Invest into Europe

The European Union (EU) is a massive trading block of 27 separate countries united with a common customs code and harmonised VAT rules.  The EU is a market of 450 million consumers with growing spending power, a phenomena global businesses cannot afford to ignore.

The EU enshrines certain basic principles condusive to cross-border trade – freedom of establishment and free movement of people, goods and capital across internal borders.  There are certain types of legal entities which are recognised across the EU and can be used for conducting business with other EU entities.  EU citizens have the right to freely move between member states and to work in various member countries without work visas.  Non-EU visitors having Schengen visas can also travel between Schengen visa countries without applying for separate visas each time.  There are no customs checks at borders on goods moving between the EU member states.  This is known as the “Single Market”.  EU Directives ensure certain financial services benefit from “passports” so that capital can move freely between borders.

Europe is still a complex market of different languages, rules, customer behaviour and trade practices.  Non-European businesses entering this interesting and lucrative market need to be aware of the challenges and the opportunities available.  RKG Consulting will be pleased to advise North American, Asian and other non-EU groups how to enter the European business arena effectively and safely to accomplish their objectives.

  • Entering Europe for business

    Non-EU businesses will have different reasons for wanting to enter Europe for business.  Some organisations will want to acquire a European business or set-up their own operations in Europe from scratch.  Some organisations will not require such a definite long term presence but may merely want to come to service EU customers under existing or new commercial contracts.  [...]

  • EU Regional Holding Company

    The non-EU group can set-up a “Regional Holding Company” (RHC) in Europe.  This RHC can incorporate a number of operating subsidiaries in other EU countries. Under the EU Parent Subsidiary directive, there will not be any withholding tax when dividends are paid by the operating subsidiaries to the RHC.  The RHC should be located in a [...]

  • Types of EU VAT transactions

    The EU classifies the transactions in respect of goods into the following categories for VAT purposes: 1. Importations: when goods are imported into an EU country from a country outside the community. 2. Exports: when goods are shipped, within a certain time period from the date of sale, to a country outside the EU. 3. Acquisitions: when a VAT-registered person or [...]

  • Foreign profits exemption for UK holding companies

    Under the new exemption regime for foreign profits, all dividends and distributions by UK resident and overseas companies to a UK holding company will be exempt if they fall into the following categories: Distributions from controlled companies; Distributions in respect of non-redeemable ordinary shares; Distributions in respect of portfolio holdings; Dividends derived from transactions not designed to reduce tax; [...]

  • EU parent – subsidiary Directive

    Introduction On 22 December 2003, the Council adopted Directive 2003/123/EC to broaden the scope and improve the operation of the Council Directive 90/435/EEC (“the 1990 Directive”) on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States. The 1990 Directive was designed to eliminate tax obstacles in the area of [...]

  • EU Merger Directive: cross-border re-organisations

    Taxation of restructuring operations in the European Union A common system of taxation applicable to cross-border reorganisations of companies in the EU was put in place in 1992 and improved in 2006. It aims at removing fiscal obstacles to those operations.  The main objectives of the Merger Directive On 23 July 1990 the Council adopted Directive 90/434/EEC on a common system [...]

  • EU Corporate Income Tax rates

    Figures published by the European Commission show that up to 2009 the EU average Corporate Income Tax (CIT) rate of 23.5% was significantly lower than both the BRIC (Brazil, Russia, India, China) average as well as that of the OECD 6 (Australia, Canada, Switzerland, Japan, Norway and United States).  The EU has significantly reduced its CIT rates over a [...]