Businesses expanding across Central and Eastern Europe (CEE) are navigating an evolving landscape of tax regulations, immigration policies, and workforce shifts. For employers, this means tackling complex compliance requirements while ensuring seamless cross-border mobility for their teams. With each country in the region having its own regulatory framework, understanding local nuances is essential to taking steps to avoid risks and unlock growth opportunities. This requires employers to navigate a complex landscape—but those who proactively manage these challenges can turn them into a strategic advantage and gain a competitive edge.
Rising labor costs, fluctuating compliance requirements, and a competitive talent market add further complexity. The digital transformation and increasing adoption of remote work require companies to stay informed about local laws and best practices. Moreover, as governments across CEE continue to refine their labor and tax policies to foster economic growth, businesses must proactively adjust their strategies to remain compliant and competitive.
In a recent webinar, Vialto experts from nine key markets—Bulgaria, Czech Republic, Greece, Hungary, Kazakhstan, Poland, Romania, Slovakia, and Turkey—explored these regulatory changes and how businesses can adapt.
Managing rising labor costs and evolving compliance rules: As labor costs increase and regulations become more complex, businesses must refine workforce planning and compliance strategies. Failure to adapt can lead to financial strain and regulatory risks, while proactive management can ensure cost efficiency and operational stability.
Leveraging tax incentives to attract talent: CEE countries like the Czech Republic and Greece are introducing tax breaks and digital nomad visas to draw skilled professionals. For businesses, this creates both opportunities and challenges—companies that optimize their hiring strategies to leverage these incentives can secure top talent, while those that don’t risk losing out in an increasingly competitive labor market.
Addressing labor shortages through migration policies: New labor migration programs and visa framework revisions aim to fill critical skills gaps. Businesses that stay ahead of these policy changes can tap into new talent pools, whereas those that lag behind may struggle with workforce shortages and slowed growth.
Digital transformation in tax and employment reporting: Governments are digitizing tax filing and employment reporting, improving efficiency, and strengthening compliance enforcement. Companies that embrace these digital shifts can benefit from streamlined processes and reduced administrative burdens, while those that are slow to adapt may face increased scrutiny and penalties.
*Source for all country specific information listed here:
Vialto Partners Webinar “CEE 2025 Tax & Immigration Update”; January 22, 2025
Several overarching themes emerge when comparing employment and tax policies across CEE. The region is witnessing a widespread increase in minimum wages and social security contributions, reflecting a broader commitment to employee welfare. These adjustments align with efforts to modernize labor markets and make them more attractive for skilled professionals. However, they also place additional financial burdens on businesses, necessitating strategic workforce planning.
Another notable trend is the growing emphasis on labor migration programs. Countries like the Czech Republic and Poland are refining their immigration policies to attract international talent and fill skills shortages. The introduction of digital nomad visas in Greece, Kazakhstan, and Turkey further highlights the region’s efforts to position itself as a hub for remote professionals. However, these changes also come with stricter compliance requirements, making it crucial for employers to stay up to date with evolving regulations.
Meanwhile, governments across CEE are accelerating digitalization in tax administration. Kazakhstan’s universal tax filing system, Slovakia’s online immigration reservation process, and Turkey’s digital tax transformation all indicate a push towards efficiency and compliance enforcement. Businesses operating in the region must take steps to ensure that their internal reporting systems align with these technological advancements to avoid potential penalties.
Despite these commonalities, each country presents unique opportunities and challenges. Hungary’s approach to enhancing employee benefits, for instance, contrasts with Poland’s stricter immigration controls. Kazakhstan’s focus on attracting IT talent through tax incentives differs from Romania’s simplification of freelancer taxation. Understanding these nuances is key to making informed business decisions in the region.
For employers in the CEE region, the key to success lies in adaptability and strategic planning. Companies must:
Employers must remain agile in response to regulatory shifts. By leveraging expert insights and adopting a proactive approach, businesses can mitigate risks, optimize operations, and build a resilient workforce in Central and Eastern Europe.
For a deeper dive into these insights, watch the webinar and explore how they apply to your business strategies
If you have any questions, please reach out to your usual Vialto Partners point of contact, or the Vialto experts below:
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