Ukrainian freelancers in Europe: where is the most profitable place to open an IT company in 2025

After the start of the full-scale war, millions of Ukrainians integrated into the European space. A significant part of them are representatives of the IT industry, who have adapted to new realities, started working on a freelance basis or created their companies outside of Ukraine. Europe has become not only a refuge, but also a new start for many specialists. In 2025, Ukrainian IT specialists have a wide choice of options for legalizing their activities, optimizing tax expenses and gaining access to EU markets.

Registration of an IT company in Europe

Estonia is a leader in convenience for digital entrepreneurs. Here you can register an OÜ (an analogue of an LLC) online in less than 24 hours via e-Residency, and the cost of the procedure starts from 265 euros. There is no income tax until the dividends are paid out – ideal for those looking to reinvest. In addition, it is possible to manage the company completely remotely, and bank transactions can be conveniently carried out through Wise or Paysera.

Spain offers favorable conditions for startups thanks to the Startup Law — SL Startup registration takes up to 6 hours, and income tax in the first 4 years is only 15%. The cost of registration is approximately 100 euros. A digital-nomad visa for up to 5 years is also available, ideal for those who want to remain mobile.

Germany is the largest IT services market in the EU. Registration of a UG or GmbH type company takes 1 to 2 weeks and requires notarization. The tax burden here is much higher: 15.825% CIT plus 8-20% sales tax. However, the great opportunities in the market compensate for the difficulties with registration.

Romania offers one of the lowest corporate taxes in Europe – only 1% for companies with an annual income of up to €250,000 (3% from 2025). The minimum capital is symbolic, online registration takes 3-5 days, and the costs are about 100 euros. For many Ukrainian IT specialists, this is one of the most budget-friendly options.

Bulgaria is also attractive with a flat income tax of 10% and low operating costs. An OOD company can be registered in 5-7 days with a capital of only 1 euro. But from 2025, VAT registration is mandatory for companies with a turnover of more than 166,000 leva (≈ 85,000 euros).

Portugal has an interesting system of tax credits for startups, including R&D refunds. The registration of a Lda type company takes place through the “Empresa na Hora” portal, and the costs are approximately 220 euros. Lisbon and Porto have become magnets for IT talent in the EU, thanks in particular to the D8 digital-nomad visa.

Freelance in Europe

For those who do not plan to start a company, but want to work as a freelancer, it is important to consider income taxes, social contributions and access to the labor market.

Portugal has a special “Simplificado” tax regime where only 75% of income is taxed and the effective tax rate is 15-20%. Social contributions — 21.4%. Online registration takes a few minutes. The advantage is the consistently high demand for AI/DevOps, as well as the availability of a special visa for digital nomads.

In Germany, the income tax is progressive — from 14 to 42%, plus about 20% of social contributions (half of which is paid by the employee). At the same time, registration of the status of “Freiberufler” is possible in 1 day. The advantage is a huge IT market, a wide selection of projects and preservation of rights for owners of temporary protection.

In Spain, for digital-nomad-IT-professionals, the tax is 15% on incomes up to 600,000 euros, and social contributions in the first year are about 310 euros per month. Registration takes place through Alta-Autónomo in 24 hours. Cyber ​​security professionals are in high demand, especially in Madrid.

In Romania, the tax rate is 10%, and social contributions are fixed and depend on the minimum wage. Competition for projects is lower, so it is easier to find the first customers. Income up to 24,000 euros allows you to take advantage of the reduced rate of EUV.

In Bulgaria, there is a 10% tax and social contributions of about 27%, but with a limit on maximum deductions. The fintech cluster in Sofia is actively developing, so there is a demand for analysts and backend specialists.

In Poland, the standard PIT rate is 12%, but for IT professionals, the IP Box can be used – only 5% tax on income related to intellectual property. Demand for B2B contracts is very high, and Ukrainians with temporary protection have access to all types of employment.

Practical steps for making a decision

1. Check the validity period of the temporary protection status, because although it has been extended until March 4, 2026, some countries require its renewal already in 2025.
2. Determine the business model: starting a company, self-employment or a hybrid approach.
3. Calculate expenses taking into account taxes, social benefits and the cost of living.
4. Open an IBAN account with Payoneer or Wise for fast payments.
5. Obtain eIDAS-compliant electronic signature required for contracts and reporting.

Comparison of conditions for opening an IT company in Europe (2025)

2025 is a time of decisions for Ukrainian IT specialists in Europe. Each country offers its own advantages: Estonia — for those who seek digital freedom and transparency; Romania and Bulgaria — for those who want to save money; Spain and Portugal — for startups and mobile specialists; Germany and Poland are for those looking for scale and stability.

The main thing is not to focus only on taxes. Consider access to customers, quality of infrastructure, language environment, and your own life goals. And remember: temporary protection provides an opportunity, but your professional strategy is the main tool for survival and development in Europe.