Globalisation has opened the door for companies of all sizes to explore new markets. Today, international expansion is no longer reserved for large multinationals – small and medium-size enterprises are increasingly taking their business across borders to tap into new customer bases, diversify risk and reach long-term growth. With the right preparation, entering a new jurisdiction can accelerate revenue and strengthen a company’s global presence.

But success depends on understanding that each country operates under its own set of legal, tax and employment rules. Incorporation procedures, corporate tax rates, payroll obligations and labour-law frameworks can differ significantly from one market to another. These differences shape how quickly a business can launch operations, how much it will cost and what level of compliance is required from day one.

This article offers a concise summary of key findings from an international expansion overview prepared together with Accace Circle, a global business community of local BPO experts and advisors. The 2026 edition compares essential business, tax and employment information across 13 countries: Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Lithuania, Poland, Romania, Slovakia, Spain, Turkey and Ukraine.

Company formation: Timelines, forms and fees

Across the 13 countries included in the study, limited liability companies remain the most common and business-friendly legal form. This structure is widely used in Bulgaria, the Czech Republic, Hungary, Poland, Romania, Slovakia, Spain, Turkey and Ukraine. Cyprus commonly uses a limited company, while Estonia and Lithuania typically use a private limited company. In Greece, the private company, known as an IKE, is a common choice.

The time needed to establish a company varies considerably. Some jurisdictions offer particularly fast incorporation: registration in Ukraine may be completed within 24 hours, while Romania generally requires around three working days. Estonia and Greece report incorporation periods of approximately five days, while Lithuania typically requires three to five business days.

Other jurisdictions involve longer procedures. Company formation in Cyprus usually takes three to four weeks, while Poland generally requires two to three weeks. Slovakia may take up to two weeks, Spain ranges from five days to two weeks and Hungary from one to 15 days. Bulgaria reports the broadest estimated range, from one day to two months.

Incorporation fees differ just as significantly. Hungary, Romania and Ukraine may offer registration without a standard incorporation fee under specified conditions. Bulgaria’s approximate fee ranges from EUR 29 to EUR 107, while Lithuania charges around EUR 100 and Poland approximately EUR 116. Fees are higher in Greece, at around EUR 1,000, while costs in Spain may range from EUR 150 to EUR 2,000 depending on the circumstances. In Cyprus, the cost consists of the service provider’s fee and related disbursements.

Corporate tax frameworks: Comparing CIT, VAT and tax periods

Understanding the local tax environment is essential when assessing the long-term cost of doing business abroad. Corporate income tax rates across the reviewed countries range from highly competitive single-digit rates to standard rates of 25%.

Hungary offers the lowest standard corporate income tax rate in the comparison, at 9%, followed by Bulgaria at 10%. Cyprus applies a standard rate of 15%, Romania 16%, Lithuania 17%, Ukraine 18% and Poland 19%. The standard rates in the Czech Republic, Estonia and Greece range from 21% to 22%, while Spain and Turkey apply a standard rate of 25%. Slovakia operates a tiered system, with rates ranging from 10% to 24% depending on annual taxable revenue. Several countries also provide reduced or preferential rates for qualifying companies, investment funds, new businesses or smaller taxpayers.

Tax periods also vary. Bulgaria, Greece, Lithuania, Poland, Spain and Ukraine generally follow the calendar year. Cyprus, the Czech Republic, Hungary, Romania, Slovakia and Turkey allow the use of a calendar or fiscal year. Estonia applies a monthly tax period, reflecting its distinctive corporate tax system under which undistributed profits are not subject to annual corporate income tax.

VAT systems show similar diversity. Standard rates range from 19% in Cyprus to 27% in Hungary. Bulgaria, Turkey and Ukraine apply a standard rate of 20%; the Czech Republic, Lithuania, Romania and Spain apply 21%; Poland and Slovakia apply 23%; and Estonia and Greece apply 24%. Most jurisdictions also offer one or more reduced or zero rates for specified goods, services, exports or exempt transactions.

Labour law and employment: Payroll, PIT and contributions

Expanding into a new market also means becoming familiar with local employment regulations. Personal income tax structures differ significantly, ranging from flat-rate systems to progressive tax bands.

Bulgaria and Romania apply a standard personal income tax rate of 10%, while Hungary applies a flat rate of 15% and Ukraine 18%, together with a 5% military tax. Estonia applies a 22% rate. Other countries operate progressive systems: Cyprus applies rates from 0% to 35%, Poland from 12% to 32%, Lithuania from 20% to 32%, Slovakia from 19% to 35%, Turkey from 15% to 40%, Greece from 9% to 44% and Spain from 19% to 47%.

Social security and health insurance contributions are another important factor in evaluating employment costs. Employer social security rates range from relatively low levels in Lithuania, Cyprus and Hungary to more than 30% in Estonia and Spain. Employee contributions also vary considerably, from 0% in Ukraine and 1.6% in Estonia to 25% in Romania.

The way health insurance is financed differs across jurisdictions. In countries such as Estonia, Greece, Hungary, Lithuania and Turkey, health insurance is included within general social security contributions. Other countries calculate separate employer or employee health insurance contributions, meaning businesses must assess the complete contribution structure rather than relying on a single headline rate.

Want the full comparison?

This summary highlights only the core data points. The full infographic offers a user-friendly country-by-country comparison, including:

  • Key industries and investment opportunities
  • Incentives for investors
  • Tax rates with more details
  • Employment rules and thresholds

To access the complete version, visit the Accace website and download the full international expansion infographic.

 

From local to global: Your expert guide for cross-border growth

This infographic is brought to you by the Accace Circle business community. Access practical insight from industry experts across 60+ countries within Accace Circle, shared through ongoing webinars, podcasts and publications, to support your international expansion.

Data in this infographic reflects the status as of July 21, 2026 and is for informational purposes only. It does not constitute legal advice.