Why Expand Your Business to Europe?
Expanding your business to Europe can be a smart decision for many businesses, particularly with the EU’s brilliant cross-border cooperation, free movement and a common currency used across the majority of its member states. This means trading within the EU is effortless, and as many countries in Europe also speak English, business communication is a breeze.
However, as with any expansion, certain difficulties can arise. There can be a lot to remember when tackling a global expansion to Europe, not to mention the different legislation and tax considerations.
Differing Employment Law
Whilst there is some commonality between the EU’s member states, every EU country has its own employment and legislative differences. EU employment law protects the right of employees in EU, member states, including conditions of employment, data protection and collective redundancy. Whilst these laws apply to the whole of the EU, they will operate differently between EU countries because of how they were implemented at a national level.
For European countries outside of the EU, employment laws and legislation can differ even more greatly, therefore, one set of laws cannot be assumed from one country to another and need to be carefully adhered to.
Differing Tax Rules
With Italy’s regional products taxes (IRAP), the Netherlands’ 30% ruling, and France’s annual personal income tax deductions, it can be a real difficulty to maintain compliance across different European countries. That’s why FMP Global are here to help. We have the in-country experience you need to make your payroll and HR management easy.