Spain
Heavy monthly Autónomo contributions even when profit is low, plus a steep progressive IRPF schedule on what you earn.
Corporate tax rate is only half the story. This model adds the fixed and “hidden” costs that bite freelancers and lean companies in Spain, France, and Italy — and contrasts them with Estonia’s 0% tax on reinvested profit and dividend taxation only on what you take out.
Heavy monthly Autónomo contributions even when profit is low, plus a steep progressive IRPF schedule on what you earn.
Very high cotisations sociales — often quoted up to ~45% of income for solo structures — before aggressive IRPF on top slices.
Bureaucracy-heavy compliance and, in several regimes, effective tax on income that feels “virtual” when you sell digital services cross-border.
0% corporate income tax on profit left inside the OÜ. Dividends are taxed when distributed — your edge when you reinvest.
Numbers are illustrative (not individual tax advice). Adjust to stress-test your scenario.
Model defaults: Estonia ~25% on declared withdrawals + ~€150/mo compliance stack; Spain ~34% blended burden + €300/mo Autónomo-style fixed floor; France ~42% + €200/mo compliance proxy; Italy ~36% + €250/mo admin proxy. Southern regimes stay punitive even when you reinvest — Estonia does not tax retained profit at the corporate level.
Estonia e-Residency + OÜ setup through our partner flow. Compare providers anytime on the comparison page.
Digital signatures and online registry workflows — no standing in line at a tax office.
No corporate income tax on retained earnings until distribution — reinvest in product, ads, or hiring without an immediate corporate tax bill.
An EU legal entity that payment providers and clients recognize — with Estonia’s digital-first admin on top.