In a continent of 44 countries, it can be difficult to pick one to start a business in. While many of these nations share the benefits of EU membership, each is still competing to attract investors & entrepreneurs, and each has its own strengths and weaknesses.
Below are eight of the best countries to start a business in Europe. These nations demonstrate the full range of advantages for startups and branches in Europe: low regulation, top talent, a high standard of living, and access to generous grants and funding.
You'll also find our free guide to starting a business in Europe below. If you're inspired to start a business in Europe, Euro Start has over 15 years' experience helping entrepreneurs to realise their dreams. If you'd like us to help realise yours, get in touch.
Download our free guide to starting a business in Europe
France
Europe’s third largest economy and most visited country, France is an increasingly attractive destination for businesses. A suite of reforms by President Emmanuel Macron have increased business hours, simplified the process for removing underperforming staff, and made it easier for small businesses to grow and find investment, all contributing to a thriving economy. Today, France is the epicentre of the European tech startup scene, and a welcoming home to all manner of small businesses. A network of tech hub cities, bustling startup campuses, a generous visa programme, and high levels of state and EU investment all make it an excellent country to start a business in - as well as a beautiful and fulfilling place to live and work. Take a look at our article on how to open a company in France or download our free guide below with all the information you need to know on how to start a business in France.
Pros to starting a business in France
- Prestigious location
- Ample startup grants
- Strong startup support
- Tech hub network
- Top tourism destination
Top cities for business in France
- Paris
- Lyon
- Marseille
- Nice
- Montpellier
Ireland
From the ashes of the financial crisis, Ireland has emerged as one of Europe’s leading business destinations. Heavy investment in life sciences and agriculture has increased exports, while generous tax breaks and low corporate tax have helped businesses across the board. Many corporations have relocated their European operations to Ireland, including Apple, Google and Meta. While the business environment has been geared towards larger businesses, there’s plenty of space for startups too. Ireland has an extremely generous R&D Tax Credit Scheme, and its Knowledge Box initiative provides added incentives for assets such as patents which are registered and managed in the country - making it a great place for all sizes of pharmaceutical and tech firms. Take a look at our article on how to open a company in Ireland or download our free step-by step guide.
Pros to starting a business in Ireland
- Business friendly
- English speaking
- Close to UK market
- Research & export hub
Top cities in Ireland
- Dublin
- Galway
- Cork
- Limerick
United Kingdom
The UK has traditionally been a welcome home to entrepreneurs, and a popular destination for the European arms of international businesses. While this is still the case, the decision of the UK to leave the European Union has changed this dynamic, and removed some of the competitive advantage the UK had as a business-friendly and English-speaking nation. The UK remains an extremely competitive place to open a business, with low tax rates, ample state support, and a relatively simple formation process. While the ongoing issues with EU trade make it less attractive than before, it continues to attract more investors than other European nations, and remains an influential location for finance and fintech companies.
Pros to starting a business in the UK
- Low regulation
- Low corporate tax
- Strong startup structure
- Plentiful startup funding
- Large consumer market
Top cities in the UK
- London
- Edinburgh
- Manchester
- Glasgow
- Bristol
Portugal
Aside from the numerous quality of life benefits, Portugal is an increasingly popular and attractive destination for startups. Startup campuses in both Lisbon and Porto have emerged as ideal homes for innovative businesses, supported by generous investment visas, a skilled workforce, R&D funding, and the 200 M scheme that matches local startup investments. Bureaucracy has typically not been Portugal’s strong point, but starting and running a business has become much easier in recent years as the country has sought outside investors. Portugal boasts one of the most generous tech visas in Europe, and its two main cities - packed with culture, skilled graduates, and tourists - make it a perfect place for startups. For more information, take a look at our article on starting a business in Portugal.
Pros for starting a business in Portugal
- Competitive tech visa
- Welcoming to foreign investment
- Matched startup funding
- High quality of life
- Great place for research and development
Top cities in Portugal
- Lisbon
- Porto
- Coimbra
- Braga
Netherlands
The Netherlands could easily be considered ‘the new UK’ following Brexit. With the highest percentage of non-native English speakers in the EU, and a light touch when it comes to business regulation, the Netherlands has been an easy place to relocate for many firms. This has bolstered the already thriving tech sector, as well as Amsterdam’s finance credentials. High standards of education and supreme connectivity are hallmarks of the Netherlands, with strong international rail links, the powerhouse of Amsterdam Schiphol Airport, and highly developed internet infrastructure. And while it does have a few weaknesses - an ageing population and relatively small size - most of these are easily negated by the benefits of the Schengen area. For more information, have a look at our in-depth article on how to start a business in the Netherlands.
Pros for starting a business in the Netherlands
- Low regulation
- Mainly English speaking
- Legacy of tech success
- Strong infrastructure
- Skilled workforce
Top cities in Holland
- Amsterdam
- Eindhoven
- Rotterdam
Germany
Europe’s biggest economy and industrial powerhouse, Germany is a safe bet for most businesses. Equally welcoming to small and medium-sized companies - the famous Mittelstand of stable, mid-sized firms - as large corporations, Germany’s economy seems to weather all storms, and its businesses benefit from sensible fiscal policies and stable leadership. Germany’s economic strength means that it doesn’t always need to have the most competitive policies, and taxes (and bureaucracy) can be high. However, it’s also an extremely welcoming environment for foreign investors, with generous investment and talent visas, a high level of English proficiency, and some of the lowest rents of major European cities. For more information, take a look at our article on the benefits of opening a company in Germany, and our article on the 5 best cities in Germany to start a business.
Pros for starting a business in Germany
- Strong economy
- Robust infrastructure
- High English proficiency
- Generous visa schemes
- Relatively low cost of living
Top cities in Germany
- Berlin
- Munich
- Hamburg
- Frankfurt
Denmark
All of the Scandinavian countries are good candidates for starting a business, but Denmark arguably leads the pack. One of the easiest nations in Europe to start a business in, Denmark benefits from a wealth of business-friendly policies, good support for startups, and excellent infrastructure, including reliable transport links and widely available high-speed internet. While Denmark is a member of the EU and part of the Schengen Area (meaning that it benefits from freedom of movement), the country has retained some opt-outs as part of its EU deal, including the continued use of the Danish kroner rather than the euro. Entrepreneurs should also be aware of potential paperwork issues, including tax payments and enforcing contracts. Take a look at our article for an in-depth view on the best cities to start your Danish business.
Pros for starting a business in Denmark
- Strong local talent
- Low regulation
- High standard of living
- LGBTQ+ friendly
- Robust infrastructure
Top cities in Denmark
- Copenhagen
- Aarhus
- Odense
Finland
If Ireland is the home of big tech and France is full of innovative tech startups, Finland may be the home of gaming. Appropriately for the home of Nokia, many of the world’s biggest mobile games were made here, including Angry Birds, Clash of Clans and Clash Royale. This is not to mention blockbusters such as Max Payne, Alan Wake, and Control - a Critics’ Choice Award winner. Helsinki frequently ranks as one of the best cities for networking in Europe, thanks in no small part to Slush, the world’s leading annual networking event for the tech industry. With €1.2 billion in investment in 2021 and a highly qualified workforce, tech firms have everything they need to thrive. Throw in world-leading happiness and quality of life, and you have an ideal startup destination.
Pros for starting a business in Finland
- Extremely stable
- Tech and gaming startup hub
- Plentiful local talent
- High foreign investment
- Strong startup networks
Top cities in Finland
- Helsinki
- Espoo
- Turku
Euro Start Entreprises have experience in company formation in over 30 countries worldwide, and are here to help you through the entire formation process. If you’re ready to start your European adventure or have any further questions, you can download our free brochures and don’t hesitate to get in touch with us via our contact page and we’ll be happy to help.
