A number of Americans would prefer to be anywhere else right now. That’s the conclusion from the passport data, anyway: the record for the number of passports issued has been broken in each of the last three years. While this might be deceptive, it’s easy to look at the news and see why some people might think the grass is greener elsewhere—particularly business owners and entrepreneurs.
They may be finding an ideal home in Europe. With political and financial instability elsewhere, a number of European nations are offering opportunities for American expats to start a new life along with a new business. The search for a refuge from the current chaos in America could be a decision that benefits individuals, their companies, and the European nations they move to.
American alienation
The political climate is causing a growing number of people to consider life elsewhere. This isn’t just the usual doom and gloom of Republican leadership for Democrat voters, but an increasingly hostile environment for many people. As well as excising many civil servants from their jobs, the rhetoric of Trump and his administration have led to growing hostility towards migrants and minority groups, as well as economic turmoil from the tariffs and unpredictable actions of Trump.
Related article: Trump tariff crisis: could the UK be a safe haven for EU trade?
The result of this chaotic governance has been an increasingly unstable environment for American businesses. This has been devastating not just for import and export reliant businesses, but also those reliant on tourism. The ramping up of immigration controls and rhetoric have led a number of tourists to be caught in the crossfire, while protests against Immigration and Customs Enforcement (ICE) have not been particularly welcoming either. Various metrics indicate that tourist numbers are down by a significant amount from many countries, most prominently Canada, the UK and Germany.
None of this feels likely to improve for several years at least. Even then, the prospect of change at the next election currently feels remote, with the Democratic Party still in turmoil and rudderless following Joe Biden’s decision to step down from the presidential race, and the convincing defeat of Kamala Harris. The Republican Party meanwhile is still deeply in thrall to an increasingly extreme and polarising political agenda, which is likely to continue even if Trump doesn’t engineer a way to run again.
The perks of moving to Europe
Europe is a fine place for a vacation, but it’s also a great place to start something more serious. The same qualities that make different countries great to visit also make them great places to start a business. Europe is home to numerous culturally distinct countries with their own markets, but most are also tied together by the European Union—making it easy to not just trade between countries when based in the EU, but also to benefit from numerous facets of EU membership.
Related article: Start A Business In France in 8 Steps
Chief among these for anyone encumbered by Trump’s tariffs is free access to the entire Schengen area. This doesn’t just mean tariff-free exports and imports to and from EU countries, but few other trade barriers, with limited checks required on goods and a low amount of paperwork compared to exporting goods elsewhere. EU membership also means free access to labour, with free movement also a facet of the Schengen area.
This might not be that different to the U.S. in terms of the overall quantity of talent, but unlike the US, there’s a huge concentration of talent from multiple countries within a much smaller area. Prospective employees can easily move to work for you long-term with no visa or sponsorship requirements, and strong transport links make the logistics of travelling to work much more feasible for a wider range of workers.
Quality of life is also a major factor. France is a common destination for this reason, with excellent food and great culture, and beautiful weather in the south. Yet many countries can offer similar perks. Most European countries offer walkable cities with easy access to amenities, good public transport, and a variety of other cities (and even countries) in driving distance, or just a short flight or train journey away. This means you get to not just lock into life in one country, but open up the possibility of travelling widely and enjoying many different experiences without having to be away from your nascent European business for too long.
Choosing a European business destination
With 23 countries in the Schengen area, there are plenty of potential destinations for American entrepreneurs to consider. While it’s no doubt tempting to lean into those dreams of sipping wine in the French foothills, there are a few other countries you should consider, with a range of different specialities and support for growing your business.
Germany
Europe’s biggest economy is a natural choice for the most ambitious entrepreneurs. Germany offers a stable political climate (at least, as stable as it gets right now), alongside a highly skilled workforce and world-class infrastructure. Berlin, in particular, has become one of Europe’s leading startup hubs, with a thriving ecosystem of accelerators, co-working spaces, and venture capital funding.
The German government also offers generous support schemes for innovative businesses and researchers, and many local governments have startup grants or subsidies to help cover early-stage costs. The country’s traditional strengths in manufacturing and engineering base makes it particularly attractive for entrepreneurs in hardware, cleantech, logistics, and the automotive sectors, while its central location makes it great for exports, and building partnerships both locally and across the world. For more information see our article: The 5 best cities in Germany to start a business
France
Beyond its obvious lifestyle appeal, France is making serious moves to attract international entrepreneurs. The French Tech Visa offers a simplified route to residency for startup founders, while the French Tech ecosystem has benefitted from a decade of heavy investment, particularly in Paris, Lyon and Bordeaux. President Macron’s pro-business reforms have included cutting the corporate tax rate, simplifying labour laws, and investing in digital infrastructure, all of which have built a strong foundation for businesses, and cast off some of the old stereotypes about French productivity. There is also the French entrepreneur visa which helps the smooth passage of entrepreneurs wanting to move to France – for more information see our article France entrepreneur visa: everything you need to know.
France is also notable for offering strong public support for research and development. The Research Tax Credit is one of the most generous in Europe, and government-backed incubators provide mentorship and office space to foreign founders. For creative industries, food and fashion, France is a global centre of excellence—and an increasingly great place to not just start a business, but help it to flourish.
Ireland
Ireland may be a small country but the economy is fuelled by foreign investment, low corporate tax and a liberal approach to trade. Generous investment and tax incentives complete an attractive package. And after the UK's vote to leave the European Union, no wonder thousands of foreign investors with import and export businesses are turning to Ireland to reap the benefits of EU trade opportunies and the Euro currency.
The fact there are no language barriers for American entrepreneurs and the old ties that link the US with Ireland due to its welcoming Irish immigrants at the turn of the 20th century mean that Ireland is an ideal prospect for business people. For more information, see our article: Start a business in Ireland in 8 Steps
The Netherlands
The Netherlands has a long tradition of international commerce, and is a gateway to Europe in both a geographical and business sense. Outside of the UK, Amsterdam is perhaps the most attractive base for American entrepreneurs thanks to its English-friendly business environment, not to mention its efficient bureaucracy and high quality of life.
The Dutch government has done significant work to encourage business innovation, and has specific visa schemes for entrepreneurs and startup founders. The Dutch ‘startup visa’ allows non-EU citizens to launch a business in partnership with an approved facilitator. For more information, see our article: Holland’s tax incentives for foreign entrepreneurs
The Netherlands is especially strong in tech, logistics, fintech, and sustainable development, making it a particularly good choice for entrepreneurs in those sectors. Its central location also means you’re a short hop from major European markets, and it boasts one of the best transport and internet infrastructures in Europe.
Estonia
Estonia may not be the first country you think of, but it has a burgeoning reputation as a home for enterprising entrepreneurs. Its e-Residency programme has proved genuinely revolutionary, allowing non-residents to start and manage a business entirely online, wherever they are in the world. This has made it a darling of digital nomads, remote workers, and tech entrepreneurs, and ideal for anyone looking to establish themselves in Europe.
The government has prioritised digital infrastructure and minimised bureaucracy in its bid to attract investment. Taxes are low and easy to file online, with 0% corporate tax on reinvested profits. Tallinn, its capital, has a growing startup ecosystem, and is already producing serious companies in fintech, cybersecurity, and SaaS. Estonia might not be the most glamorous choice, but it’s a beautiful country that’s also ideal for small, nimble businesses looking for an efficient and cost-effective base in Europe.
Trump may be chasing some Americans out of the country, but when it comes to entrepreneurs, Europe is opening the door. Whether you're looking for stability, talent, infrastructure, or simply a better lifestyle, the continent offers a wide range of possibilities for entrepreneurs seeking a new start—at least until this all blows over. If you require more information on starting a business in Europe, take a look at our free downloadable guides below.
