Top 5 EU Countries to Open an Offline Business in 2026

The choice of country affects the success of an offline business in Europe no less than the idea itself or the start-up capital. Find out what tax rates, registration forms and premises requirements apply in 2026 in Poland, the Czech Republic, Germany, Estonia and Lithuania

Book a consultation with a lawyer and resolve legal issues related to your business abroad with professional support!

GET CONSULTATION

Opening a coffee shop, store, beauty salon or repair shop in Europe is a very real task, and every year thousands of entrepreneurs solve it. But the outcome of such a project rarely depends only on the idea and start-up capital. Much more often, everything is decided by the choice of country - or rather, how carefully this choice was made.

It happens that a company is registered in a few days, and the establishment itself takes months to open due to the search for premises, sanitary inspections, permits or banking bureaucracy. And vice versa: a country with high taxes sometimes turns out to be more profitable simply because it has a larger market, more solvent customers and clearer rules of the game. There is no universal answer to the question of where it is better to start an offline business - for a small coffee shop, some conditions are important, for a beauty salon, others, and for a warehouse or chain of stores, completely different ones.

We collected and verified data as of July 2026 and compared five EU countries according to criteria that really affect offline business: the ability to conduct business with existing status, the complexity of company registration, tax burden, start-up costs, market size, and requirements for premises and qualifications.

The top countries with the lowest taxes in 2026 are here.

Registering a business abroad is just the first step, not a guarantee of stable company operations.

A personal lawyer for business accompanies an entrepreneur at every stage: from choosing an organizational and legal form and taxation system to managing document flow, reporting, and minimizing tax risks. A specialist will also help with notarial support, resolving disputes with counterparties, and obtaining a work visa if the business plans to relocate.

Learn more about the "Personal Lawyer for Business" service and contact a specialist on the Visit World portal.

Poland: The easiest way to test an idea in practice

Poland remains one of the most convenient destinations for the first offline business in the EU. The reason is simple: a low entry threshold, a clear consumer market and an administrative system that does not require years of preparation for the start.

Who can register a business?

Foreigners who have a residence permit that allows entrepreneurial activity can register with CEIDG on the same terms as Polish citizens. For holders of other types of residence permits, the list of available organizational and legal forms may be narrower, so before opening a business, it is worth separately checking what rights a specific document gives.

Legal form and taxes

The simplest form for a small business is JDG, the Polish analogue of a sole proprietorship: registration through CEIDG is free, no authorized capital is required. If partners or higher financial risks are planned, a limited liability company (Sp. z o.o.) with a minimum authorized capital of PLN 5,000 makes sense.

The standard corporate income tax rate is 19%. A preferential rate of 9% can be applied to small taxpayers and new companies whose income does not exceed the equivalent of EUR 2 million; for 2026, this is approximately PLN 8.52 million of income for the previous year and PLN 8.43 million of current income - the thresholds are converted annually to the PLN exchange rate, so it is worth checking the current figures before starting. Ulga na start is also available to start-up entrepreneurs - the opportunity not to pay social contributions for the first six months (health insurance is still paid), and after the end of the benefit, under certain conditions, you can switch to reduced contributions for another 24 months.

What formats work well here?

- cafes, bakeries and small restaurants

- grocery and specialty stores

- beauty salons, hairdressers, barbershops

- ateliers and repair shops

- small production and local brands

The main risk

It is not bureaucracy, but competition: in large Polish cities the density of cafes, beauty salons and small shops is already quite high, so even a convenient location should be supported by clear positioning. Before signing a lease, it makes sense to check who lives and works nearby, whether there are direct competitors within a radius of several blocks, how much it will cost to adapt the premises and what sanitary or professional permits will be required for a particular type of activity.

Visit World services for tourists, migrants, and expats: Insurance | Guides | Legal advice

Czech Republic: Moderate costs for stability and predictability

The Czech Republic is a good fit for those who are already cramped within the framework of the simplest scenario, but who are not yet ready for the scale and bureaucracy of Germany.

Registration and licensing

Here you can work as a self-employed person (OSVČ) or open an s.r.o. company. Most types of activity require a trade license or other permit - the application is submitted to the Trade License Office or through Czech POINT, and according to the standard procedure, an entry in the trade register can be made within five business days after submitting a complete package of documents. The formal minimum authorized capital of an s.r.o. is 1 crown, but this is the legal minimum, not the real start-up budget: much more money will still be needed for rent, repairs, equipment and first purchases.

Taxes

The corporate income tax is 21% - this rate has been in effect since 2024 and will remain in effect in 2026; the statement about 19%, which is still found in old materials, is no longer relevant.

For which businesses is the Czech Republic suitable?

- cafes and small catering establishments

- bakeries and confectioneries

- salons and beauty studios

- repair shops

- local production, warehouses and logistics

- businesses in tourist cities

The convenient location of the country is especially appreciated by those who plan to work not only on the domestic market, but also with customers or suppliers in Germany, Austria, Poland and Slovakia.

What can complicate the start?

Difficulties often relate not to registration itself, but to confirmation of qualifications: for some professions it is necessary to prove education, experience or appoint a responsible representative with the necessary qualifications. Documents in a foreign language often have to be submitted with an official translation into Czech, and the validity of a business permit may depend on the duration of the permitted stay in the country - the right to register a company and the right to stay in the Czech Republic for business purposes are not always the same.

The EU is preparing to launch the digital euro: read what will change for citizens and businesses at the link.

Germany: the largest market for the highest entry price

Germany offers one of the largest and most solvent markets in Europe - premium services, specialized stores, restaurants, manufacturing and B2B services are developing well here. But registering a company itself is only a small part of the start-up process.

Immigration status and registration

Citizens from non-EU countries should first make sure that their residence permit allows for self-employment or entrepreneurial activity: having a registered company in itself does not give the right to live and work in Germany. Business activities are usually registered at the local Gewerbeamt, after which the office passes the data on to the tax, insurance and other authorities. For many types of businesses, membership in a chamber of commerce or a chamber of crafts is mandatory.

UG or GmbH

For small businesses, there are usually two forms to choose from. A UG (haftungsbeschränkt) can be formally established with a share capital of from 1 euro per founder - this is not an innovation for 2026, nor is the online notarial establishment of UG and GmbH available since August 2022. A classic GmbH requires a share capital of 25,000 euros, of which at least 12,500 euros must usually be paid up at the time of establishment.

Taxes

Corporate tax is 15%, but together with the solidarity levy and the local trade tax (Gewerbesteuer), the rate of which depends on the municipality, the total burden on the company in 2026 is approximately 29–33%. It is also worth keeping an eye on the long-term trend: according to the 2025 tax reform, the corporate tax rate will begin to gradually decrease from 2028 - by 1% each year for five years, and by 2032 the government expects a total rate of about 25%. For a business that is planned for several years ahead, this should be taken into account in the financial model now.

What is worth opening?

- specialized medical and care services

- premium salons and beauty services

- repair and technical workshops

- stores with a clear specialization

- small production, franchises, B2B services

Main difficulties

The largest expenses are usually not associated with company registration, but with rent, renovation of premises, staff and compliance with requirements - for a restaurant, for example, sanitary documents, approval of premises, a permit to sell alcohol and compliance with local building codes will be required, and for some craft professions - confirmation of qualifications and entry into the register of the chamber of crafts.

Find out in which countries it is easiest for a foreigner to open a business by following the link.

Estonia: Easy to manage, but not always a convenient physical location

Estonia is often called the easiest EU country to do business in, thanks in part to its e-services and e-Residency program. But for a classic coffee shop, store, or salon, things are not so clear-cut.

What does e-Residency actually provide?

E-Residency provides a digital ID, allows you to register an Estonian company and manage it online, but does not give you the right to move to Estonia, live there, or open a physical location without meeting the usual immigration and local requirements. Therefore, Estonia works best not as a country for your first small coffee shop, but as a base for a hybrid model.

Formats that will work here

- online store with a physical warehouse

- brand selling goods throughout the EU

- chain or franchise

- online service with a small showroom

- company managed remotely by the owner

Capital and taxation

The formal minimum capital contribution of an Estonian OÜ may be 0.01 euros per shareholder, but the company still needs a legal address, a contact person and an accounting department, and company registration does not automatically guarantee the opening of a bank or payment account.

Estonian companies do not pay income tax as long as it remains in business and is reinvested. Tax is levied only at the time of distribution of profits - at a rate of 22/78, i.e. out of 100 euros of distributed profits, the company actually pays 78 euros in dividends and pays 22 as tax. It is worth noting that at the end of 2025, Estonia canceled the planned increase of this rate to 24%, so in 2026 it will remain at 22/78 - despite the fact that in some materials you can still come across the figure of 24%. However, the standard VAT rate has indeed increased and in 2026 it will be 24%.

The main limitation

Estonia's domestic market is small, so a business that depends exclusively on the flow of local visitors needs a very precise location and a clear understanding of the target audience.

The ranking of countries with the highest taxes for business is here.

Lithuania: an underrated but digitally convenient option

Lithuania is less likely to be included in popular selections than Poland or Germany, although it can be an interesting option for small businesses, logistics, manufacturing and trade.

Registration

A company can be registered here completely electronically, and if all the documents are available, the procedure takes a few working days. Registration requires a Lithuanian legal address and a company manager.

Taxes in 2026

From 2026, updated rates will apply in Lithuania: the standard corporate tax has increased from 16% to 17%, and the preferential rate for small companies has increased from 6% to 7%. At the same time, the preferential 0% for newly established small companies is now valid not for one, but for the first two years of operation, which gives startups more time to turn a profit. The standard VAT rate in the country is 21%.

What businesses is Lithuania suitable for

- logistics and transport

- small production and warehouses

- cafes and catering

- beauty salons

- specialty stores

- companies focused on the Baltics and Scandinavia

Market and competition

The domestic market here is smaller than in Poland or Germany, but competition in many niches is lower, and digital administrative services significantly reduce the time spent on bureaucracy. Before starting, it is still worth checking the requirements for a specific company form, premises and licenses separately: quickly registering a business does not mean that a physical point can be opened for customers immediately.

How do these five countries compare to each other?

If we boil it down to a simple summary, the picture is as follows. Poland is best suited for a first opening – a coffee shop, a shop, a salon or a workshop – mainly due to the relatively easy start-up, and the main risk here is high competition in large cities. The Czech Republic balances costs and stability well, is suitable for local services, gastronomy and manufacturing, and the main challenge is licenses and qualification confirmation. Germany opens access to the largest solvent market for premium services, manufacturing and B2B, but requires high start-up costs and readiness for bureaucracy. Estonia is convenient for remote company management, hybrid business and online sales, but its main limitation is a small local market. Lithuania attracts with digital registration and moderate taxes for logistics, trade and small businesses, although domestic demand is limited here.

For a first small business with a limited budget, Poland and the Czech Republic remain more practical options - it is easier to test the format there and gradually enter the wider local market. Germany has the greatest potential for scaling, but requires a much larger budget and patience. Lithuania can become a successful base for logistics or trade in the Baltic region, and Estonia should be chosen primarily when the physical point is only part of the business, and the main sales and management are carried out online.

What to check before signing a lease agreement?

The most common mistake of entrepreneurs is to first rent a space that you like, and only then find out whether it can be legally used as a cafe, salon or shop. Before paying a deposit, you should have answers to at least five questions:

- Does your current residence status allow you to conduct self-employed or entrepreneurial activities?

- Can you officially use the space for the chosen type of business?

- What permits and qualification confirmations will be required for this activity?

- How much will repairs, equipment, insurance, and utilities really cost?

- What is the monthly revenue needed to cover rent, salaries, taxes, and fees?

For restaurants, salons, and manufacturing, it’s worth checking sanitary, fire, building, and environmental requirements—they vary significantly not only between countries, but also between cities within the same country.

The key is not to choose a country based solely on the tax rate

Choosing a country based solely on the tax rate or speed of registration is a common but risky strategy. For offline businesses, the real demand in a specific location, the availability of suitable premises, the cost of personnel, local permits, and the owner’s right to personally manage the business are much more important. Tax rates and startup costs are important, but only part of the equation; the second and no less important part is how well the business model fits the market of a particular city or region.

Each of the five countries in this review has its own logic of registration, taxation and licensing - and what worked for a coffee shop in Poland may not be enough for a beauty salon in Germany or a workshop in the Czech Republic. Questions such as whether a specific residence status allows you to conduct business, whether you need to prove your qualifications for your chosen profession, or what sanitary and building regulations apply in a particular municipality are best resolved before signing a lease, not after.

A personal business lawyer will help you sort out these details: check which organizational and legal form to choose for a specific country and type of activity, prepare documents for registration and licensing, and if necessary - accompany the relocation of the company abroad. This is especially valuable when the business enters several markets at once or the owner needs to independently manage the process from afar.

Get advice and start your business abroad with a reliable assistant!

Recall! In some EU countries, almost all key government services are available online, while in others even a simple procedure still requires a personal visit. The eGovernment Benchmark 2026 rating shows where it is most convenient to issue documents, use government portals and conduct business remotely. We have already talked about the EU's digital leaders and countries where bureaucracy remains mostly offline.

Photo - generated by Gemini

Products from Visit World for a comfortable trip:

Travel guide for 200 countries;

Legal advice from a local specialist on visa and migration issues;

Travel insurance around the world (please select the country of interest and citizenship to receive services);

Medical insurance all over the world.

We monitor the accuracy and relevance of our information, so if you notice any errors or inconsistencies, please contact our hotline.