Italy has a corporate tax rate of 27.9%. Companies that operate under VAT have to pay tax on purchases at 22%. Certain services, like those related to some foodstuffs, water supplies, some pharmaceutical products, domestic passenger transport, admission to cultural events, some social housing, and others, benefit from a 10% VAT rate.
Multinational companies and governments around the world are increasingly looking to Africa as a new business destination. Africa's economy has grown at a rate of around 5.3% per year over the last decade and six of the world's ten fastest growing economies are located here. These countries have a fast-growing middle class that contributes to rapid urbanization that is increasing faster than their cities' infrastructure can keep up. It is a common misconception that many economies in Africa are heavily dependent on energy production. In reality, the oil and gas sector accounted for only 11% of Nigeria's GDP in 2014, while the construction sector accounted for 20%.
When considering doing business in Africa, it is not a matter of choosing just one country or all 54; A regional approach makes more sense. Sub-Saharan Africa, for example, refers to sub-Saharan countries such as Angola, Kenya, South Africa and Nigeria. Many companies already doing business in Africa are separating their businesses in North Africa and Sub-Saharan Africa due to the stark economic, linguistic and cultural differences between the two regions. Here are our top 5 African countries for doing business:
Mauritius Mauritius is known for offering an extremely favorable business environment for investment and business growth. The process of incorporating a company and starting new business activities in Mauritius is believed to be straightforward and relatively easy. Mauritius' economy is mainly based on textiles, tourism, sugar and financial services, although recently other sectors such as renewable energy and information technology are expanding rapidly. The World Bank ranked Mauritius 49th in its Doing Business 2017 ranking, largely due to its pro-business approach to dealing with building permits, enforcing contracts and protecting minority investors. Another ranking of African countries places Mauritius first based on factors such as law and security, economy, human development and human rights.
Rwanda Despite nearly a decade of Rwanda's civil war, the country's leaders and citizens alike have worked to achieve a healthy business climate and a strong overall economy. According to the World Bank, Rwanda is the second easiest place to do business in Africa and ranks 56th in the Doing Business ranking. This is because the procedures for registering a property, obtaining credit and trading across borders have been greatly simplified. Tourism is currently the fastest growing sector in Rwanda. According to our research, businesses can be incorporated and operating in as little as three days.
Botswana Since gaining independence, Botswana has had one of the fastest per capita economic growth rates in the world. As the government works to diversify the country's profitable industries, the mining of diamonds and other precious metals is currently the main contributor to the country's economy. Recently, Botswana has managed to reduce the time it takes for various processes including import and export and business formation procedures. In addition, technological upgrades have reduced the average court length for commercial disputes to 625 days (from 987 days in 2008). Thanks to these improvements, Botswana ranks 71st in the World Bank's Doing Business 2017 ranking.
South Africa South Africa's key industries are automobile manufacturing, tourism, mining and information and communication technologies. South Africa has managed to simplify its import and export procedures, resulting in less time and fewer documents required. In addition, the South African authorities have simplified tax legislation, reducing the number of hours required to prepare tax reports. The World Bank ranked South Africa 74th for ease of doing business in 2017.
Kenya Another country to keep an eye on is Kenya, which is currently making huge investments in sectors such as telecom, transport and energy. With a tech-savvy workforce and high-speed internet, Kenya stands out as one of the top countries in Africa for tech startups, while its diversified economy, strong ownership rights, excellent tourism sector and improving infrastructure make it a great location for general start a new company. If you have further questions about company formation or banking in Africa. Please contact us now.
Given that within the European Union there are no withholding taxes on IP royalties between member states, we can suggest a number of countries where royalties are particularly advantageous.
CYPRUS The intellectual property royalties tax regime in Cyprus has changed as a result of the recommendations of the Organization for Economic Co-operation and Development (OECD) Action Report 5 and the Ecofin Council conclusions published on 8 December 2015. Legislation has been changed to limit the companies that can benefit from research and development (R&D) exemptions, but the tax rate in Cyprus is still one of the most favorable in the EU for foreign companies using Cyprus intellectual property want to license -resident companies (intermediaries), where this right is then sub-licensed to the end user. Overall, the effective tax on IP royalty income should be less than 2.5%.
IRELAND In 2015 Ireland introduced an effective corporation tax rate of 6.25% on intellectual property income based on an allowance for research and development costs borne by the company. By linking the two components in this way, Irish law encourages companies to conduct R&D directly within the EU - leading to the creation of intellectual property - while discouraging them from acquiring licenses without directly committing to R&D.
BELGIUM Belgium has introduced a tax system that favors those with income from acquired copyrights. This tax regime can have many different applications and can be used to protect artworks as well as a useful tax break for IT developers. Income from IP rights royalties is taxed at 15%. This income is not taken into account when calculating social security contributions. In addition, these taxes are reduced by 50% for imports due to the application of standard import costs. The first €15,000 that a copyright owner earns in a year is therefore taxed at 7.5%, and the next €15,000 at 11.25%. This tax system applies to people with a total annual income of up to 56,450 euros.
LUXEMBOURG In general, corporate tax in Luxembourg is 29.22%, but for IP licensing income it can be as low as 5.8%. This is due to an 80% corporate income tax exemption. Interestingly, this exemption also applies to companies that have registered a patent for use in connection with their own business, which then calculate a notional net income as if they had received the licensing income.
ITALY Italy is a larger market compared to the other countries discussed and can be a very attractive place for a company to invest in R&D since 2015 companies have been able to deduct intellectual property income from their taxable income base. The tax deduction was set at 30% in 2015, 40% in 2016 and 50% from 2017. Businesses will therefore enjoy a significant tax rebate by reducing their taxable income.
THE NETHERLANDS Since 2010, IP income has been taxed at only 5% in the Netherlands. Except for patents, there is no income limit. Patent holders can actually have access to this tax regime if their share of the expected revenue is between 30% and 70%, taking into account the total combined revenue from patents and other sources. These rates also apply to foreign companies owning intangible assets or companies that have received research and development accreditation from the Dutch Ministry of Economic Affairs if they are owners of software IP or trade secrets. The only other caveat to this favorable tax regime is that it doesn't apply to marketing and branding-related assets.
Today it is impossible to fully participate in the modern economy without a bank account; It is considered an essential part of the life of every successful person. Single market legislation guarantees that banks can operate without restrictions throughout the European Union. The ability to offer cross-border services helps EU citizens and non-EU citizens to open bank accounts for various purposes.
There are more than 7000 banks and other credit institutions in the European Union. At the end of 2016, more than 2.8 million people were employed in the EU banking sector. EU residents and non-EU residents tend to open different types of bank accounts. Bank accounts fall into five types: savings accounts, money market accounts, checking accounts, retirement accounts, and deposit insurance accounts.
Savings accounts are considered to be the best accounts for your savings. Checking accounts provide customers with the ability to deposit checks, pay bills, and make withdrawals. Debit cards are a primary form of payment for this type of account. Current accounts are used by the majority of customers and are suitable for anyone who needs to make deposits and has a balance of less than EUR 5,000. A call money account makes sense for someone with a usual balance between 5,000 and 10,000 EUR. This type of account is a great option if you want to park cash. Certificates of deposit are not very popular. In most cases, they are used to hold money that you don't need to spend as locking the funds allows you to earn more interest. Finally, retirement accounts are good for saving for the future and offer some tax advantages.
A major benefit of having an EU bank account is that you don't have to live in the European Union to have an account here. If you process your transactions in euros, you can of course save on exchange fees. Security is also a strong incentive to open a bank account in the EU. European banks typically offer state-of-the-art services, including a large network of ATMs that operate 24/7 and secure online banking. The cost of opening an account is usually very low. In some cases you can get a free credit card, usually a Visa or MasterCard.
Today, many non-EU citizens are granted permission to travel freely, either for leisure or work, and to open bank accounts within the EU, just like EU citizens. However, it is still necessary to understand the procedural requirements and to clarify certain issues that at first glance may seem a bit challenging for a non-EU citizen. Some of these issues relate to banking in general, while others are specific to opening a corporate bank account in an EU country.
The first problem is the location. It is highly advisable to choose the country where you open your bank account wisely and base your choice not only on your preferences but also on your account opening purposes. In general, non-EU citizens find opening a corporate bank account in the EU very beneficial, mainly because of the quality services that the well-regulated European system offers. Banks across the European Union are keen to support businesses and welcome new customers and it is a common policy to offer flexibility and attractive discounts.
In order to simplify the application process and make it faster and more convenient, most EU banks allow you to fill out the application form online. As a rule, the time frame for answering the request ranges from a few hours (in rare cases only 30-40 minutes can be sufficient) up to five working days, depending on the type of request. However, you should take into account that non-EU citizens may be charged an additional fee for opening a corporate or other type of bank account, depending on the bank's terms and conditions.
Given the challenges a non-EU citizen can face when opening a corporate bank account in the European Union, the only constant is the translation and, as it is often called, notarization of all required documents. Note that the amount of documents required may vary slightly from country to country, which may cause inconveniences from time to time.
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Tue Mar 11, 2025 4:52 pm
