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How much does it cost to be an entrepreneur in Europe?

starting up price

One of the biggest changes entrepreneurs need to face when they decide to launch a startup has to do with their work status: going from being an employee at a company to being self-employed means crossing a line that also comes with doubts, regardless of which country you live in.  However, across the whole European Union the self-employed have to live with regulations and expenses which are constantly changing. 

According to the latest reports published by JP Morgan Chase News Skills at Work, about 14% of Europeans are self-employed but this average hides large differences between countries: in Greece 30% of the population are self-employed whereas in Norway that figure falls to 6%.  This diversity in the ratios of self-employed is also reflected in the conditions, rights and obligations of these workers. 

Germany: A compulsory insurance of between 150 to 200 Euros must be paid.  Furthermore, if the self-employed person’s profits are more than 1,700 Euros per month, they need to pay an extra fee of 140 Euros monthly. 

Austria:  There is no monthly fee but they must pay for health insurance by a variable amount.  

Belgium:  There is no monthly fee but the taxes range between 25% to 50% depending on income. 

Cyprus:  There is no monthly fee but taxes are paid depending on the overall yearly income. 

Croatia:  Self-employed must pay a concept of 500 Euros for registration.  At the end of the year they pay 20% in taxes based on income.  

Denmark:  There is no monthly fee and between 25% and 50% are paid in taxes at the end of the year. 

Slovakia:  Self-employed must pay 50 Euros for registration.  At the end of the year a tax rate is calculated according to their income. 

Slovenia:  A variable percentage is paid based on income.

Spain:  A minimum of 264 Euros needs to be paid and 19% taxes. 

Estonia:  Self-employed pay a 100 Euro fee at the start of their activity and later a percentage of their income is subject to taxes. 

Finland:  There is no monthly fee.  Taxes are paid based on a percentage of their income. 

France:  The first year of activity the self-employed don’t need to pay anything.  After that, a tax rate is calculated according to their income. 

Greece:  They pay 50 Euros as a month fee and a variable percentage of taxes are based on income. 

Holland:  Self-employed must pay 50 Euros as a registration fee and 100 Euros monthly for compulsory medical insurance. 

Ireland:  There is no monthly no registration fee and 5% of income is paid in taxes. 

Italy:  Self-employed only need to pay based on their income and the limit is set at 20% for taxes. 

Latvia:  There is no registration or monthly fee and taxes range between 9% and 24%. 

Lithuania:  There is no registration or monthly fee and the percentage of taxes is paid based on the activity and income. 

Luxembourg:  There is no registration or monthly fee but the bureaucracy in this country is complex and one must show competency to be self-employed in order to receive a permit.  Taxes are paid based on the activity and income. 

Malta:  There is no registration or monthly fee and the tax rate varies and is based on the activity and income. 

Poland:  There is no registration fee, but the monthly fee is 200 Euros.  At the end of the year taxes are calculated based on income. 

Portugal:  There is no monthly fee.  24% of yearly income is paid in taxes. 

United Kingdom:  The monthly fee ranges between 13 and 58 Euros according to income, an on top of which a tax rate is later calculated to be paid. 

Czech Republic:  There is a registration fee of 40 Euros.  After, taxes are paid according to income. 

Romania:  The registration fee is 100 Euros, after which yearly taxes are paid according to income. 

Sweden:  There is no registration or monthly fee.  The self-employed could pay up to 50% of their income in taxes. 

Apart from the cost of being self-employed in each country, there also exist a number of different social protections and aids for them as well. 

Comments

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Christian

Christian Atz

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Is the compulsory insurance in Germany the health insurance? It seems much higher to me.
19/02/2016 1 0 1
Cole

Cole Byrn

Chatterbox Explorer Evaluator Respondant Debater Influencer FACEr
I don't know about Germany, but other countries such as Spain offer discounts to those who are first time self-employed, which isn't reflected in this article.. I think it's just an outline of the average costs in different countries without getting too specific.
22/02/2016 3 0 0
Maria

Maria Coco

Chatterbox Explorer Evaluator Respondant Debater Influencer FACEr
In Spain the situation is complicated for self-employed . They have to work hard if they want to earn enough to have a decent wage and to live well.
25/02/2016 1 0 1

Chatterbox Explorer Evaluator Respondant Debater Influencer FACEr
I totally agree with you, María Coco.
31/05/2016 0 0 0
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