# PERSONAL BRAND MONETIZE — EU VARIANT (Tax & Legal)

> **Region:** European Union 27 member states + UK (post-Brexit)
> **Currency:** EUR (most), GBP (UK), other (DK, SE, PL, etc.)
> **Tax authority:** National tax agencies + EU VAT framework
> **Year covered:** 2025-2026 tax years

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## Country-specific entity choices

Each EU member state has its own legal entities. Below are the most common for solo personal brand operators.

### Germany (DE)

| Entity | Setup cost | Liability | Tax treatment |
|--------|-----------|-----------|---------------|
| **Freiberufler** (liberal profession) | EUR 0-150 | Personal | Einkommensteuer only (no Gewerbesteuer) |
| **Einzelunternehmer** (sole prop) | EUR 30-60 | Personal | Einkommensteuer + Gewerbesteuer |
| **GmbH** (Limited) | EUR 25,000 share capital | Limited | Korperschaftsteuer 15% + Gewerbesteuer 7-17% |
| **UG** (Mini-GmbH) | EUR 1 share capital | Limited | Same as GmbH but build to EUR 25K |

**Top tax rates:** Einkommensteuer max 42% (45% above EUR 277,826), Solidarity surcharge 5.5%, Church tax 8-9% (opt-in)

### France (FR)

| Entity | Setup cost | Liability | Tax treatment |
|--------|-----------|-----------|---------------|
| **Auto-entrepreneur / Micro-entreprise** | EUR 0 | Personal | 22-25% flat on revenue (incl. social charges); revenue cap EUR 77,700 (services) or EUR 188,700 (commerce) |
| **EURL** (single-member LLC) | EUR 100-500 | Limited | IR or IS election |
| **SASU** (single-member SAS) | EUR 100-500 | Limited | IS 15% (under EUR 42,500) / 25% standard; president = salaried |

**Top tax rates:** Impot sur le revenu progressive 0-45%, CSG/CRDS 9.7%, social charges high

### Spain (ES)

| Entity | Setup cost | Liability | Tax treatment |
|--------|-----------|-----------|---------------|
| **Autonomo** (sole prop) | EUR 0-100 | Personal | IRPF progressive + monthly social security EUR 200-590 (income-based 2023-2025 reform) |
| **SL** (Sociedad Limitada) | EUR 3,000 share capital | Limited | IS 25% (15% for new SLs first 2 years) |

**Top tax rates:** IRPF 19-47% + autonomous community surcharges, IS 25%

### Italy (IT)

| Entity | Setup cost | Liability | Tax treatment |
|--------|-----------|-----------|---------------|
| **Partita IVA — Regime Forfettario** | EUR 0 | Personal | 15% flat (5% first 5 years if eligible), revenue cap EUR 85,000 |
| **Partita IVA — Regime Ordinario** | EUR 0-200 | Personal | IRPEF progressive 23-43% |
| **SRL** | EUR 1-10,000 share capital | Limited | IRES 24% + IRAP 3.9% |

### Netherlands (NL)

| Entity | Setup cost | Liability | Tax treatment |
|--------|-----------|-----------|---------------|
| **Eenmanszaak** (sole prop) | EUR 80 (KvK fee) | Personal | Inkomstenbelasting + zelfstandigenaftrek deduction |
| **BV** | EUR 0.01 share capital | Limited | Vennootschapsbelasting 19% (under EUR 200K) / 25.8% |

### United Kingdom (UK, post-Brexit)

| Entity | Setup cost | Liability | Tax treatment |
|--------|-----------|-----------|---------------|
| **Sole Trader** | GBP 0 | Personal | Income tax 20-45% + NIC Class 2/4 |
| **Limited Company (Ltd)** | GBP 12-50 (Companies House) | Limited | Corporation Tax 19-25% + dividend tax on extraction |

**UK rates:** Income tax 20% (basic) / 40% (higher) / 45% (additional); Corporation Tax 19% under GBP 50K, 25% above GBP 250K, marginal 19-25% in between

---

## VAT — EU framework

VAT is harmonized across EU but rates differ. Standard rates 2025:

| Country | Standard | Reduced (digital services) |
|---------|----------|--------------------------|
| Germany | 19% | 7% |
| France | 20% | 5.5%, 10% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
| Netherlands | 21% | 9% |
| Belgium | 21% | 6%, 12% |
| Poland | 23% | 8%, 5% |
| Sweden | 25% | 12%, 6% |
| Denmark | 25% | None (only 25%) |
| Hungary | 27% (EU highest) | 18%, 5% |
| UK | 20% | 5% |

### VAT registration threshold

- Most countries: EUR 25,000-100,000 turnover (varies)
- DE: EUR 22,000 (Kleinunternehmer)
- NL: EUR 20,000 (KOR small business scheme)
- UK: GBP 90,000 (raised April 2024)

### OSS (One-Stop Shop) — selling digital products to EU consumers

For B2C digital services (courses, SaaS, ebooks) sold across EU:
- Register for **OSS** in your home country
- Charge VAT at the **buyer's** country rate (not yours)
- File one quarterly OSS return covering all EU sales

**Example:** German seller charges 19% to German buyers, 25% to Swedish buyers, 23% to Polish buyers, all reported on one OSS return.

### MoR (Merchant of Record) solution

Platforms like Lemon Squeezy, Paddle, Gumroad act as MoR — they handle:
- VAT registration in every EU country
- Charging correct VAT per buyer
- Filing returns
- Compliance

Fee: 5-10% of transaction. Worth it if selling globally and revenue is under ~EUR 500K.

---

## Income tax — country comparison

| Country | Min | Top rate | Notes |
|---------|-----|----------|-------|
| Bulgaria | 10% | 10% (flat) | Lowest in EU |
| Romania | 10% | 10% (flat) | Plus micro-enterprise tax 1-3% for small companies |
| Czechia | 15% | 23% | Plus social/health ~30% |
| Poland | 12% | 32% | Plus social 13.71% (linear) |
| Germany | 14% | 45% | Plus Soli 5.5% + church |
| France | 0% | 45% | Plus CSG/CRDS + social high |
| Spain | 19% | 47% | Plus autonomous community |
| Netherlands | 36.97% | 49.5% | High but social benefits |
| Belgium | 25% | 50% | Among highest |
| Denmark | 8% | 56% | Highest top rate; high benefits |
| Sweden | 32% (incl. municipal) | 52% | Strong public services |
| UK | 20% | 45% | + NIC |

---

## Social security / contributions

EU mandates social security; rates vary:

| Country | Self-employed contribution |
|---------|---------------------------|
| Germany | ~30% (pension + health + unemployment) — voluntary in some categories |
| France | ~45% in classic regime, ~22% in micro-entrepreneur |
| Spain | EUR 200-590/month (income-based 2023-2025) |
| Italy | INPS ~25-26% |
| Netherlands | ~50% mandated insurance (zelfstandige) but more optional |
| UK | NIC Class 2 (GBP 3.45/week) + Class 4 (6-2% above thresholds) |

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## Best country for digital nomad / location-flexible

Personal brand creators with location flexibility often consider these tax-favorable jurisdictions:

| Country | Why |
|---------|-----|
| **Portugal (NHR Programme — ending 2024 but grandfathered)** | Flat 20% for new residents (limited new entrants from 2024) |
| **Cyprus** | 12.5% corporate, non-dom regime, 60-day residency rule |
| **Malta** | 35% corporate but effective 5% with refund mechanism |
| **Bulgaria** | 10% flat income + corporate |
| **Estonia (e-Residency)** | 20% on distributed profits, retained profits untaxed |
| **Romania (micro-enterprise)** | 1-3% on revenue up to EUR 500K |
| **Italy (impatriate regime)** | 70-90% income tax discount for new residents |

> **Warning:** Tax residency is not "where I want to be" — it's where you actually live, where your "centre of vital interests" is, where you spend >183 days. Don't try to game this without a tax lawyer.

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## Cross-border digital service rules

### Selling to EU consumers (B2C)

- VAT charged at buyer's country rate (via OSS)
- Even non-EU sellers must register (e.g. US seller selling to EU buyers) — see Import OSS (IOSS) for goods, OSS for services

### Selling to EU businesses (B2B)

- Reverse charge mechanism: seller charges 0% VAT, buyer accounts for VAT
- Requires buyer's VAT ID (validate at VIES.europa.eu)

### Selling to UK (post-Brexit)

- UK is separate from EU VAT system
- UK threshold GBP 90,000 (April 2024 raise)
- Northern Ireland still in EU VAT for goods (not services)

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## Bookkeeping / accounting requirements

Most EU countries require:
- Annual financial statements (varies by entity)
- Quarterly or monthly VAT returns
- Annual tax filing (PIT or CIT)
- Invoice formatting compliance (EU directive on invoicing)

### Software

- **Most countries:** Holvi, Lexware (DE), QuickBooks, Xero, FreshBooks
- **France-specific:** Tiime, QuickBooks France, Indy
- **Spain-specific:** Sage 50, Holded
- **UK:** Xero, QuickBooks UK, FreeAgent
- **Italy:** TeamSystem, Aruba, FattureInCloud

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## E-invoicing mandates (rapidly evolving)

EU is moving toward mandatory e-invoicing:
- **Italy:** Mandatory since 2019 (SdI system)
- **France:** Phased rollout 2024-2026 (B2B)
- **Germany:** B2B mandate from 2025 (with phases)
- **Spain:** SII real-time reporting; e-invoicing B2B phased 2024-2025
- **Poland:** KSeF mandatory from 2024 (for some), 2025 for all
- **Belgium:** Mandatory by 2026

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## Payment processing in EU

| Processor | Fee | EU-friendly notes |
|-----------|-----|-------------------|
| Stripe | 1.5% + EUR 0.25 (EEA cards), 2.5% + EUR 0.25 (international) | Works EU-wide |
| PayPal | 2.49-3.49% (depends on country) | High familiarity |
| Mollie (NL-based) | 1.8% + EUR 0.25 | EU-native, lower fees |
| Klarna | Varies | Strong in DACH + Nordics |
| Adyen | Custom | Enterprise |
| Lemon Squeezy | 5% + EUR 0.50 | MoR, handles VAT |
| Paddle | 5% + EUR 0.50 | MoR alternative |

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## Anti-patterns (EU personal brand tax)

1. **Not registering for VAT when above threshold** -> back taxes + penalties
2. **Wrong VAT rate per buyer country (no OSS)** -> compliance nightmare
3. **Trying to "be tax resident" of a tax-favorable country without actually living there** -> tax fraud investigation
4. **Mixing personal and business banking** -> bookkeeping disaster + audit risk
5. **Ignoring e-invoicing mandate timelines** -> compliance failure

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## EU-specific checklist (any country)

- [ ] Entity chosen (Auto-entrepreneur / Einzelunternehmer / Autonomo / Sole Trader / etc.)
- [ ] National tax registration completed
- [ ] VAT registration if above threshold OR cross-border B2C digital sales (OSS)
- [ ] Bookkeeping software (country-appropriate)
- [ ] Separate business bank account
- [ ] Social security registration
- [ ] Quarterly or monthly VAT returns scheduled
- [ ] Annual tax filing (PIT or CIT)
- [ ] If selling cross-border B2C: OSS registered
- [ ] If selling B2B: VAT IDs validated (VIES check)
- [ ] E-invoicing compliance for your country's timeline
- [ ] Accountant engaged (highly recommended given EU complexity)

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## References

- EU VAT Directive 2006/112/EC (consolidated)
- EU OSS guidance — European Commission
- VIES VAT number validation: ec.europa.eu/taxation_customs/vies/
- Country tax authorities: BZSt (DE), DGFiP (FR), AEAT (ES), Agenzia delle Entrate (IT), HMRC (UK), Belastingdienst (NL)
- EU Council Directive 2014/55/EU on e-invoicing
- OECD Pillar 2 (Global Minimum Tax) — for entities above EUR 750M revenue (most personal brands not affected)

> **DISCLAIMER:** This is general information, not tax advice. EU tax rules differ significantly by country and personal circumstances. Consult a licensed national tax advisor.

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*EU Variant | Skill 27 (Personal Brand Monetize Global) | v1.0.0*
