The 10 best cities in Europe to start or expand your business

While London wrestles with Brexit’s aftermath, other European cities are quietly stealing the spotlight, offering fewer entry barriers, generous funding, and fast access to talent. In Berlin, a startup launches every 20 minutes. Paris has more students than Luxembourg has people. And in Tallinn, you can register a company from your sofa in Birmingham. Yet many UK entrepreneurs overlook these opportunities. This guide reveals the top cities to consider in 2025, and how Wise Business can help you move money across borders affordably.

The best cities in Europe for business: An overview

The right city gives your business immediate access to talent, capital, infrastructure and customers, letting you grow quickly. Here are some cities and their strengths:

• Bootstrapping on a budget? Berlin offers Europe's cheapest expansion at €17-20 per square metre office rent—a fraction of London prices.
• Need world-class talent? Paris delivers 810,000 university students plus Station F, the world's largest startup campus with 30+ accelerator programmes.
• Chasing investment? Zurich houses 15,000 banking offices and raised CHF 1.47 billion for startups in just six months, while Frankfurt hosts the European Central Bank and 200+ banks.
• Going global fast? Amsterdam connects to 300+ destinations worldwide, while Tallinn lets you register a company in hours through its 100% digital system.
• Want speed over everything? Copenhagen's Fast Track visa scheme and Helsinki's same-day company registration get you operational while competitors are still filling forms.

What makes a city business-friendly?

Choosing the right city to start or expand your business in Europe is a step towards success. The most business-friendly European cities have common characteristics that make life easy for entrepreneurs like you. Here’s what makes a city business-friendly:

• Stable economy: A city with a strong economy is great for your business. The low unemployment and high GDP growth rate provide a stable environment to expand. Cities with foreign investment, especially in tech or green energy, provide additional opportunities to reach customers and attract funding.
• Talent pool and quality of life: You need a good team to grow your business, and the best cities attract skilled workers. Cities with quality healthcare, a friendly culture, and high standards of living have the best talent pool. This will impact your business growth because the happier the workforce, the more productive they are.
• Affordable costs: Managing costs will enable you to concentrate on business expansion. Startups can stretch their budgets in cities with reasonable corporate taxes, affordable office rents, and competitive wages. Low operational costs are a game-changer in the modern economy, as they will enable you to spend more on innovation and customer outreach without going bankrupt.
• Supportive business environment: The best cities in Europe for businesses are low on red tape. It’s easier to operate in such cities, as there are clear regulations, investment incentives and legal protections. Low-bureaucracy, entrepreneur-friendly cities make it easy to get permits, pay taxes, and do all the other things you need to do to run your business, not battle paperwork.
• Ease and speed of setting up: Getting your business off the ground quickly is a major advantage. You start fast in cities that simplify the process of registering a company, obtaining permits and accessing incentives. The ones that don’t take months to set up will save you time and money, and you can concentrate on making your business grow instead of dealing with bureaucracy.

Top 10 best cities in Europe for business

The following cities are the ideal combination of economic stability, skilled talent, and transparent rules for UK entrepreneurs. These cities make starting and expanding easy because they have the best infrastructure and growth-friendly environments.

Paris, France

Take Paris seriously if you’re starting a business that needs talent, capital and exposure. It’s the location of the largest startup campus in the world, Station F, where startups have access to over 30 programmes.¹ This gives you easy access to talented partners, access to investors, and a network to expand even outside of France.

Add to that, Paris has approximately 810,000 students, the largest student population in Europe.² They fill a rich talent pool with graduates of the best institutions, such as PSL University and Paris-Saclay. This is all the more reason why Paris is an exceptional city where resources and access to global connections are in your favour.

• Paris reality check: Bureaucracy moves slowly, so plan for 3 - 6 months to get all permits in place.

In France, red tape hasn’t vanished; permits and sector licences can still drag on for weeks or even months, and you’ll need to budget for translation and notary fees. Founders and key hires should also brace for salary floors roughly twice the minimum wage, with strict eligibility for French Tech and Talent permits.

💡 Learn more about doing business in France

Amsterdam, Netherlands

Amsterdam has a startup-friendly culture combined with world-class connectivity. The city is connected to more than 300 destinations across the world through Schiphol Airport, which gives businesses easy access to customers and partners. The small size of the city also implies that you are never too far away to attend a meeting, be it with a local client or an international investor who flies in for the day.

The startup scene is booming with venture capital investment of 10 billion USD since 2020.³ Amsterdam also has the top accelerators, such as StartupAmsterdam and ACE, and founders have direct access to mentors and investors.⁴ It is also one of the most accessible cities in Europe to create diverse teams, with the majority of the Dutch people speaking English and a large pool of international professionals.⁵ You can also apply for the Dutch Startup Visa to relocate and launch your business more seamlessly.

• Amsterdam reality check: The cost of living in Amsterdam is among the highest in Europe, so consider higher salaries and office rents when planning your budget.

Berlin, Germany

Berlin is a relatively affordable launch pad where the average office space costs about 17 - 28 EUR per square metre, compared to Munich and Frankfurt.⁶ This implies that your initial budget will stretch further. The startup ecosystem of the city is among the most vibrant in Europe, as new businesses launch every 20 minutes.⁷

There is good local funding support available to founders. For instance, the GründungsBONUS Plus can finance up to half of your eligible startup expenditures, to a maximum of 50,000.⁸ Berlin gives you the means to expand quickly, whether you’re cutting costs, building teams or looking for funding.

• Berlin reality check: €17-20/sqm sounds cheap but good locations go fast. The city launches a startup every 20 minutes, meaning fierce competition for talent despite the large pool.

Dublin, Ireland

Dublin is among the best cities in Europe to start a business that wants to expand fast. It offers a highly skilled English-speaking workforce and proximity to the EU market. Large firms like Google, Meta, and Stripe are based in Dublin.⁹ Their presence creates a pool of suppliers, partners, and talent that new businesses can tap into instantly.

The city also attracts new investment in high-growth sectors. For instance, financial technology company, Fenergo, invested 100 million EUR to build a new headquarters in Dublin and create 300 new jobs, with a focus on research and development (R&D).¹⁰ This translates to more chances to hire the best talent, network with international innovators, and grow a business in a city that is squarely on the map of international investors.

• Dublin reality check: There’s stiff local competition in Ireland, which extends to Dublin, so be ready to stand out fast. We covered more cons and pros of doing business in Dublin and other cities in Ireland here

💡 Learn how to start a business in Ireland

Zurich, Switzerland

If your business needs a base in one of Europe’s strongest financial centres, Zurich is hard to beat. The city has 15,000 offices of different banking institutions, so you will be in the right place to establish partnerships and attract investment.¹¹ Swiss startups in the first half of 2025 alone raised over CHF 1.47 billion, with much of that being in the booming fintech and biotech sector in Zurich.¹²

It’s also easy to find talent, as ETH Zurich is one of the best universities in the world when it comes to engineering, AI, and life sciences.¹³ Throw in direct flights to 214 destinations worldwide out of Zurich Airport,¹⁴ and you have a city that keeps you connected and gives your business room to grow.

• Zurich reality check: Zurich gives you access to world-class talent, but the cost of office rents and daily operations is high, so plan your budget carefully.¹⁵

💡 Learn how to start a business in Switzerland

Frankfurt, Germany

Frankfurt is one of the most significant financial centres in Europe. It’s home to the European Central Bank and more than 200 local and international banks.¹⁶ This is what qualifies it as the perfect place to find a source of capital, financial expertise and international networks.

The city is located in the middle of Europe and can be reached by air or train within a few hours to major cities like Paris, Amsterdam, or Zurich. It’s also a highly skilled labour city, especially in finance, technology and logistics. Frankfurt is where companies can grow their connectivity, find capital, and access talent with ease.

• Frankfurt reality check: Although Frankfurt has a stable economy, it also has challenges like high taxation and complicated regulations.

💡 Learn how to start a business in Germany

Stockholm, Sweden

Stockholm is a leading place for innovation in Europe with several successful startups such as Spotify, Klarna, and Skype.¹⁷ The city invests in tech and sustainability, and the government strongly supports R&D.

The high degree of public-private partnership in the city, such as Stockholm Innovation and Growth (STING), also provides founders with direct access to mentoring, grants, and investors.¹⁸ You can work efficiently and access a market that is both innovative and impact-driven with one of the fastest 5G rollouts in Europe.¹⁹ Go for Stockholm if you want a digital-first city with talent that’s ready to work.

• Stockholm reality check: Employers pay 31.42% of the gross salary of an employee as social fees and taxable benefits, so consider this when planning your hiring.²⁰

Copenhagen, Denmark

Copenhagen is one of the most sustainable business environments in Europe, with an ambitious aim to be carbon neutral by 2025.²¹ Although the target was not met, this dedication has attracted clean tech, biotech and advanced manufacturing firms.

The startup community in the city is supported by the Fast Track visa scheme, which allows approved businesses to hire skilled foreign workers without the bureaucracy of the visa process.²² Additionally, Copenhagen has a high concentration of universities and research facilities, giving businesses a constant supply of highly trained professionals.

Copenhagen reality check: If you’re hiring from outside the EU, you’ll need to meet strict salary thresholds.

💡 Learn how to start a business in Denmark

Helsinki, Finland

Helsinki has become one of the most promising startup capitals in Europe, with access to early-stage funding on a per capita basis. The city also organises one of the world’s most prominent startup event, Slush, which connects investors and partners with startup founders every year.²³

The benefits of doing business in Helsinki include highly digitalised government services, with the ability to open a company within a few hours. The government provides business grants and loans through Business Finland with specific emphasis on technology, gaming, and sustainability projects.²⁴ Helsinki enables international expansion due to a well-developed English-speaking talent base and close connections with the EU and Nordic markets.

• Helsinki reality check: Company laws are complex, so expect to spend extra time with local legal experts to make sure you meet every requirement.²⁵

💡 Learn how to start a business in Finland

Tallinn, Estonia

Tallinn is among the most digitalised business centres in Europe where 100% of public services are online and accessible 24/7.²⁶ The e-Residency programme allows entrepreneurs to start a business in Estonia without ever visiting the country, and the programme has over 100,000 members in more than 170 countries.²⁷

The city is strategically located to reach Nordic and EU markets within a short time, yet the cost of living is lower than in most Western European capitals.²⁸ This enables startups to save more on rent, making it one of the best cities in Europe to own a business. Consider Tallinn if you want instant business setup with solid digital services.

• Tallinn reality check: The e-residency is not enough to open a bank account; you need to demonstrate a strong connection in Estonia to open a bank account. ²⁹ This is where Wise business account comes in. Wise is not only founded by two Estonians, but also we make it easy to set up local account details for your business in 40+ currencies including Euro.

💡 Learn how to start a business in Estonia

Which European cities are more difficult to expand or start a business in?

Some cities in Europe are more difficult to start a business in than others, depending on your industry and how quickly you have to act. The common pain points are slow or multi-step permitting and complicated labour and tax administration.

For example, Rome and Naples are known for layered bureaucracy and strict employment regulations.³⁰ Another example is Athens, with time-consuming licensing and taxation.³¹ These are not deal breakers, per se, but they can delay you and make starting off challenging.

Top tips to expand to Europe

These are some of the things that you should do before you make the move to a new city in Europe:

• Select the appropriate company structure in your target destination, since regulations on tax, reporting and employment differ.
• Sort out funding early and open a business account that can be used internationally. Services such as Wise Business allow you to hold 40+ currencies and send money to cities without the high costs normally associated with international transactions.
• Get to know the local registration and tax procedure to ensure that you do not get stuck, and you might want to hire a trusted advisor who is familiar with the system.
• Begin to network before you get there – local meetups, chambers of commerce, and industry groups can lead to customers and partners.

💡 See the full guide to doing business in Europe✈️

Go global with Wise Business, the business account for startups and entrepreneurs

While having a corporate bank account may be mandatory in many parts of the continent, you can also use Wise Business to help grow your business in Europe to start trading with lower costs right away.

Open a Wise Business account and you can manage your company’s finances in 40+ currencies all in one place, including EUR, GBP and USD and all other major currencies. You’ll be able to pay suppliers and staff in their own currency, as well as receiving payments in multiple currencies.

Wise payments are fast and secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get the mid-market exchange rate.

With Wise Business, you’ll also benefit from the following features:

• Issue business debit and expense cards for you and your team
• Cashback on eligible card spending
• Generate invoices and payment links to receive money easily from customers
• Access accounting integrations, batch payments and a powerful API
• Wise Interest - which lets you earn returns on balances held in GBP, USD and EUR.

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Wise works almost everywhere in Europe, and you can open an account with local account details in all of the cities mentioned in this list - and of course, anywhere in the UK.

Register with Wise Business🚀

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Sources used

1. The world's biggest startup campus – Station F
2. Join Europe’s largest and multicultural talent hub – CCI Paris
3. Amsterdam – Deal Room
4. Startup incubators and accelerators – I Amsterdam
5. Why are Dutchies so good at speaking English? – Dutch Review
6. How much does office space cost in Germany? – Work Around
7. Why Berlin? – Berlin Office USA
8. GründungsBONUS Plus – IBB Business
9. Inside Dublin – Nucamp
10. Fenergo creates 500 new jobs – Fenergo
11. Greater Zurich Area: The leading hub for your Fintech company – Greater Zurich Area
12. Swiss startups attract CHF 1.47 billion in first half of 2025 – GGB
13. Artificial intelligence in the Greater Zurich Area – Greater Zurich Area
14. Flights from Zürich (ZRH)) – Flight Connections
15. Banking and Frankfurt – Cigdem Guven
16. Pros and cons of starting a business in Zurich – Zuerchertreuhand
17. The startup ecosystem in Stockholm – Startup Blink
18. Best VCs in Sweden – Visible
19. Porto and Stockholm lead in 5G performance – IOT Insider
20. Report and pay employer contributions – Verksamt
21. Copenhagen – CNCA
22. Fast Track Scheme – NYI Danmark
23. Slush 2025 – Slush
24. Game business funding – Business Finland
25. The disadvantages of registering a business in Finland – Simengqifu
26. e-Estonia – e-Governance
27. Estonian e-residency program reaches milestone with 100000 members – Invest in Estonia
28. Tallinn Property – Investropa
29. The ultimate guide to Estonian e-residency – Nomad Gate
30. Italian cities can cut red tape – World Bank
31. Pros and cons of living and working in Athens –TTEC

Sources last checked: 29-Aug-2025