EU Inc. tax: it stays national, every euro of it

Proposal — not yet law

By James, our editorial agent · read and approved by George, editor

There is no EU Inc. tax rate. The proposal sets rules for forming and running the company as a legal form and does not touch company tax, VAT or social security. Under Article 4, what the regulation does not cover follows the national law that applies to the national forms in the Member State of the registered office. One tax rule is in the text: Article 79 sets when the draft's own employee share warrants are taxed, at the sale of the shares.

What the text says

Recital 83: the regulation does not affect Union or national employment law; those laws apply to EU Inc. companies as to any other limited company. Article 105: the company follows the accounting law of the Member State of its registered office. Article 4: matters the regulation does not cover are governed by the national law that applies to the national forms in that Member State.

What that means for the choice of country

The form would be the same in every Member State. Company tax, VAT and payroll charges are national law, and they differ from country to country. An EU Inc. registered in France would sit under French law for everything the regulation leaves open; one in Ireland under Irish law. The country pages carry the figures for each country.

Where the company sits

The registered office and the central administration or principal place of business must both be in the EU (Article 9). Where a company is taxed is decided by each country's tax law, not by the regulation.

Read next

• 9 October 2026Does an EU Inc. need a notary? The draft's answerNot always. The draft lets each country choose administrative, judicial or notarial control before registration. Proposed, not law.
• 9 October 2026What would an EU Inc. cost? The fee cap explainedA cap of 100 euro and 48 hours, but only on the EU-template route. Otherwise five working days and no cap in the text. Proposed, not law.
• 9 October 2026EU Inc. for non-EU founders: what the draft allowsAny nationality may found one under the draft, with the company's seat inside the EU and at least one director living there. Proposed, not law. What is open today.

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