For those considering making the leap to freelancing or launching their own small business, new research from Europe’s second-largest neobank, bunq, provides valuable insights into the costs of establishing a business across the EU’s top 10 economies. The findings highlight Ireland as a notably accessible option for aspiring entrepreneurs and location-independent workers seeking to kick start a new venture.
Low Entry Costs Offset by Professional Fees
Ireland emerges as a compelling option for those exploring a new start up, with particularly low initial financial hurdles. Ireland has a nominal €50 fee for entry in the commercial register, charged by the Companies Registration Office (CRO) to formally register a business. Along with a minimal €1 minimum capital requirement and an average cost for a business bank account of €7.17, this contributes to a very low initial cost base.
Excluding tax advisor fees, potential staffing costs, and other overheads these mandatory government and basic setup costs total just €58.17, before professional advice. With an average hourly rate of €50, the cost for 15 hours of tax advisor support in Ireland amounts to €750, bringing the total projected start up business cost to €808.17.
How Ireland Compares: A European Snapshot
While Greece (€287) and Portugal (€751) offer the lowest startup costs, Ireland’s total of €808.17 is competitive. In stark contrast are countries like Germany (€26,266) and Italy (€13,512), where entrepreneurs face significantly higher initial expenses, largely due to mandatory capital requirements. Notably, Ireland also compares favourably on the cost of essential tax advice (€750 for 15 hours), sitting well below countries like France (€3,300) and Austria (€3,000). For comparison, the UK’s post-Brexit startup costs are broadly similar, with a £50 registration fee and no minimum capital requirement, but business banking and tax advisory fees can run higher.
Competitive Corporation Tax a Major Draw
Ireland’s highly competitive corporation tax rate of 12.5% remains a significant advantage for businesses looking to establish a base within the EU, and also compares favourably to the UK’s tiered system, which ranges from 19% to 25% depending on profits. This factor, combined with the low initial setup costs, positions Ireland as an appealing destination for startups and expanding companies.
Bianca Zwart, Chief Strategy Officer at bunq, comments on the research: “Many people dream of starting their own business or pursuing a location-independent career. As an entrepreneur, I know how time-consuming and costly the start-up process can be, however flexible online banking can make life easier.”
“bunq research shows that start-up costs vary greatly across Europe, with bureaucratic hurdles and legal requirements playing a role. Nevertheless, with our analysis, we want to enable budding entrepreneurs to better assess the financial requirements and start their business more confidently in whichever market they choose.”
