Where to Open Manufacturing in Europe: Taxes, Wages, Incentives
Ukrainian manufacturing companies are increasingly considering relocating operations to European Union countries. The reasons are clear: safety, stability, logistics, and access to new markets. But one of the main drivers is transparent rules of the game — tax burdens, labor costs, and access to financial incentives.
We’ve prepared a brief overview of 6 key countries most often considered by Ukrainian entrepreneurs for relocation. The comparison includes corporate tax rates, labor costs, and available government support for industrial investors.
🇵🇱 Poland
- Corporate tax: 19% (or 9% for companies with revenue up to €2 million)
- Labor cost: ~€12/hour
- Investment incentives: special economic zones, tax exemptions for up to 15 years, real estate benefits
- Plus: proximity to Ukraine, clear legislation, extensive manufacturing integration experience
🇨🇿 Czech Republic
- Corporate tax: 21%
- Labor cost: ~€7/hour
- Investment incentives: tax holidays, job creation grants, training subsidies
- Plus: strong engineering education, robust industrial base
🇷🇴 Romania
- Corporate tax: 16%
- Labor cost: ~€12.5/hour
- Investment incentives: exemption on reinvested profit, state support for large-scale projects
- Plus: active support for foreign businesses, favorable geographic location
🇭🇺 Hungary
- Corporate tax: 9% (lowest in the EU)
- Labor cost: ~€14/hour
- Investment incentives: loans, R&D subsidies, tax relief
- Plus: aggressive industrial attraction strategy, flexible legal framework
🇸🇰 Slovakia
- Corporate tax: 21% (or 15% for microbusinesses)
- Labor cost: ~€17/hour
- Investment incentives: asset acquisition benefits, tax credits, subsidies
- Plus: stable economy, strong EU export position
🇵🇹 Portugal
- Corporate tax: 21% (reduced 17% rate for small companies)
- Labor cost: ~€14.7/hour
- Investment incentives: tax credits up to 35%, real estate tax exemptions
- Plus: excellent logistics, port access, special regional development programs
Conclusions
Poland, Czechia, and Hungary offer the best balance between tax rates and workforce affordability. Slovakia is ideal for those seeking a middle ground between wages and stability. Portugal suits businesses targeting ocean access and logistics to Africa and the Americas. Romania is a good fit for large-scale manufacturing with strong state support potential.
Before making a decision, it’s crucial to perform a full tax and logistics assessment. The GLS Law team can help you select the right jurisdiction based on your business type, growth plans, tax residency, and access to labor.
