12 Best Cities in Europe for Freelancers and Self-Employed Workers (2024)
Remote work has changed the outlook of working professionals worldwide regarding how they approach their working lives. Given the steady technological developments and better communication possibilities, remote work is a viable option for individuals desiring versatility, individualism, and work-life balance.
Many still look beyond their homes and see the benefit of working remotely. European nations have natural beauty, cultural heritage, a vibrant start-up environment, and advanced technological connectivity that would make remote workers thrive.
Incorpuk in this blog outlines the best European cities where you can work as a freelancer and self-employed worker.
What is Freelancing?
Freelancing is independent work coordinated via contract and not by an employer's organisation where an individual works independently. Freelancers do not have taxes and insurance provided by the employer and do not receive holiday sick pay or pension. You can determine when and where to work due to your freedom concerning your working schedule and location.
Some of the most common freelancers are knowledge workers who possess specific skills and can work for clients remotely; these are designers, writers, and programmers. The second type is 'gig-workers' or 'contractors' like the handyman, cleaners, and drivers, who do not depend on the Internet to work.
Advantages of Freelancing
With the number of freelancers rising each year, many see the decision to go freelance as life-changing. Here are some common reasons people resign from their traditional working schedules and become freelancers.
- Flexibility: You can schedule your work hours, place of employment, and overall operation time; copyrightable aspects like working from home, days off, and varying hours.
- Client Choice: You can work with clients you like or with whom you want to work, which means that undesirable working relations are not compulsory.
- Profit Retention: All the profits after taxes go directly to you, that experience the fruits of your sweat and enjoy the fruits of your labour while having authority over the money.
Best Cities in Europe for Freelancers and Self-Employed Workers
Here are the best cities in Europe for freelancers and self-employed.
1. Berlin, Germany
Berlin is a place for start-ups. Many warehouses draw in talented, creative people from all over the world. The general atmosphere of laid-back and artsy mixed with the young crowd is perfect for freelancers – whether you are a writer searching for suitable material or a designer looking for lots of outlets for cooperation.
Apart from its budding start-up scene, which has attracted attention from various parts of the world, the proliferation of Berlin's co-working space has rapidly grown. People and companies occupy Cozy offices rapidly, providing freelancers with inspirational workspaces. Co-working spaces are prevalent in Berlin, meaning you are never far from another creative soul.
The income tax rate for freelancers and digital nomads is 14% for anyone earning between €11,605 and 66,750. In addition, since the standard of living is relatively low for a Western city, Berlin is ideal for freelancers.
2. Prague – Czech Republic
Prague is nicknamed the world's party capital, the capital city of the Czech Republic, and one of the best places for freelancers, entrepreneurs, and other types of working nomads. It is famous for its energetic nightlife, beautiful views, low crime rates, and relatively cheap living costs.
The personal income tax rate for employees in the country is still 15% for every employee who earns less than €80,648 per annum.
Transportation to the rest of Europe is quite good, and there is a hard-working expatriate community, which always makes it easy to make new friends and be comfortable in the location.
3. Bucharest - Romania
The capital city of Romania is lovely and captivates anyone who visits. A wide variety of large roads and elegant high-rise office structures is characteristic of the town, which is in harmony with the appearance of the inhabitants. The old town combines complex, prestigious and warm-hearted restaurants, all reasonably priced.
Furthermore, Bucharest is rapidly becoming South Eastern Europe's creative and entrepreneurial capital with abundant co-working spaces and stylish coffee shops designed for working.
Some people might doubt the changed internet speed, especially those who have to wait or work through fast Wi-Fi, but the city provides an average of 70 Mbps.
4. Sofia – Bulgaria
Bulgaria has exciting places and a buzzing party culture that anyone can afford. The city also has an attractive income tax rate of 10%. This makes Sofia a haven for self-employed workers and freelancers since the tax rates are fixed regardless of income.
This means you will only pay a fixed income tax of 10% as a self-employed worker or freelancer. If you're a non-resident, you will pay taxes on the income you generate from Bulgaria sources.
5. Amsterdam - Netherlands
Amsterdam, widely known as the starting capital of Europe, is famous not only for its active creativity and cultural life but also for developing co-working offices. Many co-working spaces are open, and the city is now home to an active community of entrepreneurs from Europe and beyond.
Amsterdam provides freelancers with excellent life experience with increased environmental consciousness and available and accessible means of transport, including bicycles and the classic tramway.
Among the strengths of Amsterdam, one has to mention a key characteristic of the Dutch, namely the keen on self-employment and self-initiation, which makes the city perfect for freelancers.
The income tax in the Netherlands in 2024 will be 36% to 49.5%, depending on your income status.
6. Luxembourg City - Luxembourg
The Grand Duchy of Luxembourg is one of Europe's most important financial centres, successfully combining the pace of the modern European metropolis with qualities such as recreation and leisure.
Luxembourg and its neighbouring cities, such as Luxembourg City, Dudelange, and Differdange, have a first-rate internet connection, multicultural population, and lively living standards.
The income tax in Luxembourg is progressive and starts at 0% and can go up to 42% depending on the income level; however, no income tax is charged on any amount up to €12,438. The market is highly secure and friendly for business due to stable politics and favourable legal environment, and the quality of life is superb, especially for those earning from outside the city or the country.
7. Tbilisi – Georgia
Tbilisi is one of the most favourable European cities for freelancers. The city is full of visitors, including tourists and digital nomads, and has numerous qualities that enhance their stay.
The income tax rate is 20% on income derived from sources in Georgia, but there is no personal income tax on income derived from clients outside the country. Entrepreneurs can enjoy certain tax exemptions while starting a business in Romania. This includes no income tax on earned money up to €11,000 yearly and 1% tax for companies with an annual turnover of up to €180,000.
Georgia's vibrant and multicultural capital is an entry point to major tourist destinations. It has many types of lodging, ranging from hostels and house-sharing apartments on the budget end of the spectrum to hotels and high-end resorts.
It is also a cultural city with many social activities, such as partying, mouth-watering local foods, and locally grown fruits and vegetables.
8. Barcelona – Spain
Many freelancers visit Barcelona to spend time getting a wonderful life while contributing to the success of their ventures. In addition to the beautiful scenery, grand architecture, and art life, the higher unemployment rate has increased the number of start-ups with the trend of working from-co-working spaces.
As the absorption rate is low in the Spanish corporate world, many locals have explored the business independently, with the cooperation of other groups of thinkers who have come forward and supported each other. Being a member of one of these groups can be a turning point.
Barcelona currently has over 100 co-working spaces, putting it in the running for the assets of the most significant co-working populations globally.
In 2024, Spain's income tax slabs are from 19% to 47%, depending on a person's gross income.
9. Valletta - Malta
Valletta is a dream destination for most freelancers globally. The city has many open-seating cafés, old architecture, beach views, and luxurious living experiences.
You can save a lot at the corporate tax level with a tax rate of 5% after a refund and at the personal income level with a tax rate of 10%. A decent income will always make you live a comfortable lifestyle.
Navigating through and around this country is easy, and the people are friendly and hospitable. In Malta, co-living and co-working real estate is fast-growing due to increased accommodation for remote workers.
10. Limassol - Cyprus
This is another city that offers excellent opportunities to self-employed persons and freelancers.
It is friendly to global digital nomads, with a low corporation income tax of 12.5% and a stable security and peaceful climate. Individual income tax consists of progressive rates, with a special provision whereby no tax is charged on the first €19,500 of earned income.
Limassol has a beautiful seafront, reasonably cheap accommodation and properties, and a progressive multicultural atmosphere due to its multicultural population base. The city is for everyone. One can engage in fun activities, including horseback riding, trail hiking on natural terrains, skiing, and cycling, making it an ideal place for outdoor lovers.
11. Split – Croatia
Split is one of Croatia's largest cities, becoming a home for digital nomads due to its attractive tax rates and lifestyle quality.
You will pay a corporate tax rate of 10%; however, if you go to the country via a nomad visa, you will not pay any taxes. Freelancers can also apply for lump sum taxation, whereby the tax payable is below €1,000 for an income of €40,000.
Split provides several in-country travelling options and contains many co-working points for decent internet connections as people around the globe visit the city. It has gorgeous beaches, a good lifestyle, and numerous tourist attractions.
12. Budva- Montenegro
Budva, Montenegro, has beautiful architecture, stunning beaches, and friendly people, making it perfect for freelancers and self-employed professionals. The city has it all: lavish hotel accommodations, gloss shops, serene escapes, active business districts, and many tourism opportunities.
Living in this Adriatic coastal town is relatively cheap, and acquiring a skilled workforce for firms. This region is also endowed with beautiful images and relatively low criminality. The climate is moderate, which is conducive to the growth of fresh produce, and the country's capital, Podgorica, is in the close vicinity.
Factors to Consider when choosing a Freelance and Self-employed City
Based on the above points, what might be viewed as the ideal city for freelancers? Most cities are suitable for remote work, but if you are a beginner in freelancing, what factors should you consider when choosing your location?
Incorpuk has provided a checklist of considerations depending on the aspects most essential or preferred by clients. Research the city you are interested in and obtain the necessary information, including quality of life, the best coworking spaces, internet speed, and weather.
1. Cost of living
The income and the budget you have determine where you live. Most freelancers like to operate in cheap areas since they enable you to develop your organisation, though the cost of living is additionally low.
Another objective is to consider the lifestyle one has to approximate ongoing expenses. Preferably, select an area wherein you can have your desired mindset without burning a hole in your pocket about rent.
When researching, begin with Numbeo. You can also search Reddit for city-related Subreddits or a freelance Facebook group.
2. Visa regulations
Research visa options for your desirable destination. For example, a 14-day visa may be too restrictive, but a six-month visa could be ideal. Many countries provide the digital nomad visa, which gives one a residency permit of 90 days to a year. Visa policies depend more on the country that issued your passport and the one you are visiting; therefore, confirm them before booking a flight.
3. Reliable internet
When choosing your destination, confirm that there's fast and reliable internet. If the country has poor internet speed, don't go there. You don't want to visit the place and be unable to work.
4. Accommodation availability
Cost, space, and adaptability are the determining factors when selecting a house or an apartment. For freelancer-friendly cities, accommodation in Bucharest, for instance, is relatively easy for a budget-conscious traveller or a luxury seeker.
Some places also provide co-living areas perfect for getting acquainted with a new city and perhaps collaborating with other freelancers.
5. The overall quality of life
Prioritise the quality of life in your favourable destination and whether it meets your expectations. Remember, your priorities might differ from those of other self-employed entrepreneurs. So, if you plan to stay longer, look for what best suits you.
For example, you may value healthy living, and you provided priorities like the presence of gyms and fitness classes, good supermarkets, or markets for fresh produce. Other great sites are based on nearby travel, such as proximity to an airport or the fact that there is much to do nearby. Other factors to consider include climate, health, landscape, nightlife, art, and factors that suit your lifestyle.
6. Where to work from
Working from home is a great opportunity, but meeting new talent will be challenging, resulting in feeling lonely. A city with coworking spaces and Wi-Fi cafés is a huge bonus. Working in such places helps with productivity and focus, and you can also meet great freelancers and make connections.
7. Social life
Regardless of how much you love travelling, you're expected to experience loneliness when living in a foreign country. Therefore, don't neglect your personal health as a freelancer. Focus on friendship and social life as well. It may be easier in certain cities than in others.
Cities with active expat communities are ideal choices since you can make friends if you find it hard to connect with locals. Coworking spaces can also be excellent for connecting purposes in the city. You can also check Facebook events or Facebook groups for non-resident freelancers.
Do You Need Help Forming Your Company in the UK?
Incorpuk offers a range of fast and efficient online company formation services that makes it easiest and cost effective to take your business global. Kindly contact incorpuk if you need any help with company formation services today.
Winding Up
Remote work has changed how professionals handle their careers, with freelancing offering work flexibility and independence. Europe has a rich culture, advanced technology, and a growing start-up environment, which provides suitable cities for freelancers.
Whether you're looking for affordability, vibrant coworking spaces, or quality of life, the above cities stand out for freelancers and self-employed individuals. The factors you must consider before relocating to these cities include cost of living, reliable internet, visa regulations, and social life. Focusing on what matters will help you find a suitable city to thrive as a European freelancer.