Cost Efficiency Through Strategic Location Choices

Cost optimization is one of the most compelling reasons businesses establish multiple corporate structures across different countries. By relocating production, outsourcing services, or setting up operational hubs in cost-efficient regions, businesses can significantly reduce expenses while maintaining quality. Another aspect of across border co-existence for companies is tax optimization. Local programs purposed for investment or trade facilitation by some countries like Türkiye and Hungary , provide favorable tax optimization regimes alongside the competitive power.

Competitive cost strategies via across border co-exitence

Labor Cost Savings

One of the biggest cost-saving advantages comes from labor expenses.

• Germany’s average gross monthly wage: €4,105 (Statista, 2023)

• Hungary’s average gross monthly wage: €1,540 (Eurostat, 2023)

• Turkey’s average gross monthly wage: €840 (Turkish Statistical Institute, 2023)

By moving business functions like logistics, production or IT support operations to Hungary or Turkey, a company can reduce labor costs by up to 80% without compromising on workforce quality.

Lower Taxation Rates

Corporate tax rates vary significantly, providing opportunities for tax optimization.

• Germany: 30–33% corporate tax (PwC, 2023)

• Hungary: 9% corporate tax (lowest in the EU) (KPMG, 2023)

• Turkey: 20% corporate tax, with further incentives in free zones (Turkish Revenue Administration, 2023)

Choosing the right locations for production, services, or operational hubs can dramatically cut costs. By establishing a corporate presence in Hungary or Turkey, businesses can leverage lower wages, reduced tax burdens, and government incentives while still operating within EU and global markets.

References:

• Statista (2023). "Average Wages in Europe." Retrieved from: https://www.statista.com

• KPMG (2023). "Corporate Tax Rates Across the EU." Retrieved from: https://home.kpmg/xx/en/home/services/tax.html