Is It Really Easier to Start a Business Abroad, or Just an Illusion?

Many believe that starting and running a business abroad is simpler and comes with better conditions than in their home country. But is this actually true? Let’s take a closer look at a few specific examples!

Italy: Starting a sole proprietorship (partita IVA) in Italy is a relatively straightforward process. Administrative burdens are moderate, and registration is quick. However, about one-third of earnings go to taxes, and social security contributions are mandatory. Despite paying these, retirement savings remain low, so it’s advisable to plan personal savings as well.

Paraguay: Paraguay offers a business-friendly tax environment. Setting up a sole proprietorship is relatively simple, and taxes are low. The country operates on a territorial tax system, meaning only income generated within Paraguay is taxable. While the administrative processes are easy, consulting a local expert is recommended for precise details.

Bali (Indonesia): Bali is a hotspot for entrepreneurs, especially in tourism and hospitality. However, starting a business here as a foreigner can be challenging due to strict regulations and licensing requirements. The tax system is complex, and foreign business owners must comply with multiple tax obligations. Seeking local legal advice is highly recommended.

Denmark: Starting a sole proprietorship (Enkeltmandsvirksomhed) in Denmark is quick and can be done online. The tax system is progressive, meaning the higher the income, the higher the tax rate. Additionally, social security contributions are mandatory. While Denmark has high taxes, the quality of public services is also exceptional.

Although some countries offer favourable tax conditions or simpler administration for entrepreneurs, each has its own unique challenges and requirements.

💬 What do you think? Have you ever experienced that running a business abroad is easier or harder? Which country would you try it in? Share your thoughts in the comments! 👇

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