Choosing the best European country to be self-employed in completely depends on your personal preferences, business needs, and lifestyle aspirations.
Whether you want to prioritize low taxes, a vibrant cultural scene, or stunning natural landscapes, there’s a perfect destination for every self-employed expat in Europe – the difficulty comes in finding it!
That’s why I’ve put together this in-depth guide based on my own experience as a digital nomad to help you navigate this often confusing minefield!
Best Countries to Go Self Employed in Europe

1) Estonia: The Digital Nomad’s Paradise
Tax Benefits and Business Environment
Estonia has gained a fantastic reputation as a digital nomad haven, thanks to its forward-thinking e-residency program.
This innovative program allows non-Estonians to establish and manage an EU-based business entirely online.
Estonia’s corporate tax rate is 20%, but the kicker is that retained and reinvested profits are completely tax-free.
This means you can grow your business without any immediate tax burdens.
Lifestyle and Activities
Tallinn, Estonia’s capital, is a blend of medieval charm and modern innovation.
The city’s vibrant tech scene, affordable cost of living, and high-speed internet make it a perfect base for tech-savvy entrepreneurs.
Explore the historic Old Town, relax in cozy cafes, and enjoy Estonia’s beautiful countryside with its forests and lakes.
2) Portugal: The Sunshine Hub for Entrepreneurs
Tax Benefits and Business Environment
Portugal is becoming increasingly popular among self-employed expats, thanks to its Non-Habitual Resident (NHR) tax regime.
This program offers significant tax breaks for the first ten years, including a flat 20% income tax rate for self-employed individuals in high-value professions.
Additionally, many foreign income sources can be exempt from taxation.
The only downside is what happens after those 10 years should you wish to stay – you’ll need to become a resident which means you’ll have to pay progressive 20-45% tax rates depending on your turnover.
Lifestyle and Activities
Portugal’s warm climate, stunning coastline, and friendly locals create an inviting atmosphere for expats.
Lisbon and Porto are bustling cities with thriving start-up scenes, while the Algarve offers a laid-back beach lifestyle.
Enjoy surfing, wine tasting, and exploring picturesque towns with cobbled streets and colorful tiles.
3) Germany: The Heart of Europe’s Economy
Tax Benefits and Business Environment
Germany offers a robust economy and a well-structured business environment, making it a great place for self-employed professionals.
The country’s income tax system is progressive, with rates ranging from 0% to 45%, but there are many deductions and benefits for self-employed individuals.
Moreover, Germany’s comprehensive social security system provides a small safety net for freelancers.
Lifestyle and Activities
Berlin is a dynamic city known for its arts, culture, and entrepreneurial spirit. Munich and Hamburg also offer excellent business opportunities and quality of life.
Germany’s efficient public transportation, world-class healthcare, and rich history make it a comfortable and inspiring place to live.
Enjoy the country’s beautiful landscapes, from the Bavarian Alps to the Rhine Valley, and indulge in its famous beer and hearty cuisine.
4) Spain: The Vibrant and Affordable Choice
Tax Benefits and Business Environment
Spain is an attractive destination for self-employed expats due to its relatively low cost of living and favorable tax conditions.
The country offers a special tax regime for foreigners called the “Beckham Law,” which allows qualifying individuals to pay a flat income tax rate of 24% on their Spanish income for up to six years.
Additionally, Spain has several incentives for start-ups and entrepreneurs, including grants, funding opportunities, and tax breaks for innovative business ventures.
Spain also offers reduced social security contributions for newly self-employed individuals during the first year of activity.
Lifestyle and Activities
Spain’s vibrant culture, sunny weather, and diverse landscapes make it a fantastic place to live and work.
Barcelona and Madrid are bustling cities with thriving business communities, while Valencia offers a more relaxed pace with beautiful beaches.
Experience Spain’s rich history, enjoy tapas and flamenco, and explore its stunning coastline and mountain ranges.
5) Netherlands: The Progressive Entrepreneur’s Choice
Tax Benefits and Business Environment
The Netherlands is renowned for its business-friendly environment and excellent infrastructure.
The country offers various tax incentives for self-employed individuals, including a self-employed tax deduction and additional benefits for start-ups.
The income tax rate is progressive, with several brackets and isn’t the lowest on this list, but the overall tax burden is manageable thanks to these incentives.
Lifestyle and Activities
Amsterdam, with its picturesque canals and vibrant cultural scene, is a popular choice for expats.
The Netherlands boasts excellent public transportation, a high standard of living, and a welcoming atmosphere for international entrepreneurs.
Enjoy cycling through the charming Dutch countryside, visiting world-class museums, and indulging in the country’s culinary delights.
6) Ireland: The Emerald Isle of Opportunities
Tax Benefits and Business Environment
Ireland’s pro-business environment and low corporate tax rate of 12.5% make it an appealing destination for self-employed individuals.
The country also offers various incentives for start-ups and entrepreneurs, including grants and funding opportunities.
Ireland’s tax system is straightforward, and the government is supportive of new business ventures.
Lifestyle and Activities
Dublin is a thriving tech hub with a vibrant expat community, while the rest of Ireland offers stunning natural beauty and a rich cultural heritage.
Explore the scenic landscapes of the Wild Atlantic Way, visit historic castles, and enjoy the lively pub culture.
Ireland’s friendly locals and strong sense of community make it a welcoming place to call home.
7) Sweden: The Socially Conscious Entrepreneur’s Dream
Tax Benefits and Business Environment
Sweden’s well-developed infrastructure and high quality of life make it an attractive destination for self-employed individuals.
While the tax rates are relatively high, Sweden offers generous social benefits, including healthcare, education, and retirement plans.
The country also has various incentives for start-ups, especially in the tech and innovation sectors.
Lifestyle and Activities
Stockholm, Sweden’s capital, is a hub of innovation and creativity, with a thriving start-up ecosystem.
The country’s stunning natural landscapes, from the archipelagos to the northern lights, provide endless opportunities for outdoor adventures.
Enjoy Sweden’s clean air, efficient public services, and a balanced lifestyle that values work-life harmony.
8) Czech Republic: The Affordable and Historic Gem
Tax Benefits and Business Environment
The Czech Republic offers a low cost of living and a favorable tax environment for self-employed individuals.
The country’s flat income tax rate is 15%, and there are various deductions available to reduce the tax burden.
Additionally, the Czech Republic has a growing start-up scene, especially in Prague.
Lifestyle and Activities
Prague, with its stunning architecture and rich history, is a favorite among expats.
The city’s vibrant cultural scene, affordable living costs, and excellent public transportation make it an ideal base for self-employed professionals.
Explore the country’s historic castles, charming towns, and beautiful countryside, and enjoy the Czech Republic’s renowned beer and cuisine.
9) Switzerland: The Land of Precision and High Quality
Tax Benefits and Business Environment
Switzerland is known for its stable economy, high standard of living, and favorable business environment.
The country’s tax rates vary by canton, but word of advice, this isn’t a country you go to if you’re seeking low tax rates.
Canton tax rates seem deceptively low at first, but when you factor in all the other taxes, living here is no easy feat (unless of course you’re making 6 figures plus).
That said, Switzerland is a beautiful country and does offers excellent infrastructure, a skilled workforce, and a strong emphasis on innovation and quality.
Lifestyle and Activities
Zurich and Geneva are global financial centers with vibrant expat communities, while the picturesque towns of Lucerne and Interlaken offer stunning natural beauty.
Switzerland’s efficient public transportation, world-class healthcare, and pristine landscapes make it an ideal destination for those seeking a very high quality of life.
Enjoy skiing in the Alps, hiking through scenic trails, and savoring Swiss chocolate and cheese.
10) Malta: The Sunny Island with a Business Edge
Tax Benefits and Business Environment
Malta offers a favorable tax regime for self-employed individuals and businesses, with a corporate tax rate that can be effectively reduced to 5% through a system of tax credits and refunds.
The country’s strategic location, English-speaking environment, and robust legal framework make it an attractive destination for entrepreneurs.
Lifestyle and Activities
Malta’s sunny climate, beautiful beaches, and rich history create an inviting atmosphere for expats.
Valletta, the capital, is a UNESCO World Heritage site with stunning architecture and a vibrant cultural scene.
Explore Malta’s ancient temples, enjoy water sports in the crystal-clear Mediterranean, and experience the island’s lively festivals and delicious cuisine.