Where Should Chinese Citizens Live in the EU?

Comparison of European Countries for Business Establishment for Chinese Citizens

In recent years, Europe has become one of the most attractive destinations for Chinese entrepreneurs seeking stable jurisdictions, robust consumer markets and long-term residency options. Setting up a company in the European Union provides access to a market of 450 million consumers, as well as favourable tax regimes, reliable banking systems and family relocation programmes.

However, choosing the right country is crucial, as taxation, business regulations, costs and government policies can vary significantly. Below, we compare the most popular European countries for Chinese citizens considering setting up a business or migrating for investment purposes.

Top advantages of doing business in the EU

For Chinese entrepreneurs and investors, the European Union represents a vast marketplace and a stable, predictable environment for long-term business development. The EU is home to over 450 million consumers, with a combined GDP exceeding €15 trillion, making it one of the largest and most diverse economies in the world. The key advantages that make Europe one of the most sought-after destinations for Chinese business expansion and investment are outlined below.

Advantage Description
Single Market Access Once a company is registered in an EU member state, it gains access to all 27 EU countries without facing any trade barriers.
Residency by Investment or Business Activity Many EU countries (e.g. Portugal, Greece, Cyprus and Malta) offer residency permits through business establishment or real estate purchase.
Transparent Legal Framework The EU ensures the protection of investors’ rights, intellectual property and contract enforcement.
Tax incentives and holding structures Several countries offer corporate tax rates below 15%, or special regimes for start-ups and holding companies.
Family benefits Relocating entrepreneurs can enjoy EU-standard education, healthcare and social security.

Comparison of European Countries for Business Establishment for Chinese Citizens1. Access to the Single European Market

One of the most significant benefits of setting up a company in an EU member state is unrestricted access to the Single Market. Once a business is registered in any EU country, it can trade goods and services freely across all 27 member states, without facing additional import duties or border controls.

For example, a company registered in Cyprus or Estonia could sell its products in Germany, France or Italy under the same regulatory framework. For Chinese exporters, this dramatically reduces administrative barriers and creates opportunities for wholesale, e-commerce and distribution across the whole of Europe.

2. Business Residency and Family Relocation Options

Many EU countries offer residency benefits alongside business establishment. Through direct investment or entrepreneurial activity, Chinese citizens can obtain temporary or permanent residence permits for themselves and their families.

Countries such as Portugal, Greece, Malta and Cyprus offer residence permits to company owners, directors and key employees, as well as granting their family members access to EU-level education and healthcare systems.

For families planning to relocate, this combination of business ownership and residency offers significant advantages over purely investment-based immigration programmes in other parts of the world.

3. Transparent Legal and Financial Framework

Europe’s legal environment is renowned for its transparency, predictability and investor protection. The EU enforces strict anti-fraud, anti-corruption, and consumer protection standards, ensuring a level playing field for both domestic and foreign entrepreneurs.

Each EU country adheres to a robust legal system that guarantees the protection of intellectual property, commercial contracts and corporate governance standards. This is particularly important for Chinese technology and manufacturing companies seeking to protect their patents, software or trade secrets within the European market.

4. Attractive tax systems and incentives

While European tax rates vary from country to country, many jurisdictions offer special regimes and incentives for foreign investors and international business structures.

For example:

  • Cyprus has one of the lowest corporate tax rates in the EU (12.5%) and does not tax dividends received by non-residents.
  • Malta operates a refund mechanism that allows foreign shareholders to benefit from effective corporate tax rates of around 5%.
  • Estonia only taxes profits when they are distributed, meaning all reinvested income is tax-free.
  • Hungary offers the lowest standard corporate tax rate in the EU at 9%, combined with multiple R&D deductions.

These structures make Europe highly attractive to Chinese holding companies, exporters and trading entities seeking tax efficiency and legal stability.

5. Strong banking, payment and infrastructure systems

European countries provide reliable banking systems, secure payment channels and modern financial services that support international transactions in multiple currencies. For Chinese clients engaged in cross-border trade, access to SEPA payments, EU banking licences and multi-currency accounts simplifies operations between Europe and Asia.

Additionally, Europe’s world-class logistics infrastructure, including ports, railways and air connections, makes it easy for Chinese businesses to import goods from China and distribute them efficiently throughout the continent.

6. Innovation, stability and reputation

European countries are recognised around the world for their political stability, low levels of corruption, and innovation-friendly ecosystems. For Chinese entrepreneurs, establishing an EU-based entity lends credibility when entering global markets or collaborating with Western partners.

EU-based companies benefit from simplified cross-border collaboration, participation in European funding programmes and eligibility for various EU grants and R&D incentives. This creates a secure environment for long-term growth and international recognition.

7. Access to a Skilled Workforce and High Living Standards

When Chinese companies relocate or expand their operations in Europe, they gain access to a highly educated and multilingual workforce. Furthermore, Europe boasts some of the highest living standards in the world, making it an attractive destination for company owners and their families.

Entrepreneurs who relocate with their families can benefit from world-class education, public healthcare and personal safety, all of which contribute to a balanced lifestyle alongside business growth.

Top 15 European Countries for Chinese Entrepreneurs

Selecting the right jurisdiction in the European Union is one of the most important strategic decisions for Chinese investors and entrepreneurs. Each country offers a different combination of tax advantages, residency options, business regulations and sector-specific opportunities. Below, we present a comprehensive overview of the 15 most attractive European countries for establishing a Chinese business, highlighting key benefits, taxation systems, and practical insights. Selecting the right jurisdiction in the European Union is one of the most important strategic decisions for Chinese investors and entrepreneurs. Each country offers a different combination of tax advantages, residency options, business regulations and sector-specific opportunities. Below, we present a comprehensive overview of the 15 most attractive European countries for establishing a Chinese business, highlighting key benefits, taxation systems, and practical insights.

Rank Country Corporate tax Residency options Business setup time Key advantages for Chinese investors
1 Cyprus: 12.5% Business and property investment 7–10 days Advantages: low tax rate, English-speaking environment, fast company registration, ideal for import/export.
2 Malta: Effective tax rate of ~5%. Business/Citizenship by Investment 1–2 weeks Attractive tax refund system and EU passport programmes. English-speaking.
3 Portugal 21% (reduced for start-ups). Golden Visa, Business Visa 10–15 days Residency via investment, a friendly immigration policy and a large Chinese community.
4 Estonia: Tax rate of 20% (only on distributed profits). E-residency (online) 1–5 days Full online company setup with a strong IT infrastructure and zero tax on reinvested profits.
5 Ireland: 12.5% Business or employment-based Setup takes 7–10 days. Ideal for tech or trading companies due to low taxes and English-speaking population.
6 Lithuania 15% Business residency route 5–7 days Simple business registration and a fast visa for entrepreneurs.
7 Poland 19%/9% (small business). Work and business visas 7–14 days A manufacturing hub with a strategic location in Central Europe.
8 Czech Republic 19% Business residency Setup in 10–14 days. Access to the central EU market and affordable setup costs.
9 Netherlands 25.8%/19%. Start-up and self-employment permits 7–10 days Strong logistics and excellent IP and holding structures.
10 Hungary 9% Business residency 5–7 days It has the lowest corporate tax in the EU and offers fast-track residency and Chinese-friendly banking.
11 Greece: 22% Golden Visa/business permit 10–15 days Residency for property or business investors; affordable living.
12 Latvia 15% Business residency 7–10 days Easy company registration and a stable tax policy.
13 Bulgaria: 10% Business or investment visa Registration takes 5–7 days. The lowest tax rate in the EU and low operating costs.
14 Luxembourg 24.9% Business permit 10–15 days. Ideal for financial holdings and with a strong Chinese investor base.
15 Germany: 15% + local tax Business residency 10–20 days A leading industrial market with credibility and access to EU funding.

Cyprus:

Corporate tax: 12.5%
Company setup time: 7–10 days.
Residency: Available through company ownership or real estate investment.

Cyprus remains one of the most popular destinations for Chinese investors. It offers a favourable tax environment and an English-speaking legal system based on common law. The country offers non-residents exemption from tax on dividend income, an efficient IP box regime for technology companies and straightforward company registration.

Due to its excellent logistics and strong ties with China, Chinese entrepreneurs often choose Cyprus as a trading hub between Europe and Asia. Many use it to hold assets, manage EU operations or set up import/export businesses.

Malta

Corporate tax: 35% (effective ~5% through refund system).
Residency: Available through business activity or citizenship by investment.
Setup time: 1–2 weeks

Malta is a reputable EU jurisdiction offering an exceptionally competitive effective tax rate through a shareholder refund mechanism. This makes it ideal for international trading, consulting and holding structures. The country boasts a stable political environment, English as an official language, and a robust financial services sector.

For Chinese investors, Malta provides a strategic gateway to both the EU and North Africa and offers one of the few citizenship-by-investment programmes in the European Union.

Portugal

Corporate tax: 21% (lower rates for start-ups).
Residency: Business visa or Golden Visa programme
Setup time: 10–15 days.

Portugal is one of the most attractive countries for those seeking business opportunities and residency. The Golden Visa programme enables Chinese investors to obtain residency by investing in a business or property, and offers the possibility of permanent residency after five years.

Portugal also offers a Non-Habitual Resident (NHR) tax regime for newcomers, which reduces personal taxes on foreign income. Portugal is also a growing hub for technology, renewable energy and the import-export sectors, and has a strong Chinese community and direct connections to Asia.

Estonia

Corporate tax: 20% (only on distributed profits).
Residency: E-Residency (online digital status).
Setup time: 1–5 days

Estonia is globally recognised for its digital governance and e-Residency programme, which allows foreign nationals, including Chinese citizens, to register and manage a company online from anywhere in the world. The country’s innovative tax system, which only taxes profits when they are distributed, makes Estonia one of the most efficient jurisdictions for start-ups and IT businesses.

Chinese entrepreneurs in technology, software development and digital services often choose Estonia because of its modern business environment and transparent regulations.

Ireland

Corporate tax: 12.5%
Residency: Business or employment-based
Setup time: 7–10 days.

Ireland is home to the European headquarters of major global corporations, including Google, Apple and TikTok. The country offers low corporate tax rates, a skilled English-speaking workforce and a favourable regulatory climate for international companies.

Ireland provides Chinese investors with excellent access to both the EU and UK markets, as well as opportunities in technology, pharmaceuticals, and financial services.

Lithuania

Corporate tax: 15% (5% for small enterprises).
Residency: Available through company ownership.
Setup time: 5–7 days

Lithuania is a rapidly developing EU country with one of the fastest registration procedures and a growing ecosystem for fintech, manufacturing and logistics. The government actively supports international start-ups through accelerator programmes and simplified visa procedures.

Many Chinese entrepreneurs use Lithuania as an affordable base for e-commerce, trading and distribution across Northern Europe.

Poland

Corporate tax: 19% / 9% (small companies)
Residency: Business and work visa
Setup time: 7–14 days

Poland has the largest economy in Central Europe and is a key manufacturing hub. It offers competitive labour costs, a large domestic market and a strategic location between Western and Eastern Europe.

Many Chinese companies in the automotive parts, electronics and construction materials industries establish subsidiaries here. Furthermore, Poland has a stable tax regime and offers incentives for innovation and R&D.

Czech Republic:

Corporate tax: 19%
Residency: Business visa route available.
Setup time: 10–14 days

The Czech Republic offers an excellent business environment for industrial, manufacturing and technology-based enterprises. It boasts one of the most highly educated workforces in Central Europe, competitive operating costs and a robust infrastructure network.

For Chinese companies involved in machinery, logistics or IT, the Czech Republic is a strategic entry point to the EU with reliable connectivity to Germany and Austria.

Netherlands

Corporate tax: 19% (up to €200,000 profit); 25.8% thereafter
Residency: Start-up visa or self-employed permit
Setup time: 7–10 days

The Netherlands is one of the most respected jurisdictions for international trading, holding and logistics operations. The country has double tax treaties with over 100 countries, ensuring tax efficiency and transparency.

It is also renowned for its Innovation Box regime, which reduces tax on IP-related income to as little as 7%. For Chinese investors, the Netherlands offers credibility, financial stability and advanced infrastructure, making it an ideal location for cross-border operations.

Hungary:

Corporate tax: 9%
Residency: Business residency
Setup time: 5–7 days

Hungary offers the lowest corporate tax rate in the EU, as well as a fast and investor-friendly business environment. Its central location makes the country a strong hub for manufacturing, logistics and trading.

Chinese entrepreneurs can benefit from fast-track business visas, affordable company formation, and cooperation programmes between Chinese and Hungarian chambers of commerce.

Greece

Corporate tax: 22%
Residency: Golden Visa and business visa
Setup time: 10–15 days

Greece has become a popular destination for Chinese investors thanks to its affordable Golden Visa programme and its strategic position between Europe, Asia and Africa.

Chinese entrepreneurs are increasingly active in the tourism, shipping and real estate sectors. The Greek market also provides opportunities in renewable energy and infrastructure projects, with government incentives for foreign investors.

Latvia

Corporate tax: 15%
Residency: Business residency
Setup time: 7–10 days

Latvia offers a straightforward incorporation process and favourable conditions for small and medium-sized enterprises. Its tax system allows for the deferral of taxation on undistributed profits (similar to Estonia’s system), which is advantageous for businesses focused on reinvestment.

For Chinese investors, Latvia offers proximity to Scandinavian markets and represents a cost-effective alternative to Western Europe.

Bulgaria:

Corporate tax: 10%
Residency: Business or investment visa
Setup time: 5–7 days

Bulgaria has the lowest flat tax rate in the European Union, as well as an affordable cost of living. The country is becoming an increasingly popular choice for Chinese companies involved in manufacturing, IT and logistics.

Business residency can be obtained through company ownership, making Bulgaria an ideal jurisdiction for low-cost, tax-efficient access to the EU market.

Luxembourg

Corporate tax: 24.9%
Residency: Business permit
Setup time: 10–15 days

One of the world’s leading financial and investment hubs, Luxembourg is an ideal location for holding companies and fund structures. The country offers robust banking systems, investor protection and an international business culture.

Chinese investors often use Luxembourg as a financial bridge for European investments or for managing multinational assets within the EU.

Germany:

Corporate tax: 15% plus local trade tax (average total ~30%).
Residency: Business residency permit
Setup time: 10–20 days

Germany is the largest economy in Europe and one of the most respected business destinations worldwide. Although taxes are higher than in smaller jurisdictions, Germany offers unmatched credibility, industrial power and access to EU funding programmes.

Chinese manufacturing, automotive and technology firms often set up subsidiaries in Germany to strengthen their European presence and forge partnerships with major EU companies.

Taxation overview

When expanding to Europe, taxation is one of the most important factors for Chinese investors. The European Union has no unified tax rate – each member state applies its own regimes for corporate tax, dividend tax and value-added tax (VAT), often with unique incentives for international business.

Understanding these systems enables Chinese entrepreneurs to select the most efficient jurisdiction, structure their companies effectively, and mitigate the risk of double taxation through bilateral treaties between China and EU countries.

Country Corporate Tax Rate Dividend Tax VAT Rate Special Incentives
Cyprus 12.5% 0–17% 19% IP box regime, no tax on dividends for non-residents.
Hungary 9% 15% 27% Lowest EU tax, R&D incentives.
Estonia 20% (only distributed) 0% (if reinvested) 20% Tax on distribution only.
Malta 35% (5% effective) 0–10% 18% Refund system for foreign shareholders.
Bulgaria 10% 5% 20% Low flat tax rate.
Ireland 12.5% 20% 23% FDI incentives, tech-friendly.
Portugal 21% 28% 23% Startup programs, NHR regime.
Greece 22% 5–10% 24% Golden Visa investors’ tax benefits.
Lithuania 15% 15% 21% Small business 5% regime.
Netherlands 19–25.8% 15% 21% Innovation box tax relief.

1. Corporate Income Tax (CIT).

Corporate tax rates in Europe typically range from 9% to 25%, depending on the jurisdiction. While larger countries such as France and Germany have higher rates, smaller member states offer significantly lower rates or optimised regimes designed to attract foreign capital.

For example:

  • Hungary has the lowest rate in the EU at 9%, combined with generous R&D tax credits and investment incentives.
  • Cyprus applies a flat rate of 5% and provides exemptions for foreign-sourced income and dividends.
  • Malta has a nominal rate of 35%, but foreign shareholders receive tax refunds, which reduces the effective rate to around 5%.
  • Estonia only taxes profits when they are distributed, meaning that reinvested income is completely tax-free.
  • Bulgaria offers a 10% flat corporate tax rate, one of the lowest in Europe and ideal for holding or production-oriented businesses.

This flexibility enables Chinese companies to select a structure that balances tax efficiency and operational substance depending on their business activity, whether that be trading, manufacturing or technology.

2. Dividend taxation and repatriation of profits

Most EU countries apply a withholding tax on dividends distributed to foreign shareholders. These rates usually range from 5% to 15%, but can be reduced – or even eliminated – through Double Taxation Treaties (DTTs) between China and individual EU member states.

For instance:

Under the China–Cyprus tax treaty, dividends may be taxed at 5% if the recipient holds at least 10% of the company’s shares.
Similar treaties apply in Hungary and Malta, allowing Chinese shareholders to repatriate profits efficiently.
Some jurisdictions, such as Estonia and Latvia, defer taxation until dividends are distributed, which makes them highly efficient for companies based on reinvestment.

These arrangements enable investors to manage cross-border cash flows legally and transparently.

3. Value-Added Tax (VAT)

VAT is a consumption-based tax applied to goods and services sold within the EU. The standard VAT rate varies from 17% to 27%, depending on the country.

Country Standard VAT rate Reduced VAT options Key notes for Chinese traders
Cyprus 19% 9%, 5% This is common for import/export and logistics companies.
Malta 18% 7%, 5%. Simplified VAT compliance for online sales.
Hungary 27% 18%, 5% The highest VAT rate in the EU, but input credits are available.
Portugal 23% 13%, 6%. VAT registration is mandatory for importers.
Lithuania 21% 9%, 5%. This is efficient for e-commerce companies.
Netherlands 21% 9%, 0%. Excellent for international logistics and warehousing.
Bulgaria 20% 9% Suitable for low-cost production and exports.

For Chinese exporters, VAT registration is essential when selling goods or services within the EU. Many companies choose to establish their headquarters in countries with low administrative requirements, such as Cyprus or the Netherlands, which offer simplified intra-EU VAT compliance systems and EORI (customs) registration.

4. Special incentives and tax relief programmes

Several EU member states have introduced targeted incentive schemes to attract international investors, start-ups and technology projects.

  • The Innovation Box in the Netherlands offers reduced tax (as low as 7%) on income from patented technologies or IP rights.
  • Intellectual Property Box (Cyprus): 80% deduction on profits from IP assets, ideal for Chinese tech and R&D companies.
  • Startup Incentives (Portugal and Lithuania): Lower tax rates for newly incorporated businesses during their first years of activity.
  • R&D Deduction (Hungary, Ireland): generous tax credits and grants for research-driven industries.
  • The Non-Habitual Resident Regime in Portugal offers foreign entrepreneurs and their families 10 years of personal tax benefits.

By combining these incentives strategically with efficient company structures, Chinese investors can optimise both corporate and personal taxation while maintaining full legal compliance within the EU.

5. Holding and Group Structures

The EU is particularly advantageous for forming holding companies, which can be used to manage subsidiaries, intellectual property or investments across multiple jurisdictions.

Cyprus, Luxembourg and the Netherlands are internationally recognised as holding hubs thanks to their extensive treaty networks, capital gains exemptions and lack of withholding tax on outbound dividends (subject to certain conditions).

Chinese enterprises often use EU holding companies to consolidate European operations, benefit from intra-EU tax exemptions and streamline the flow of profits back to Asia.

6. Double Taxation Agreements (DTAs) with China

China has signed double taxation treaties with over 100 countries, including all major EU jurisdictions. These treaties protect investors from being taxed twice on the same income and establish clear regulations regarding corporate profits, dividends, and royalties.

For example:

  • The China–Malta treaty ensures reduced rates for dividend and interest payments.
  • The China–Ireland treaty facilitates the exchange of information and tax cooperation to ensure compliance and transparency.
  • The China–Cyprus treaty provides robust safeguards for investment flows and efficient dispute resolution.

These frameworks establish the European Union as one of the most tax-transparent and secure destinations for Chinese outbound investments.

7. Practical considerations

When planning tax structuring, Chinese entrepreneurs should consider the following:

  1. The substance requirements, ensuring a genuine business presence (office, staff or operations).
  2. Accounting and audit obligations – annual reporting is mandatory in all EU countries.
  3.  Currency and repatriation rules – ensuring that the company can legally transfer profits to China.
  4. Sector-specific incentives, e.g. for renewable energy, IT, import/export or manufacturing.

Engaging professional advisors ensures compliance with both the EU and Chinese tax authorities, preventing penalties or double taxation.

Which country should you choose?

Selecting the right country in Europe in which to form a company depends on your primary business objectives, tax priorities and lifestyle expectations. There is no one-size-fits-all jurisdiction – the ideal choice for each Chinese entrepreneur will depend on whether the focus is on trade, investment, technology or family relocation.

Below is a breakdown of the best countries by strategic category, designed to help you navigate the European market with clarity and confidence.

1. Lowest corporate taxes

If your main objective is to minimise your tax burden while maintaining legal compliance and EU market access, the following countries stand out:

Country Corporate Tax Rate Why choose it?
Hungary 9% It has the lowest corporate tax rate in the EU and is ideal for manufacturing, logistics and trading operations.
Bulgaria 10% A flat and transparent tax system, low operational costs and easy access to Eastern and Central European markets.
Cyprus 12.5% English-speaking system, a strong network of double tax treaties and no tax on dividends for non-residents.

Best suited to: international trading companies, import/export structures and cost-sensitive investment vehicles.

2. Technology and innovation-based start-ups

Entrepreneurs working in digital services, IT development or high-tech industries will find certain EU countries especially advantageous due to their modern infrastructure and R&D incentives.

Country Key benefit
Estonia: – 0% tax on reinvested profits
– Full online management via e-Residency
– Leading digital infrastructure
Ireland: A 12.5% tax rate, strong intellectual property protection and international recognition in the tech sector.
The Netherlands: The Innovation Box regime offers tax as low as 7% on IP income and is excellent for holding and licensing operations.

Ireland is best for software companies, digital service providers, fintech start-ups, and AI or e-commerce ventures.

These jurisdictions offer a combination of low taxes on innovation and prestige and credibility, helping Chinese tech firms to scale up internationally.

3. Residency and family relocation

For many Chinese entrepreneurs, establishing a business in Europe is closely linked with the goal of relocating with family members and accessing EU lifestyle benefits, such as education, healthcare and security.

Country Residency Path Highlights
Portugal Business visa or Golden Visa A path to permanent residency and EU citizenship within 5 years. Enjoy an excellent quality of life and a strong Chinese community.
Greece: Golden Visa Obtain residency through real estate or business investment. Enjoy a low cost of living and a family-friendly environment.
Malta: Citizenship and residency programmes Access to EU healthcare and education, an English-speaking country and a strong Chinese expat presence.

Best suited to entrepreneurs seeking business ownership and personal relocation benefits without excessive bureaucracy.

In Malta, Chinese business owners can secure EU residency by actively managing a company, which allows them and their families to live, work and study in Europe.

4. Trading, logistics and distribution

If your goal is to manage import/export, wholesale or logistics operations, certain countries offer strategic geographic advantages and simplified customs procedures.

Country Strategic advantage
Cyprus: A gateway between Asia, the Middle East, and Europe, it is ideal for shipping and re-export.
The Netherlands: It is one of the world’s largest logistics hubs, with Rotterdam and Amsterdam ports connecting to the entire EU.
Poland: A central location with direct access to Western and Eastern European markets.

Best for: Chinese trading companies dealing in electronics, textiles, manufacturing materials or cross-border e-commerce.

These jurisdictions are also part of the Belt and Road Initiative, offering opportunities for Chinese exporters seeking long-term integration into the European market.

5. Holding and Investment Structures

Holding companies in certain EU jurisdictions can optimise international tax efficiency and profit repatriation for investors managing multiple subsidiaries, intellectual property, or real estate portfolios.

Country Key benefit
Luxembourg: A top-tier holding hub offering investor protection and a vast treaty network.
Cyprus: No tax on dividends or capital gains from qualifying subsidiaries.
Netherlands: A reliable jurisdiction for holding intellectual property and licensing rights.

Best suited to large-scale Chinese enterprises managing multi-country operations or seeking to protect overseas investments through a reputable EU-based structure.

6. Affordable setup and simple administration

Simplicity and low costs are key considerations for smaller Chinese companies or first-time EU investors.

Country Setup time Why it’s attractive
Lithuania: 5–7 days Fast incorporation, digital registration and cost-effective accounting.
Latvia: 7–10 days Flexible tax on distributed profits and straightforward residency options.
Bulgaria: 5–7 days Low company maintenance costs, an affordable workforce and a stable legal environment.

Best for: SMEs and new entrants to the EU market seeking an efficient and straightforward entry point for European expansion.

7. Manufacturing and industrial expansion

China’s industrial companies looking to expand their production into Europe can benefit from low-cost labour markets, EU subsidies and logistical proximity to Western Europe.

Country Strengths
Poland: – Industrial hub for automotive, electronics and logistics companies.
Hungary: Strategic location and an investor-friendly tax regime. Numerous Chinese joint ventures.
The Czech Republic: Skilled workforce and advanced engineering capabilities.

Best suited to companies producing or assembling goods intended for EU or UK markets, which benefit from EU ‘Made in Europe’ labelling and reduced shipping costs.

8. Key decision factors to consider:

Before deciding, Chinese investors should evaluate:

  • Business purpose: trading, manufacturing, technology or holding.
  • Residency requirements: whether personal or family relocation is intended.
  • Tax exposure, including corporate, dividend and personal taxes.
  •  Regulatory environment, including banking, compliance, and reporting obligations.
  • Language and accessibility: English-speaking vs. local-language environments.
  • Banking support: the ease with which corporate accounts can be opened for non-EU citizens.

These factors determine not only how easy it will be to start and maintain a company, but also how efficiently profits can be managed and repatriated to China.

Key considerations before choosing a country

For many Chinese entrepreneurs, entering the European market is an enthusiastic endeavour, driven by a vision of global expansion and the desire to access the EU’s vast consumer base and secure a long-term foothold in a stable economy.
However, the choice of where to establish a company in Europe is not only a matter of tax rates or registration speed. It is a strategic decision that defines the company’s future success, financial health and even family lifestyle.

Before selecting a jurisdiction, every investor should consider several critical factors – from practical business needs to legal obligations and cultural compatibility.

1. Residency and visa regulations

For many Chinese investors, business incorporation is closely tied to the goal of obtaining legal residency within the European Union.
While most EU countries welcome foreign business owners, their immigration and visa frameworks vary greatly.

Portugal and Greece, for instance, offer flexible pathways to residency through business establishment or investment. Entrepreneurs can register a company, demonstrate genuine business activity and receive a renewable residence permit for themselves and their families.
Conversely, Estonia permits remote digital incorporation via its e-Residency programme, though this does not automatically grant physical residency – a distinction that new investors sometimes overlook.

When choosing a jurisdiction, it is crucial to consider whether your business goals include personal relocation, family reunification or the purely remote management of operations. Each objective will lead to a different set of ideal countries.

2. Substance and Real Presence Requirements

In recent years, European tax authorities have become more focused on the concept of ‘economic substance’ – meaning that a company must demonstrate genuine activity, rather than just having a registered address.
This can include:

– a physical office or workspace;
– a local director or employee;
– actual business transactions within the EU.

For instance, if a Chinese investor establishes a company in Cyprus or Malta, it should ideally demonstrate genuine commercial operations or, at the very least, a local management presence in order to qualify for tax incentives and avoid reputational risks.

Countries such as Estonia, Lithuania and Hungary have more flexible requirements, allowing remote management with minimal infrastructure, which is ideal for digital entrepreneurs.
However, investors planning long-term growth should consider establishing a visible European footprint to enhance credibility with banks, partners, and tax authorities.

3. Banking and Financial Operations

Opening a bank account can be the most challenging aspect of setting up a company for non-EU residents.
European banks apply stringent due diligence procedures under EU anti-money laundering (AML) laws, meaning applicants must prove the legitimacy of their funds, the purpose of their business, and the source of their income.

Some countries, such as Cyprus, Portugal and Ireland, have banking systems that are more business-friendly for international clients.
In contrast, others, such as Germany and France, may require personal visits, detailed documentation, and longer approval times.

Many Chinese entrepreneurs therefore prefer to work with fintech institutions or EU-regulated payment platforms, which offer faster onboarding, multi-currency accounts and integration with global payment systems.
Nevertheless, proper preparation and professional support during the banking process can save weeks, or even months, of delay.

4. Accounting, Reporting and Tax Compliance

Each EU country has its own accounting standards and reporting deadlines. In some jurisdictions, companies must submit audited financial statements annually, even if they are small.

For example:

Ireland and the Netherlands have rigorous reporting rules for all limited companies.
In contrast, Lithuania, Cyprus and Hungary offer simplified reporting for small enterprises.
Malta and Luxembourg require audited accounts if certain turnover thresholds are reached.

Chinese investors should also plan for VAT registration, particularly if the company intends to trade across EU borders or import goods from China.
Understanding these obligations in advance will help to ensure that your company stays compliant, avoids penalties and maintains its reputation with European regulators.

5. Double Taxation Treaties and Profit Repatriation

The relationship between China and EU countries is reinforced by a strong network of double taxation treaties (DTTs).
These agreements prevent the same income from being taxed in both jurisdictions and facilitate the smooth repatriation of profits to China.

When selecting a country, it is essential to check whether the treaty provides reduced withholding tax rates on dividends, interest and royalties.
Cyprus, Hungary and Malta, for example, all have favourable treaties with China, making them ideal locations for holding and trading structures.

Working with a professional advisor will ensure that your company’s structure complies with both EU and Chinese tax rules, avoiding unnecessary burdens or double taxation on cross-border income.

6. Sector-specific opportunities

Each European country has its own economic strengths and industry focus.
For instance:

  • Estonia excels in IT, blockchain, and e-government solutions.
  • Poland and Hungary are leaders in the automotive and manufacturing sectors.
  • Portugal and Greece attract investors in tourism, renewable energy and real estate.
  • Meanwhile, Ireland and the Netherlands specialise in financial services and global logistics.

For a Chinese investor, aligning your business model with the local economic ecosystem can significantly boost your chances of success.
Registering in a country that aligns with your industry can make it easier to hire staff, access local support programmes and obtain government grants or EU funding.

7. Cultural Compatibility and Business Environment

Beyond numbers and regulations, cultural compatibility plays a quiet but powerful role in your success in Europe.
Countries such as Cyprus, Malta and Ireland have English-speaking administrations and international corporate cultures, making communication smooth and business processes transparent.
Other nations, while highly efficient, rely more on their local language for bureaucratic interaction; examples include Germany, France, and the Czech Republic.

Chinese entrepreneurs often find that operating in English-friendly jurisdictions simplifies coordination with accountants, banks, and legal advisors, allowing them to focus on business growth rather than translation.

8. Strategic Planning and Professional Guidance

Finally, the most successful international expansions are those that are planned strategically, rather than improvised.
A well-structured entry plan should include:

– Jurisdiction analysis (tax, banking, immigration);
– corporate structuring advice (holding or trading entity);
– ongoing compliance and accounting support;
– Family relocation and residency strategy.

By working with a specialised European corporate advisory firm, you can ensure that every step, from company registration to visa application, is properly coordinated.
This saves time and money, and builds long-term legal security and confidence for your European venture.

Europe remains one of the most promising destinations for Chinese entrepreneurs ready to take their business global. It is a region where economic stability, transparent legislation and access to the global market meet opportunities for innovation, family relocation and long-term wealth protection.

Investors accustomed to the fast pace of Asia’s commercial environment will find that the European Union offers a different kind of advantage: predictability and permanence. When a company is established in the EU, it becomes part of a system based on trust, the rule of law and financial credibility. This stability supports business growth and creates a secure foundation for future generations.

A Gateway to New Horizons

For Chinese business owners, an EU company is more than just a registration number: it opens the door to 27 interconnected markets with over 450 million consumers.
It means being able to:

  • trade freely across borders without customs barriers;
  • sell goods and services to clients in every EU country;
  • build relationships with European distributors and suppliers; and
  • operate under one unified regulatory framework.

Having a presence in Europe is about more than just relocating – it’s about becoming part of one of the world’s most sophisticated commercial ecosystems, where credibility and quality are valued as highly as innovation and growth.

There are diverse choices for every strategy.

The European Union does not offer a single model; it offers a spectrum of opportunities.

Some countries, such as Cyprus and Hungary, attract investors with ultra-low tax rates and simplified incorporation procedures. Others, such as Portugal, Greece and Malta, combine business incentives with residency and lifestyle advantages, providing a soft landing for entrepreneurs who are moving with their families.

Meanwhile, innovation-driven jurisdictions such as Estonia, Ireland and the Netherlands provide the ideal environment for digital start-ups and technology enterprises seeking scalability and credibility.

Each of these options reflects a different vision, and with the right guidance, Chinese investors can find a country that truly matches their ambitions.

Beyond Business: Family, security and legacy

Europe’s attraction lies not only in its business potential, but also in the quality of life it offers.
Entrepreneurs who relocate through company establishment or investment gain access to EU-level healthcare, education, and personal security – advantages that extend to their families.

For many Chinese business owners, combining professional success with family well-being is the ultimate goal: growing a business while ensuring a safe and prosperous future for their children.

It’s a long-term investment in business expansion, lifestyle, freedom and legacy.

Why partner with Regulated United Europe (RUE)?

Entering the European market requires more than just enthusiasm; it demands expertise, planning and reliable partners. This is where RUE provides exceptional value.

RUE is a professional corporate advisory firm that specialises in helping Chinese entrepreneurs and investors establish a strong presence across Europe. Our multilingual team understands both European and Chinese business cultures, enabling seamless communication and precise execution.

We assist clients with:

  • Company formation in any EU jurisdiction;
  • Residency and immigration applications;
  • Tax structuring and compliance;
  • VAT/EORI registration;
  • Product certification and CE compliance;
  • Customs and logistics setup.
  • Ongoing accounting, reporting and corporate governance.

Our bespoke packages start from €1,500 (approximately ¥11,700 CNY), with transparent pricing depending on the chosen country, business sector and scope of services.

With RUE’s support, Chinese clients can navigate every stage with confidence – from incorporation and banking to licensing and expansion – while focusing on what truly matters: growing their business.

A Confident Step Toward Europe

The journey from China to Europe is more than just a change of location – it’s a transformative opportunity.
Every company established under the European flag gains credibility, access and longevity. Each family that relocates finds a stable environment in which business and life can both flourish.

At Regulated United Europe, we believe that with the right strategy, professional guidance and legal structure, every Chinese investor can build a successful and sustainable future in the European Union.

Europe is open to you – let us help you take the first step.

FREQUENTLY ASKED QUESTIONS

Countries such as Cyprus, Estonia, and Lithuania offer some of the simplest and fastest company registration processes. In Cyprus, a company can be established in 7–10 days, with English-language documentation and remote registration possible. Estonia allows online incorporation through its e-Residency program, making it an ideal option for digital entrepreneurs.

Yes. Several EU countries, including Portugal, Greece, Malta, and Cyprus, offer residency permits through company formation or investment. For instance, in Portugal, entrepreneurs can apply for a residency permit under the business visa route, while in Cyprus and Malta, company directors and shareholders can obtain residence status based on their active business participation.

The key taxes include corporate income tax, dividend tax, and VAT.

Corporate income tax ranges from 9% in Hungary to 25% in the Netherlands.

Many countries (e.g., Cyprus, Malta, Estonia) provide reduced or deferred taxation for reinvested profits or foreign shareholders.

VAT usually ranges between 18% and 25%, depending on the country.

Professional tax structuring can help significantly reduce the total tax burden for international business owners.

For tech or e-commerce companies, Estonia, Ireland, and the Netherlands are leading choices. Estonia’s e-Residency allows full online management and 0% tax on reinvested profits. Ireland is home to many global tech giants thanks to its 12.5% tax rate and strong IP protection, while the Netherlands offers an Innovation Box regime for reduced tax on technology-related income.

 

Regulated United Europe (RUE) is a professional corporate advisory firm that can fully assist Chinese companies with company formation, VAT / EORI registration, product compliance (CE, labeling, sector standards), customs structuring, accounting, and ongoing reporting.

Our service packages start from €1,500 (approximately ¥11,700 CNY). The final cost depends on the selected country, industry sector, and compliance requirements.

RUE customer support team

CONTACT US

At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 777 256 626
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 6949 5456
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland
Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Regulated United
Europe OÜ

Registration number: 14153440
Anno: 16.11.2016
Phone: +372 56 966 260
Email:  [email protected]
Address: Laeva 2, Tallinn, 10111, Estonia

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