Gizane Campos
Europe is one of the most attractive regions in the world for entrepreneurs, offering access to a market of over 450 million consumers.
With well-developed infrastructure, supportive business regulations, and various incentives, the European Union and surrounds provide an ideal business environment for launching and scaling a company.
The continent also offers competitive corporate tax rates and a highly educated workforce, over 80% of young adults in the European Union have completed at least upper secondary education, making it easier for businesses to innovate and grow.
This guide compares the best European countries to start a business in 2025. This is based on key metrics from World Bank’s Ease of Doing Business Index and Global Citizen Solutions’ Investment Index that explores corporate tax benefits, GNI per capita, digital infrastructure, overall economic strength, business visa opportunities and more.
10 Best European Countries to Start a Business
We’ve combined data from two distinct but important ranking tools, namely World Bank’s Ease of Doing Business Index and Global Citizen Solutions’ Global Passport Index’s Investment ranking.
World Bank’s Ease of Doing Business Index scores economies based on key areas such as how easy it is to start a business, obtain credit, pay taxes, trade across borders, enforce contracts, and resolve insolvencies. The index indicates that European countries tend to consistently rank high in areas relating to starting a business and getting access to credit.
The Global Citizen Solutions’ Investment Index ranks countries based on their attractive factors for investors, particularly those seeking to get second citizenship. It combines three main factors: global economic competitiveness, gross national income (GNI) per capita and personal tax rate, which considers the highest applicable income tax rate for individuals.
Together, all these factors highlight countries with the best investment opportunities, where you can do business easily and take advantage of good tax structures.
1. Denmark
Ease of Doing Business ranking: 4- Investment Index ranking: 11
- GNI per capita: $66,720
- Top ‘Doing Business’ area: Trading Across Borders
Ease of Doing Business ranking: 4Denmark consistently ranks among the easiest places to do business in the world, with a simple online business registration process and transparent regulations.
Copenhagen is the business center, especially in renewable energy, biotech, and food tech.
Denmark’s offers the “flexicurity” model that aims to balance flexibility for employers with security for workers. It involves the golden triangle of flexible hiring and firing rules, generous unemployment benefits, and an active labor market policy.
This “flexicurity” model helps create a dynamic labor market where employers can adapt to changing conditions while providing a safety net for workers.
2. United Kingdom
- Ease of Doing Business ranking: 8
- Investment Index ranking: 13
- GNI per capita: $49,420
- Top ‘Doing Business’ area: Getting Credit
Ease of Doing Business ranking: 8The United Kingdom continues to be a prime location for launching a business, thanks to its 25% corporate tax rate and well-structured labor laws.
These regulations ensure fair wages and strong worker protections, including rules on working hours, sick leave, and anti-discrimination.
The UK actively encourages foreign investment through initiatives like Innovate UK, which funds innovation, and the Enterprise Investment Scheme (EIS) that offers tax relief for early-stage startups, encouraging innovation-led business ventures.
London stands out as the top business hub, offering excellent global connectivity, rich access to venture capital, and a highly diverse talent pool.
3. Sweden
- Ease of Doing Business ranking: 10
- Investment Index ranking: 11
- GNI per capita: $61,090
- Top ‘Doing Business’ area: Enforcing Contracts
Ease of Doing Business ranking: 10Sweden combines economic stability with a deep commitment to innovation. It consistently ranks among Europe’s most advanced knowledge economies, with strong R&D investment (approximately 3.4% of GDP) and world-class infrastructure.
The government offers significant tax deductions for innovation, green technology, and digital transformation initiatives.
Stockholm is a global startup capital often dubbed the “Unicorn Factory” for having produced companies worth over $1 billion (the so-called unicorns in question) including Spotify, Klarna, and Skype.
The business culture promotes transparency, collaboration, and sustainability. Thriving sectors include cleantech, life sciences, health tech, digital services, and automation.
Sweden not only excels in innovation and sustainability but is also recognized in the Global Intelligence Unit’s Global Education Report for its world-class education system, offering an added advantage for entrepreneurs wanting to relocate with family and build long-term roots in the country.
4. Lithuania
- Ease of Doing Business ranking: 11
- Investment Index ranking: Not in top 20
- GNI per capita: $25,900
- Top ‘Doing Business’ area: Dealing with Construction Permits
Ease of Doing Business ranking: 11Lithuania has quickly become a hotspot for entrepreneurs and the growth of startup ecosystems, thanks to its low 15% corporate tax rate and a business environment that ranks among the best in the European Union.
The government has created a welcoming climate for foreign investment, streamlining company registration, reducing bureaucracy, and offering incentives for innovation and job creation.
Vilnius, the capital, has emerged as a fintech powerhouse, home to over 250 licensed fintech companies. This growth is largely due to Lithuania’s forward-thinking regulatory framework, including its e-licensing platform, which enables payment and e-money institutions to fast-track EU-wide operations.
The government’s proactive stance has positioned Lithuania as the second-largest fintech hub in the EU by licenses issued, right behind the UK.
5. Estonia
- Ease of Doing Business ranking: 18
- Investment Index ranking: 12
- GNI per capita: $41,570
- Top ‘Doing Business’ area: Starting a Business
Ease of Doing Business ranking: 18Estonia’s forward-thinking tax system (0% corporate tax on reinvested profits) is a major draw for entrepreneurs looking to scale efficiently.
Estonia was a pioneer with their e-Residency program, highlighted in the Global Intelligence Unit’s Digital Nomad Report, enables foreign entrepreneurs to launch and manage a European business entirely online. This innovative approach makes Estonia one of the most accessible and digital-friendly business environments in Europe.
Tallinn, the capital city, is a vibrant tech hub filled with co-working spaces, accelerators, and a growing pool of IT talent. The government actively funds innovation through programs like Startup Estonia, and its low regulatory burden makes launching a company quick and inexpensive.
Dominant industries include IT, cybersecurity, blockchain, fintech, and digital government solutions.
6. Finland
- Ease of Doing Business ranking: 20
- Investment Index ranking: Not top 20
- GNI per capita: $55,940
- Top ‘Doing Business’ area: Registering Property
Ease of Doing Business ranking: 20Finland consistently ranks among the most innovative countries in the world, driven by its highly educated population, over 90% of adults have completed upper secondary education, and generous government investment in research and development.
The country allocates around 3% of its GDP to R&D, one of the highest rates in Europe.
Helsinki, the capital, serves as the heart of Finland’s startup ecosystem, hosting globally recognized events like Slush and offering access to accelerators, venture capital, and angel networks.
The Finnish government supports entrepreneurship through programs like Business Finland, which offers grants, loans, and export support for startups and scale-ups.
Finland also boasts robust intellectual property (IP) laws and streamlined patent procedures, giving businesses greater security for innovation.
Key thriving industries include edtech (e.g., digital learning platforms), cleantech (especially in renewable energy and energy efficiency), telecommunications, and gaming, with companies like Supercell and Rovio (creator of Angry Birds) leading the global market.
7. Germany
- Ease of Doing Business ranking: 22
- Investment Index ranking: 16
- GNI per capita: $53,970
- Top ‘Doing Business’ area: Resolving Insolvency
Ease of Doing Business ranking: 22Germany, based in Western Europe, is the industrial backbone of the continent, hosting world-renowned manufacturing and engineering sectors.
While corporate taxes are on the higher side, businesses benefit from access to a large, affluent consumer base and some of the most advanced infrastructure and logistics networks in the world.
Berlin is a magnet for startups, particularly in mobility tech, SaaS, e-commerce, and green energy, while Munich is known for excellence in automotive, biotech, and industrial engineering.
According to data from the Global Intelligence Unit’s Global Education Report, Germany is notable for its strong link between education and industry. Its dual vocational training system ensures a steady pipeline of highly skilled labor, benefiting businesses across sectors, from manufacturing to mobility tech.
The “Make in Germany” initiative and various regional development funds promote foreign investment, especially in tech-driven and R&D-intensive ventures.
Germany’s commitment to industrial innovation and export-led growth make it a heavyweight on the European business stage.
8. Ireland
- Ease of Doing Business ranking: 24
- Investment Index ranking: 19
- GNI per capita: $79,730
- Top ‘Doing Business’ area: Paying Taxes
Ease of Doing Business ranking: 24Ireland offers one of the most pro-business environments in Europe, fueled by its ultra-competitive corporate tax rate of 12.5%. This has attracted a host of Fortune 500 companies, particularly in the tech and pharmaceutical sectors. Major players like Google, Meta, Apple, and Pfizer have regional headquarters here, benefiting from a combination of a highly skilled workforce, English-speaking talent and robust infrastructure.
Dublin is the beating heart of Irish commerce and innovation, home to an ever-growing tech scene and startup community.
Government support for investors is strong, with IDA Ireland providing tailored advisory services, grants, and tax incentives.
With initiatives like Enterprise Ireland investing in Irish businesses, foreign investors are able to collaborate with locals who are knowledgeable and consist of a highly skilled workforce for a mutually beneficial ecosystem.
Ireland’s economy is heavily export-driven, with key sectors including ICT, pharmaceuticals, financial services, medical technology, and biotech.
Another attractive feature of this country is its Ireland Startup Entrepreneur Visa. It is specifically designed for entrepreneurs seeking to establish or grow their businesses in Ireland. It includes the potential for permanent residency, access to the EU market and funding, and a supportive entrepreneurial ecosystem.
9. Portugal
- Ease of Doing Business ranking: 39
- Investment Index ranking: 13
- GNI per capita: $31,870
- Top ‘Doing Business’ area: Getting Electricity
Ease of Doing Business ranking: 39Portugal has emerged as a vibrant startup ecosystem, especially in Lisbon and Porto, thanks to tech hubs and government-backed funding initiatives. The country has a corporate tax rate of 21% with the government supporting foreign investment through initiatives like Startup Portugal and grants for innovation projects.
Lisbon is the leading business hub, offering a vibrant community and affordable living costs. Portugal’s Golden Visa program is also one of the most popular in Europe, granting residency to those who create jobs, or fund cultural and scientific initiatives.
Even better, there is the Portugal D2 Visa, a residency visa designed for entrepreneurs, freelancers, and independent professionals who want to relocate to or start a business in Portugal.
10. Netherlands
Ease of Doing Business ranking: 42- Investment Index ranking: 17
- GNI per capita: $60,230
- Top ‘Doing Business’ area: Protecting Minority Investors
Ease of Doing Business ranking: 42The Netherlands is strategically positioned in Western Europe and serves as a gateway to various other European markets.
It is supported by world-class infrastructure, including Europe’s largest port in Rotterdam and one of the busiest airports, located in Amsterdam.
Its transparent tax policies and international trade agreements make it a preferred location for holding companies and logistics-based enterprises.
Amsterdam is the key hub for startup ecosystems, particularly attractive for businesses in fintech, AI, SaaS, renewable energy, and creative industries.
The Dutch government actively encourages innovation through the Innovation Box incentive, a special tariff box on your corporate tax return that allows you to pay less corporate income tax on the profit of innovative activities.
Also, the Netherlands Foreign Investment Agency (NFIA) offers tax incentives and entrepreneurial support for foreign investors.
Discover how Portugal’s Golden Visa can grant you residency while you grow your venture in business-friendly country.
Corporate Tax Rates: Top European Countries for Business
Country | Corporate Tax (2025) | |
 | Denmark | 22% |
 | United Kingdom | 25% (standard rate from April 2023 onward) |
 | Sweden | 20.6% |
 | Lithuania | 15% |
 | Estonia | 0% (retained earnings), 20% (on distributed profits) |
 | Finland | 20% |
 | Germany | 29.8% (including trade tax, varies by region) |
 | Ireland | 12.5% (15% for large multinationals) |
 | Portugal | 21% (plus municipal surtaxes up to 1.5%) |
 | Netherlands | 19% (up to €200,000), 25.8% (above €200,000) |
Benefits of Starting a Business in Europe
1. Easy access to the European single market
Establishing a business in an EU or European countries provide access to over 450 million consumers and simplified trade across borders.
2. Entrepreneur-friendly visa options
European countries like Portugal, Estonia, and the Netherlands offer residency and citizenship routes such as through Golden Visas and Startup Visas for entrepreneurs and investors.
3. Attractive tax benefits
On average, European countries levy a corporate tax rate of 21.5 percent. This is slightly below the worldwide average which of 23.5 percent.
4. Government support for businesses and capital ventures
Many European Union governments actively support foreign investors through grants, tax credits, and R&D subsidies.
EU countries tend to have great business support schemes that actively support small and medium-sized businesses through incentives, and digitalization programs.
5. Simple online business setup
Digital-first countries like Estonia and Denmark allow foreign entrepreneurs to register a business online with minimal red tape.
6. Highly skilled, multilingual workforce
Europe offers access to an educated, diverse workforce fluent in English and other major languages, making hiring easier for foreign-led businesses.
7. Strong legal and IP protections
Foreign investors benefit from the EU’s strong legal processes, including strict intellectual property rights enforcement and transparent dispute resolution.
8. Opportunities across industries
From fintech in Lithuania to cleantech in Sweden and life sciences in Germany, Europe presents fertile ground for sector-specific growth.
The strong digital infrastructure in European countries like Estonia and the Netherlands make them top picks for remote-first and tech-driven businesses.
9. Great quality of life for you and your family
Many European countries rank as some of the best countries to live in, offering excellent healthcare, education, and infrastructure.
Entrepreneurs and investors can rest assured they will be able to grow their business while simultaneously building a better life for their family.
10. Easy expansion to other EU countries
Once you start a business in an European country, you can scale into a neighboring European single market without needing to set up entirely new legal entities or navigate customs barriers.
Combine investment opportunities and international mobility with the top Golden Visa programs.
Frequently Asked Questions About the Best European Countries to Start a Business
What are the best European countries to start a business in 2025?
Several European countries are considered to be the most business-friendly for foreign investors. Nordic countries like Denmark, Sweden and Finland often topping rankings.
Additionally, the UK, Switzerland, Germany, and the Netherlands are also frequently mentioned for their supportive infrastructure and culture.
Which European Union countries offer startup visas for foreign entrepreneurs?
Several EU countries offer startup visa programs for non-EU entrepreneurs, including Estonia, France, Portugal, Spain, Italy, Ireland, and the Netherlands.
These programs allow founders with innovative business ideas to launch a company and gain residence rights in one of the European countries.
What is the best country in Europe to start a tech company?
Estonia is widely considered the best European country to start a business in the tech sector, thanks to its digital infrastructure, e-Residency program, and low bureaucracy.
Other top European countries to start a business in technology include Germany, Ireland, and Sweden for access to capital and strong tech ecosystems.
Which European countries offer grants or funding for new businesses?
Countries like Germany, France, Finland, and Ireland offer government-backed grants, subsidies, and incentives to grow startup ecosystems.
EU-wide funding programs like Horizon Europe also support innovation and research-driven businesses.
Where can foreigners buy a ready-made business in the EU?
Foreigners can buy ready-made or “shelf” companies in countries like Cyprus, Estonia, the Czech Republic, and Bulgaria.
These countries have established marketplaces and minimal restrictions on foreign business ownership.
What is the easiest European country to get a business license?
Estonia and Denmark are among the easiest European countries to obtain a business license due to fully digital processes, low fees, and minimal red tape.
Most procedures can be completed online in just a few days.
Can non-EU citizens own 100% of a business in Europe?
Yes, non-EU citizens can own 100% of a business in many European countries, including Germany, Ireland, Portugal, the Netherlands, and Estonia.
There are no ownership restrictions for most sectors.
What are the fastest European countries for company formation?
The fastest European countries for offshore company formation include Estonia (1 to 3 days), Ireland (3 to 5 days), and Lithuania (3 to 7 days).
This is all thanks to streamlined digital registration systems that are ideal for quick setup.
What is the easiest European country to get a business license?
Estonia is often ranked as the easiest country to get a business license. Their e-Residency program allows you to open and run a company 100% online.
Lithuania and Finland also offer fast and transparent licensing processes.
Are there business support schemes for startups in Europe?
Yes, many EU countries offer business support schemes, including grants, tax credits, accelerators, and low-interest loans for entrepreneurs.
What are the easiest countries in Europe to incorporate a company?
Estonia, Denmark, and Lithuania consistently rank among the easiest countries to incorporate a company, with fast online registration and minimal bureaucracy.
Do I need to be an EU citizen to open a business in Europe?
No, you don’t. Non-EU citizens can start a business in most European countries, although visa or residence permit requirements may apply depending on the country.
Is it possible to access the European Single Market by opening a business in the EU?
Yes. Registering a business in an EU country grants access to the European Single Market, allowing free movement of goods, services, capital, and labor across member states.
Which European countries have the lowest corporate tax rates?
Ireland (12.5%), and Lithuania (15%) offer two of the lowest corporate tax rates in Europe, making them especially attractive for new businesses.
