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11 April 2026

Tax-Efficient Business Structures in the EU

Choosing the right legal structure for your EU freelance business affects tax, liability, and how clients perceive you. Here is what to consider in 2026.

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Sole trader = simple, unlimited liability, profits taxed as personal income. Limited company = liability protection, corporate tax rate (20-28%), profit retention. Break-even for incorporation: ~€60-100k annual profit. Estonia OÜ popular for digital services (0% on retained profits). CFC rules prevent tax avoidance via foreign incorporation. Manage finances with Arbeitly. More on the blog.

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