Find out why investing in London is no longer convenient

Brexit: the reason for the unstable economy

Until 23 June 2016 London was one of the main financial markets in the world, it was considered the best European destination for Foreign Direct Investment (FDI), and an important business “partner” for many countries. It was, furthermore, an indispensable member of the European Free Trade Association (EFTA) as well as the World Trade Association (WTO).

London was a popular destination among young people from all parts of the world that could – until not long ago – easily benefit from the economic development of both companies and investments. Thanks to its tax reduction policy and expenditure cuts, the UK’s capital was the perfect place to start a business.

As previously mentioned, everything began to change on 23 June 2016, when the UK held a referendum on leaving the European Union. UK’s citizens chose to leave the EU, which lead to great political and economic instability and forced companies to move their headquarters to other countries, members of the EU.

According to a study, conducted by Ernest & Young a few months ago, market shares in the UK in 2017 (same as in 2016) marked a decrease. London might remain the first European choice for foreign investments only for a short period since both France and Germany are rapidly growing. Even compared to all members of the EU that in 2017 registered an average increase of 10% of the foreign investments, while the increase in UK was of only 6%.

Choose other countries to invest in

If Brexit did not change your mind, read about few more reasons why to invest in Slovenia or Croatia:

In UK, the profit tax for companies is of 20%. On the other hand, Slovenia’s profit tax is fixed and of 19%, while in Croatia the profit tax can vary from 12% to 18%.

Time necessary to start a company is another advantage: what in London can take up to two weeks, in Slovenia and Croatia is done in two or three working days. Besides, we should take in account also the price for the workforce, which is definitely cheaper in Slovenia and Croatia.

Are you sure you would like to invest in such an economically unstable country as United Kingdom is? Taxofia is glad to have the opportunity to tell you that Croatia and Slovenia are developed and unquestionably more beneficial countries.

If you would like to start a company in Slovenia or Croatia, feel free to write to us on info@taxofia.com