countrycomparison

Comparison summary: Founding a company

Country Taxes Permits

Austria - The corporation tax is 25 % but this duty has to be at

least € 1,750 per year.

- Capital Returns Tax:

For the profit which goes to the associates the business

has to pay duty about 25 % as

capital.

- Sales Tax:

The sales tax accounts for 10 %, if somebody wants to

stay in a hotel, another 10 %

For passengers transport. The international flights are

always duty free

- business license

- After that you have to register your trade

- Registry in the commercial register

- Minimum share of a company with limited

liability = 35,000 €

France Direct taxes:

-depend on the turnover, the location of the company, and

the number of employees.

Indirect taxes:

“Normal” VAT rate is 19,6% and the reduced rate is 5,5

%

Germany “Normal” VAT rate is 19 % and the reduced rate is 7 %

Requirements and responsibilities:

- personal requirements

- Compulsory registration

- Business related qualifications

Holland The VAT in the Netherlands is 6% or 19% for a luxury

product

- You don’t need an education to start a

company

- The environmental permit are 25 permits

together in one permit

- Writing a business plan is not required,

but writing a business plan is very advisable.


Italy - There are no taxes for selling products in Travel

Agencies.

- Direct taxes:

personal income tax (IRPEF): applied to revenues of sole

proprietorships(43%);

corporate income tax (IRES): applied to revenues of

business corporations(27%);

Italian regional tax on productive activities (IRAP):

applied to sole proprietorships, partnerships and business

corporations (3.9% ).

- Indirect Taxes:

VAT-rate is 21 %

- The founder has to submit the D.I.A. to the

“Province of Pisa”, our District Authority.

The D.I.A. is a document stating that the person has

all the professional and personal qualifications and

requirements to set it up and the premises chosen

have all necessary requirements, as well.

- As a qualification it is compulsory for a Travel

Agency to have a Technical Director.

- It is not compulsory to have a business plan.

Slovakia - Corporate income tax is paid at a flat rate of 19 %

- VAT rate is 20%

Two stages:

- establishment: documents required are:

1. Memorandum of Association

2. Articles of Association

Afterwards you have to make an application for trade

licences, tax registration and health insurance and for

a travel agency you need a graduation certificate

from the University

- Incorporation:

Registration at the Commercial Registry plus

registration for pension, sickness and unemployment

insurance

- Business plan is not necessary

Spain - On anything purchased in travel agencies, customers

pay VAT at the rate of 8%.

- Opening Permit.

- Travel Agency License

- Qualification

There is no special qualification to obtain a license

- It is not necessary to present officially a business

plan.


Turkey - no tax for foreigners if the invoice is addressed to

abroad

- VAT and Private Consumption Tax

- 8% tax for accommodation, 18 % tax for transportation

and 185 for alcohol consumption

This are the procedures the company has to get:

1. Make a petition to Culture and Tourism Ministry

with a name certification of the company.

2.The person has to apply to TÜRSAB in 30 days

after the approval with the seven documents in order

to have a Travel Agency Business Licence.

3. Notary Procedures

4. Trade Register Procedures

5. Tax Administration Procedures

6. Chamber of Commerce and Industry Procedures

7. Municipality Procedures

The owner has to:

- Has to be over 18 years old.

- Mustn’t be arrested because of infamous crime or

fraudulent bankruptcy,

- Has to have the efficiency of being a businessman

- Mustn’t be fined for the 30th law clause

Time for getting the permits: 35 days

Costs for the permits: approx. 1.500.- € and the club

money to TÜRSAB 12615.- €

- Business plan is necessary


country Finance Running costs Rights for employees

Austria Business loans have an interest rate of 3 %.

If you need support, first you will get advice

from a bank, for example. Also, you get 2 %

subsidy on interest for loans or investments.

For business formation you get 25 % of start

- up cost at one point. The bottom line is €

1,000 - and maximum € 20,000.

- Initial capital for companies

The primary deposit of a company is €

35,000.

Average income of a qualified travel

agency worker: € 1,742 gross per

month (approx. € 1,450 net).

The average starting salary is € 1,420

up to € 1,690 gross per month.

Regular costs for employers

- Staff (salaries of employee)

- Taxes (Wage tax)

- Insurances (casualty insurance

health insurance, social security,

damage insurance)

The corporation tax is 25 % but at

least € 1,750 per year.

Capital Returns Tax:

For the profit which goes to the

associates the business has to pay

duty about 25 % as capital.

Income tax:

The income tax varies from € 0 to €

11,000 0%. From € 11,000,

to € 25,000, the income tax is about

20 %. From € 25,000 to € 60,000,the

tax accounts to about 30 %. Above €

60,000,it is 50 %.

Sales Tax:

The sales tax accounts for 10 %, if

somebody wants to stay in a hotel,

another 10 % for passengers transport.

The international flights are always

duty free.

Working Hours

The working hours include the

working time without breaks.

The daily working time mustn’t be

more than 8 hours and the weekly

working time mustn’t

be more than 40 hours.

During the daily a weekly working

time the employer doesn’t include

overtime

Holiday entitlement

- If the length of service in

company is 25 years you ha

ve a holiday entitlement of

about 30 workdays

If you have worked in a company

longer than 25 years, you have a

holiday entitlement of about 36

days.

But if you have worked in a

company under 6 months, you

have a holiday

entitlement of about 2 days per

month


France - Banking Loan to Firms (Prêt Bancaire aux

Entreprises in French). This loan is given to

companies which their turnover does not

exceed 80 millions €. It can finance 70 % of

an investment and the borrower has from 5

to 12 years to pay back. The interest rate is

fixed by the bank.

- Loan to Company Creation (Prêt à la

Création d’Entreprise in French). This loan

is given to firms in creation, created or taken

back for less than 3 years, with less than 10

employees and which haven’t got another

loan. It must be associed with a bank loan

between 2000 € and 7000 €, payed back in

more than 2 years. The Loan to Company

Creation has the same interest rate as the

bank loan and the borrower has to pay the

loan back in 54 monthly payments (5 years).

- Employees costs

The salary of the 3 administrative

officers: from 1100€ to 1800€ per

month

- The book keeping: approximately

1750€

- The agency’s director: from

2270€ to 3180€ per month

- The team leader: 1400€

Taxes

45% of the agency’s turnover goes

to the taxes

Rent:

the price of a commercial premise

is 66€ per square meter per year,

before tax.

Advertising:

for the launching of the agency:

2000-3000€

for the running : 2000€ per year

Fixed term contract

- a contract of employment which:

- has a definite start and end date,

or terminates automatically when a

particular task is completed, or

- terminates after a specific event

Long term contract

contract to perform work for

another over an extended period of

time.

Working time:

If an employee works over 35

hours per week, he does extra

hours.

Paid Leave

Employees have got paid leave, if

they have worked for the same

employer about ten days. Each

month of work gives two days and

a half paid leave. During the paid

leave :

- the employer gives some money

according to the period of paid

leave.

- If the employees become sick,

they can’t extend their paid leave.

-If during the paid leave, there is a

bank holiday, he can extend his

paid leave of one day.


Germany - private costumer credits

- secured credit :

1 – 4 years 2,42 %

5 years 2,63 %

10 years 3,04 %

commercial credits until 4 years = 3,05 %

Tax:

Depending on the type of enterprise:

business tax , corporate tax or income tax

Capitale necessary depends also on the

type of enterprise, but it is not more than

25.000 Euro

Costs for employee:

Gross payment per month 2750

Euro.

Tax:

406 Euro per month

Insurance:

Health insurance: 15,5 %

(employee´s contribution 8,2%,

employer´s contribution 7,3 %)

Rent:

620€ bei 69m³in the city of

Stuttgart

During the probationary period the

employer and employee are

allowed to fire or to quit without

reason.

Probationary period

1 till 6 months

After the probationary period:

- in mutual agreement

- for a good cause (for example:

allergies)

Cancelation period (until ending of

the calendar week), depending on

the period of the employer-

employee relationship between 1

month and 7 months

Holland Base rate for a business loan is 4.5%

Maximum grants from the government,

50,000 euros and credit counseling for a new

business

Required an initial capital for starting

businesses is 18,000 euros.

The taxes in Holland are in these

boxes

0 to 18.945 Euro 33.10%tax

18.945 to 33.863 € 41.95% tax

33.863 to 56.491 € 42.00% tax

56.491 -... . .. € 52.00% Tax

Cost insurance / pension for a new

employee is about 30% of gross

wages

Costs for renting business premises

are 144-136 euro for a square meter.

Cost to advertise in magazines

ranging between 1,000 and 10,000 for

a page in color. A radio spot of 25

seconds costs between 250 and 1,000

euros

Every employee has the right to

get a number of vacation days

Normally it is between the 23 and

25 days(5 workdays times 4 +

holidays like Christmas, New Year

and Easter

Every employee has the right of

wage payment by illness

Employees can ask to work less or

more hours. Employers can only

refuse this when there is not

enough or too much staff


Italy - The average interest rate is high and it is

about 7% or 8%.

- The rules to get subsidies differ from

region to region and from province to

province. In order to get funds from the

government the people who want to set up a

Travel Agency have to apply to the Regional

or the District Authority.

- The capital necessary to set up a Travel

Agency is generally from 8.000 € to 10.000

€, but it depends on the type, the size and the

location of the agency.

Costs for employee (1 high-trained

person):

The costs for a high- trained person is

1,560 € according to the Collective

Labour Agreement for the Tourism

Sector.

The average income of a Tourism

Sector employee is about 1,200 €.

Tax:

the rate that the employer has to pay

is about 33%.

The employee pays a rate of 9% taken

from his salary and paid by the

employer to the INPS (the National

Institute of Social Security).

Insurance:

in case of accidents, diseases,

invalidity, old age, and involuntary

unemployment.

Employers pay two-thirds of

contributions while employees pay

the remaining third.

Rent:

about 18 € a month (per m²).

Advertising:

Two options for Internet:

-Standard web page: 450 per year

Plus hosting fee 168 Euro

-

Advertisement

The price for an advertisement in a

magazine ranges from 30 to 100 €.

Fixed/Unlimited Contracts

Employment contracts can be executed

for a fixed-term or for an indefinite period

of time.

Trial Period

During this period each party is free to

terminate the contract without notice and

without the payment of any indemnity

(maximum duration being 6 months).

Working Time

Averagely, 8 working hours per day are

established.

Holidays & Vacation

In Italy there are 11 religious and national

holiday days.

Employees are entitled to an annual

vacation period of 4 weeks.

Fire:

Under the Italian Law an employee is

dismissible for:

1) Just Cause :

a serious breach by the employee of

his/her duties or other behaviour that

makes continuation of the working

relationship unfeasible;

2) Justified Grounds:

failure to follow important instructions

given by the management,

low performance

3)An objective reason,

whereby the employer needs to re-

organise production or labour force.


Slowakia - Interest for business loans - between 4,6

% and 8 %

- Funding from government

People who are unemployed last 3 months

can get maximum 3700€ for starting own

business. It is necessary to have a business

plan and present it to the professional board.

Costs per employee ( 1 high

trained person)

- Income average 765 € brutto

- Tax 19%

Minimal wages – 327 €

Insurance - both employers and

employees are subject to social

security taxes on an employee's

gross monthly pay. The rates are

35.2% for employers and 13.4%

for employees. However,

contributions are capped at a

maximum of 825.41€ for

employers and 308.04 € for

employees per month

Rent:

- An office per m2 around 10€

Advertising costs

Monthly: Billboard ca 200€

Journal, newspaper - 23€/ 1 cm2

Employment is based on a written

employment contract between the

employer and employee, which

may be concluded for a fixed or

indefinite period.

It is also possible to agree other

terms in an employment contract,

such as material benefits or a trial

period. A trial period may last up

to three months and may not be

extended.

An employment contract may be

terminated by agreement, by the

serving of notice, by immediate

notice or by termination during a

trial period.

Employee can work up to 40 hours

a week. Employees working a two-

shift system may work up to 38 ¾

works a week. Employees working

a three-shift system or who are

involved in uninterrupted work

may work up to 37 ½ hours a

week.

The minimum basic holiday

allowance is four weeks.


Spain

Loans: interest can be from 9% to 12%

approximately, depending on the loan rates

and the repayment schedule.

- Loans to young businessmen have been

offered by the Ministry of Industry, Energy

and Tourism (ICO). The aim is to encourage

young people to start their own company

and give them better access to credit.

Average salary:

Basic wage is 1.220,24 € * 16

payments for a worker with civil

responsibility at level 2, i.e. a

manager of a branch, main

office…

- Tax:

The employer must deduct a

percentage of the employee´s

salary for tax purposes and pay it

into the local Inland Revenue

office account according to the

following (between 24,75% and 52

%)

- Insurance:

Travel agencies should subscribe

to an insurance against workers´

invalidity or death insurance of

27.000 €

- Rent

the average price is 18 €/m2

Advertising:

Different kind of costs depending

on the advertisement

The employee will be offered an

indefinite contract to promote

employment and to allow us apply

for subsidies to pay the National

Insurance contributions.

- In case of a worker´s dismissal

the company must pay the worker

20 days’ pay for each working

year calculated proportionally with

respect to those who have been

employed for less than a year.

Turkey Interest for business loans: 1,39%

minimum loan 1500.-€ maximum loan

21.600.-€

- Subsidies

There is not any subsidy for Travel

Agencies. Subsidies are mostly for hotels,

Costs per employee ( 1 high

trained person)

Income average 1082.- €

1082.- € net gain per month means

gross salary is about 1640.- €

That means 19680.- € a year gross

Employer and the employee make a

contract.

All employees must have a Social

Security Insuarance.

All employees have the right to take

medical service.

Private medical insuarance can be


holiday villages and holiday resorts.

Capital necessary for founding the company:

28025.- €

salary plus 4212.- € a year

insurance.

-Cost to rent an office( per m2)

The average cost to rent an office

is 50,- €

Advertising Costs

Internet: costs per click 0,20 Euro

per click

Newspaper: 1 line /cm is 35.- €

done by the employer if necessary.

Employer has to set up good working

conditions for employees.

Employer gives bonus, if it is agreed

on the contract.

Annual pay vacation.

Employer decides the date of

holidays.

Employee can not go on a holiday

before completion of 1 year.

After completion of 1 year employee

can go on a holiday for 2 weeks.





If the employee takes sick leave for a

couple of days it cannot be deducted

from annual pay vacation.

Fire

If employee has worked for 6 months,

he has to inform employer 2 weeks

before.

If employee has worked between 6

months and 1,5 year, he has to inform

the employee 4 weeks before.

If employee has worked between 1,5

year and 3 years, he has to inform the

employee 6 weeks before.

If employee has worked 3 or more

than 3 years, he has to inform the

employee 8 weeks before.

If employee quits the job before 1

year at work, he has no right to ask

for severance pay.