In an increasingly interconnected world, the choice of country to create and establish your business can have an impact on its success. Europe, with its great diversity of economic policies and possibilities for innovation, offers a multitude of attractive options for entrepreneurs. Especially, free movement in the ETIAS countries of the Schengen area is an undeniable advantage for the mobility of European professionals who can easily choose to start a business in the country that best suits their projects. In this guide, we offer you a selection of European nations that stand out for their favorable business climate, their attractive regulations and their technological infrastructures, among others. The future of your business could well be in Europe!
Denmark
The Denmark has ranked at the top of the most business-friendly European countries for several years, thanks in particular to business-friendly regulations, a support for start-ups and excellent infrastructure. It is also appreciated by companies because of a talented workforce and a good quality of life (salaries there are the highest in Europe). Starting a business is simplified and cheap, making the country an attractive business environment.
Sweden
The Sweden is an ideal nation to set up a business in Europe due to its dynamic environment and strong culture of innovation. Swedish start-ups experienced a meteoric growth since 2020. Several factors contribute to this favorable environment such as advantageous taxation, a highly qualified workforce and excellent internet connectivity. Sweden also promotes a balance between work and family life, which leads to a positive entrepreneurial spirit.
The Netherlands
With light business regulations, strong international connectivity, technological success and a high level of education, the Netherlands favors the establishment of many companies. Following Brexit, the nation was renamed the “new United Kingdom” due to the high proportion of non-native English speakers from the European Union choosing to settle there. A proof of the attractiveness of the Netherlands with entrepreneurs.
The United Kingdom
The only country outside the EU and Schengen area on this list, the United Kingdom stands out with the lowest start-up costs in Europe, with no start-up costs required of entrepreneurs and a low corporate tax rate. The creation process is simplified and many financings are available. Despite Brexit, the United Kingdom therefore remains extremely competitive for opening a business. It still attracts more investors than other European countries, and remains an influential location for financial and fintech companies.
Finland
With low corporate taxes, high salaries, a highly skilled workforce, a stable environment, significant foreign investment and an outstanding score in terms of happiness and quality of life, Finland is an ideal destination for contractors. Finland is also recognized as an important technology hub. Notably considered one of the cradles of video games, the Scandinavian country has seen the birth of mobile giants like Angry Birds and Clash of Clans, as well as successes such as Max Payne and Alan Wake.
Germany
Germany, the fourth largest economy in the world and first in Europe, is a pillar of technology and start-ups. Five German cities are among the top 150 in the global index and the nation stands out in the energy, environment, transport and fintech sectors. The country is as favorable for SMEs as it is for large corporations due to sound tax policies, generous visa regime, strong economy, high level of English proficiency and a relatively low cost of living.
Estonia
L’Estonia, with the highest number of start-ups per capita in Europe, is a privileged place for the creation of high-tech companies. The nation, often dubbed “E-stonie,” is renowned for its e-residency program that allows non-citizens to set up and run their businesses online. Estonia also stands out for its competitive tax regime, one of the most competitive among developed countries according to the International Tax Competitiveness Index. Instead of taxing companies in the traditional way, Estonia taxes profits and if a company reinvests its profits, no tax charge is due.
Lithuania
Like its neighbor Estonia, Lithuania has become a major center for tech start-ups. Strategically located at the crossroads of four lucrative markets (Western Europe, Scandinavia, Russia, CIS), the country represents the largest market in the Baltics, offering a considerable advantage for start-up companies.
Start-ups and SMEs benefit from substantial support, with many entrepreneurial events organized each year. Lithuania also stands out for its exceptional pool of competent young graduates, particularly in the fields of mathematics, science and technology, bringing added value to companies.
