Today we’re going to talk about seven countries I would invest in Europe considering the current economic conditions.
Looking for the best countries to invest in Europe? Discover the top seven countries offering favorable economic conditions for investors. From Malta’s thriving real estate market to Montenegro’s potential EU membership, each country presents unique advantages. Explore Ireland’s low corporate tax rates and hybrid status, the Czech Republic’s low bureaucracy and tax rates, Albania’s underdeveloped sectors and strategic location, Andorra’s steady population growth and low taxes, and Cyprus’ net population growth and flexible immigration policy. Invest wisely and seize the opportunities across Europe.
Malta
Malta is the first country in our list today of the seven countries to invest in Europe and it has indeed a number of positive aspects that are already attracting investors worldwide to the country. We can start with the fact that Malta is one of the few countries where english is an official language in the European Union together with Ireland. This per se already brings its own advantages when dealing with business contracts, for example. Malta is also the fastest growing country in southern Europe when we talk about population, which reflects on a thriving real estate market in the island country. One of the disadvantages of Malta, however, is its high corporate income tax at 35%, however, there are a number of refund possibilities when distributing dividends, for example, making the actual corporate income tax rate in Malta much lower than 35% and sometimes it can be even as low as 5%. There are ongoing talks regarding a tax reform in Malta, but for now these are the conditions. On top of that Malta is one of the most-friendly nations in western Europe when it comes to visa and residence permit policies. There are many options for non-eu citizens that want to acquire residency in Malta.
As a matter of fact, Malta offers the cheapest option when it comes to permanent residency in a new country part of the Schengen area. With a total investment under 150 000 euros you can become a permanent resident in Malta in about one year. There is also an option for digital nomads, which was recently introduced and also has pretty good tax advantages for remote workers willing to move to the island.
Montenegro
Montenegro is the second country in our list today and actually has a lot of similarities with Malta. It is a small country, it uses the euro as its currency and it starts with them. Jokes aside, Montenegro keys advantages are related to its low cost of running a business, as well as a low corporate and personal income tax rate. One of the reasons why I chose Montenegro is because there is a high chance of the country joining the European union in this decade. At the moment there is still no official date for this to happen but some EU officials speculate that this can happen as soon as 2025. When Montenegro joined the European Union, we can expect a higher inflow of people and capital to this small Balkan nation.
Real estate in Montenegro can be a good investment, however, some areas like the Kotor Bay already have high prices and I would even call them overpriced in some specific cases. Other areas of country can offer good possibilities but it is unclear how much of the market can grow, even with Montenegro joining the EU. On top of that, it is really easy to get a residence permit in Montenegro, you can do this by buying any residential property in the country, regardless of the value or by opening a company in Montenegro.
Ireland
Ireland is another country that deserves a place in the list of the best countries to invest in Europe currently. One of the key advantages of Ireland is its hybrid situation, it is at the same time a member of the European Union while also keeping a number of agreements with the United Kingdom. Citizens of Ireland can live and work in the UK, which is something not available for EU citizens anymore, unless they arrange a work visa after Brexit. If you reside in Ireland for five consecutive years you can apply for Irish citizenship and then you will have one of the most powerful passports in the world.
One of the main reasons why Ireland has become so rich and attractive is for its low corporate tax rates. Personal income tax rates are on the other hand not necessarily low and comparable to most western European countries. It is important to note that Ireland is a very expensive country, but you can invest in Ireland even if you are not a wealthy investor. There is an ETF following a number of Irish spots, trading with a ticker e-i-r-l.
Czech Republic
The Czech Republic also now referred to as Czechia is in my opinion one of the best countries to invest in Europe. Some of the key advantages of the Czech Republic are a low level of bureaucracy and low tax rates when compared to other central European countries like Poland and Hungary, especially for small businesses. Czechia is also considerably cheaper than its other neighbors which are Austria and Germany. For that reason, there’s a quite high number of German-speaking businessmen relocating to the Czech Republic. So to put it simply the Czech Republic attracts businessmen and investors from all parts of Europe and it will continue to do so in this decade.
In terms of acquiring residency, Czechia is also more friendly than Poland, Germany and Austria, and comparable to Slovakia. You can move to the Czech Republic as a self-employed person or as a director of a limited liability company, even if you are not an EU or EEA national. When it comes to real estate the number of opportunities is relative, Prague already has pretty high prices per square meter but the population of the city keeps growing steadily. In my humble opinion Brno might be a good option.
Albania
Albania is the next country I would consider for an investment in Europe. The main reasons for this are a lot of room to improve in terms of infrastructure, various underdeveloped economic sectors, a safe and strategic location and low taxes. The first reason why I believe Albania is a good place to invest is that it still has a largely underdeveloped transport and tourism infrastructure, when compared to other countries nearby like Italy and Greece. As Albania is building new roads, airports and ports with funds from foreign investors, I believe more and more people will be attracted to visit and invest in the country.
Real estate in Albania is among the cheapest if you consider all the coast of the Adriatic and the Ionian Sea. Cities like Vlorë and surrounded offer properties for a fraction of what they would cost in Croatia or Greece. These cities can be even considerably cheaper than Montenegro. The low real estate prices combined with growing foreign investment make Albania one of the best deals, in my opinion, in Europe at the moment. On top of that it is extremely easy to get a residence permit in Albania with recent changes on its immigration laws, EU and U.S citizens can get a five-year residence permit in the first application to live in Albania. The cherry on a cake is that if you are a freelancer in Albania, you can work tax free for up to a certain threshold.
Check our other article on Albania if you are interested to move to Albania, right below.
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Andorra
Andorra is another of my favorite countries in Europe and probably a good idea if you want to invest in western Europe. One of the reasons why Andorra is a good pick is in my opinion because the country is rarely in the media and usually the best investment opportunities exist when most people are not talking about it. The country has a steady population growth with a striving real estate market making the overall economic conditions in Andorra rather favorable. Prices are much lower in Andorra than in other European micronations, like Monaco or Liechtenstein.
Getting a residence permitted in Andorra is also relatively easy considering that a country is in western Europe. One of the most obvious advantages of Andorra are its low tax rates, the personal income tax rate in Andorra sits at a 10% flat rate, much lower than in its neighbors France and Spain.
There are a few residents permit options in Andorra, including options for freelancers, businessmen and also for passive income earners.
Cyprus
Cyprus is one of the best countries to invest in Europe, especially if you are starting or running an online business or if you are a stock investor. There are three points that mainly put Cyprus on the list: Net population growth, low taxes and a flexible immigration policy. So, Cyprus is an idol nation on the Mediterranean, but unlike its two closest historical neighbors, Greece and Turkey, things are going pretty well in Cyprus when it comes to its economy.
Cyprus has low corporate tax rates and a non-dom regime for expats that choose to live on the island with a number of tax advantages. Just these two things have helped Cyprus to attract foreign talent and foreign money constantly. On top of that it is easier to immigrate to Cyprus than to most other countries in European Union, especially if we only take into account those with similar income levels or above than the one in Cyprus.
Cyprus is also one of the few countries in the European Union that has a fast track to permanent residency by investment. Most other European countries offering golden visas only offer a temporary residence permit through a golden investment.
