Tax and other incentives for start-ups in some European countries

Abstract

Starting a new business is a very demanding effort. A company should analyze all the aspects of the operations such as marketing, finance, supply chain and human resource management as well as other departments depending on the line of business. Taxation is a subject that all the companies should consider because in almost all business the taxes collected are obligatory payments to a state. The countries in the European Union and Russia have similar tax systems; however, start-ups move from one country to another because of the cost difference. Tax rates and state incentives play a significant role for the new businesses. The main goal of the thesis was to identify the most convenient and least comfortable country to establish a start-up in Europe from the point of tax and other incentives. The aim of the research was to understand how companies use tax benefits and state support. The results are presented by analyzing the information that was found in statistical books and states' articles about tax and legal incentives as well as the interviews conducted with start-ups in different countries of Europe. The results of the thesis can be useful for students who want to start a new business. Furthermore, the findings of the research can help with choosing the right location for founding a new business. However, the information in the thesis cannot be generalized as a reference due to the low response rate yielded.