US companies entering the EU: Lithuania vs Ireland vs Estonia

When a US company plans its first EU base, three smaller countries often come up: Ireland, Estonia and Lithuania. Each has a real case, and each suits a different kind of company. This guide compares them fairly on tax, setting up, hiring and costs, using official sources. It is general information, not tax or legal advice: the right choice depends on your business, and you should take professional advice in both the US and the EU.

Three different propositions

In short:

• Ireland is an English-speaking EU country known for its 12.5% corporation tax rate on trading income. The Department of Finance estimates that around 1,600 multinational groups with a presence there come within the scope of the global minimum tax.
• Estonia is known for its digital government and a tax system that does not tax profits until they are distributed. Its e-Residency programme lets founders set up and run a company online.
• Lithuania offers a lower cost base, fast company registration and a growing tech scene, with access to markets further east, including Central Asia.

None of these is the “best” country in general. The useful question is which fits your customers, your team and your growth plan.

Corporate tax at a glance

Ireland. Revenue sets two rates of corporation tax: 12.5% for trading income and 25% for certain other income, such as non-trading income. The Department of Finance notes that the 12.5% rate has applied since 2003. Under the OECD global minimum tax agreement, groups with global turnover of over €750 million in at least two of the preceding four years pay an effective 15%. The Department says over 99% of companies operating in Ireland are outside that scope.

Estonia. According to Invest in Estonia, resident companies and branches pay 0% income tax on retained and reinvested profits, and 22% on distributed profits, whether actual or deemed. The tax period is monthly.

Lithuania. Invest Lithuania gives a standard corporate tax rate of 17% for 2026, a reduced 7% rate for small companies that meet certain conditions, and 22% for credit institutions. It also mentions a 0% rate for 20 years for qualifying large-scale projects under its Investment Highway initiative. The standard withholding tax on dividends paid to non-residents is 17%, which can be reduced under tax treaties.

Headline rates are only the start. Where profits are taxed depends on where the work is done, where decisions are made and how your group is structured. Estonia’s own e-Residency programme warns that setting up an Estonian company does not exempt it from tax elsewhere: another country may treat the company as tax resident, for example through a permanent establishment or where it is effectively managed. The same caution applies to any EU base. A US company with staff or managers in Europe needs proper transfer pricing and tax advice.

Setting up and running the company

All three countries let you set up a company relatively quickly:

• Lithuania. Invest Lithuania says company registration is often completed in a matter of days. The private limited company (UAB) is the most common form, and you register for VAT once turnover exceeds €45,000.
• Estonia. e-Residency lets non-residents register and manage an Estonian company online. That is convenient, but it is a digital identity, not a residence right, and the company still needs real substance if it is to be taxed only in Estonia.
• Ireland. Setting up is a familiar process for international groups. Check the official Irish company registration guidance for current steps and timings.

Hiring and moving people

You will probably need some mix of local hires and people who relocate.

Social costs. Invest Lithuania gives employer social security contributions of 1.77% of gross salary, with employees contributing 19.5%. Invest in Estonia gives a social tax rate of 33%, plus unemployment insurance tax on gross salary. Ireland has its own system of employer contributions. Compare total employment cost, not tax rates alone.

Bringing in non-EU staff. Each country has its own permits. In Ireland, the Critical Skills Employment Permit covers occupations in short supply, with minimum pay of €40,904 for listed occupations (with a relevant degree) or €68,911 for most others. The Irish Department of Enterprise, Tourism and Employment notes a rule that is easy to miss: a permit will not be granted unless at least 50% of the firm’s employees are EEA nationals, although this can be waived for start-ups within two years of set-up that are supported by Enterprise Ireland or IDA Ireland.

Lithuania and Estonia each have their own work permit and startup routes, and Invest Lithuania points non-EU founders to the Startup Visa Lithuania programme. Check the rules for each role with the authorities or a qualified immigration lawyer.

Costs

Eurostat’s price level index compares the cost of the same household goods and services across the EU, with the average set at 100. For 2025, Eurostat puts Ireland at 136.2, Estonia at 101.2 and Lithuania at 82.8.

This measures consumer prices, not salaries or office rents, but it reflects the wider cost of living that shapes pay expectations. Ireland sits well above the EU average, Estonia close to it and Lithuania well below it.

Which fits when

Some broad patterns, not rules:

• Ireland often suits larger US groups that want an English-speaking base with long experience of multinational companies, and that can absorb higher costs.
• Estonia often suits digital, location-independent companies, especially early-stage ones that plan to reinvest profits.
• Lithuania often suits companies that want a lean EU base with lower running costs, a skilled tech workforce, and a route towards Central and Eastern Europe and Central Asia.

Many companies end up with more than one presence over time. The first base is a starting point, not a final decision.

How Mavericks Go helps

Mavericks Go takes companies into new markets: a market briefing and entry plan, introductions to local distributors, buyers and counterparts through Mavericks Connect, trade missions, a presence at the Mavericks editions, and support after you land. Legal and tax work is handled by regulated partner firms, and every Go deal is screened against EU sanctions.