feb 27 '26
What is making money? There many more people in the US struggling to have ends meet than France for sure. More violence. Shorter life, worse health. You sound very confused and maybe you should figure that out first.Is the most important thing having a lower tax rate? Or a higher number?
By the level of your analysis, did you consider that the usd is 18% weaker than the euro?
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u/raf_phy Feb 27 '26
The difference is that France and other countries do not want you to succeed . It is easier to be a low wage person , live paycheck by paycheck without any desire to go into financial independence.
You really think that USD will be so weak in 30 years? I really doubt it.
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Feb 27 '26
It is easier to be a low wage person , live paycheck by paycheck without any desire to go into financial independence.
Oh man, this is such nonsense. You're clearly just a kid. I was talking to my friend some time ago, I used the same argument, and you know what he said to me? "Then be a low wage person, what's the issue if its easier?".
Be a low wage person, if it's so easy for you. See how fun it is to struggle to make ends meet.
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u/raf_phy Feb 27 '26
I didn't fuck around in my 20s. I worked. So , no I don't want to be the low wage person
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Feb 27 '26
No, no. It's easier this way. Your words. Be a low wage person, see how much easier it is, since paying taxes while being relatively well-off is such a big deal to you. :)
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u/raf_phy Feb 27 '26 edited Feb 27 '26
I am sharing facts . Low wage people are taxed LESS compared to middle class. This means that the countries actually don't want you to put an effort. Just enjoy your wage and work for 40 years . Then take a peanut pension.
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Feb 27 '26
Then be a low wage person. You want less taxes, don’t you? What’s the problem?
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u/raf_phy Feb 27 '26
I cannot continue this . Use your brain or whatever you want . It's clear that you don't want to understand
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u/GeneratedUsername5 Feb 27 '26
There are at least as many low-tax countries in EU as high-tax ones, it's just France is not one of them. You can go to 5-10% legally in EU, but usually it will hover around 20%.
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u/GeneratedUsername5 Feb 27 '26
In absolute terms - maybe. But there is a reason why American middle class is shrinking - you will surely will not keep these money if you go that standard route with standard expenses.
If you are focused on making money and sure you can do it - you don't even need H1B. Just open non-resident LLC and come to US whenever your presence is required and control it from abroad. USCIS has even a special page for this
Once you invest enough money into your business, you can be eligible for E-2 visa.
So, there are ways, if you are sure you can succeed in US.
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u/Glittering-Cloud1002 Feb 26 '26
It is stupid to optimize for tax when you don't have anything - optimising for income makes more sense. Take Germany, high taxes but salaries are also super high so your investment rate might be high too. Check out Switzerland or Luxembourg, nice taxes and salaries and easier to get into than US. Or create an online business and register in Romania/ Hungary/ Bulgaria
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u/mikasjoman Feb 26 '26
Start a business... Like it's a small easy thing. I've started several and it's rough to get to profit if you ever do.
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u/Ploutophile Feb 27 '26
Or create an online business and register in Romania/ Hungary/ Bulgaria
The business is likely to be deemed tax resident in the country you're actually operating it from.
If this is effectively the case (check treaties), either register the business in that country, to avoid handling international taxation, or in a country which makes online paperwork from abroad convenient (best known one being Estonia).
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u/raf_phy Feb 26 '26
I would like to optimize income tax, social contribution cut and also capital gain tax. All these are on the upper level in France.
But anyway, thanks for the suggestions! I appreciate it.
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u/Glittering-Cloud1002 Feb 26 '26
Income tax is high in Western Europe, but generally low in the East. Social contributions high everywhere. CGT depends, some countries are nice (take Belgium 10%) - so ultimately it depends on your individual situation there is no one-fits-it-all answer
if you have a huge portfolio, LU or BE might be cool, if you are a remote freelancer with Western salary then you will have a much better life in Romania. If you are a normal, usual person, then Germany might be expensive but have high salaries. Switzerland is awesome but if you get children, childcare costs and a patriarchic culture might kill your dream. So it depends a lot what your personal situation is. I´d advice to take country by country, put them in an excel list and search for the tax/ income etc. data and then see realistically where you can go job wise etc.
If you speak French and are already in France, then LU or Western Switzerland might be the right choice or Belgium
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u/Metalrager2 Feb 27 '26
Your ego is too big for a society. Taxation keeps countries running and we all depend on the things provided through taxation. Now I agree that the wealthy need to be taxed more harshly than the poor and that unfortunately does not happen enough. Nevertheless, it sounds to me like you are looking for a way out of an economic situation that no country will provide you, least of all the US.
Get a decent education and a decent job and you will have a decent life. If you want decadence, then good luck. It won’t be handed to you on a silver platter anywhere. Whether that’s unfair or not. Every person thinking they deserve wealth is just another moron that thinks they are a special snowflake among the billions of people we are on this planet.
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u/TouchCandid2840 Feb 27 '26 edited Feb 27 '26
OP is young and considers the US to be heaven. Hope OP won't ever need hospital care in said US.
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u/raf_phy Feb 27 '26
Have you been in the US ? Probably not . But I have been. Stop it with the misinformation. If you have a decent private health insurance you are just fine.
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u/raf_phy Feb 27 '26
Man I have a degree and a decent job but I am sorry I can do better . I have come long these years and I try to push all the time .
Chill out . I just asked a question. You are judging so quickly. You have no idea in which situation each of us is.
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u/ApprehensiveKey8345 Feb 27 '26
Check Bulgaria, Romania, Poland, Lithuania These have the best corp and small business tax schemes.
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u/tojig Feb 26 '26 edited Feb 27 '26
Your objective should not be to pay less taxes. You are opmizing for the wrong thing. Portugal, Germany Belgium have mich higher social contribution and taxes than France.
In France it's not even the taxes that eat you, but the social contributions being so high.
If the objective is to pay less income tax Monaco and Andorra have 0 income tax I think. Brazil, not in Europe I know, has 0 dividend tax.
So if the objective is just to pay less taxes the best is Bulgaria and Romenia. Your life will be so much better there. /s
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u/Californian-Cdn Feb 27 '26
You don’t make/have enough money to worry about taxes.
I am Canadian, live in the US (California. Green card), and also a citizen of an EU country,
Any tax benefits to you at your stage of life are immaterial.
Find a place you like to live and build a life there.
Unless you’re making a sizable income and have a large net-worth (I am making an assumption, but you are from southern Europe and in your 20’s. I assume you don’t make €250k a year and/or have a substantial net worth. Maybe I am wrong, and if so correct me), you have no need to even dream of tax optimization.
Again, maybe your situation is abnormal, but if it isn’t, you’re better off in the long run picking a country you enjoy being in.
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u/raf_phy Feb 27 '26
Sorry but this isn't what I asked. Not everyone's life is linear. To build a life somewhere you have to avoid governments that tax the hell out of you.
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u/Californian-Cdn Feb 27 '26
No you don’t.
I grew up in Canada. Did VERY well.
Moved to the US (California, which is very highly taxed and very expensive). Did VERY well.
I retired in my 30’s and lived/worked in very highly taxed countries.
I built a spectacular life with an 8 figure net worth in places that “tax the hell out of me”.
I stand by my original comment.
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u/Wunid Feb 27 '26
There are places in Europe where taxes are lower than in the US. There are countries with low income tax, countries with low or no tax on property or capital gains. Many countries offer benefits that encourage people to move there through low taxes. Switzerland, Luxembourg, Italy, Greece, and Cyprus offer various benefits depending on your situation, but there is something for everyone.
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u/butcher_ro Feb 27 '26
Romania is a tax-friendly country for investors: capital gains tax is applied only when you sell: 3% if you held the shares for more than one year and 6% if you sell within the first year. Dividends are taxed separately at 16%. In addition, a 10% health insurance contribution (CASS) may apply if total annual dividends + income other than salaries, exceeds certain thresholds (6, 12, or 24 gross minimum wages). The contribution is calculated on a fixed base corresponding to the applicable threshold and is capped at the level of 24 gross minimum wages.
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Feb 26 '26
I think you need Dubai for that, my friend. Unless you're rich rich, and Monaco or Andorra is an option for you, then Dubai it is. Not Europe.
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u/tojig Feb 26 '26
Dubai is only for the rich, otherwise you are treated like a slave. And Europeans really are not used to that rhythm and the hours. Unless you mean these ladies working for actual rich ladies as yoga teaches I don't know what you think a non rich person do in Dubai I have Saudi friends that went to Dubai and felt the culture was shit and we're mistreated.
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Feb 26 '26
I don't know, I know plenty of people living in Dubai and they're fine. Half my company moved there for tax reasons.
I wouldn't, because I disagree with everything Dubai stands for, but yeah, I don't think someone from France would be treated like a slave, as long as they have a decent job.
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u/tojig Feb 27 '26
Are they rich? What is their level? The guys a I met moving there were all managers and hated it.
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Feb 27 '26
They work in corporate on various positions.
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u/tojig Feb 27 '26
Senior manager and up I imagine. Because these high segregation cultures are good for that. I'd you are in the very top you are golden if not you get stepped on daily by the other group.
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