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

Starting or expanding your business in Europe gives you access to larger markets, skilled talent, and quick company setups. However, it takes more than fast registration to succeed. Some countries make it easier with business-friendly tax policies, strong access to funding, and flexible residency options.

This guide highlights the best countries in Europe for businesses to help you make the right decision. You'll also see how Wise Business can simplify and reduce the cost of sending and receiving payments across borders.

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The best countries in Europe for businesses: an overview

• The best countries in Europe to start a business offer quick company setup, strong digital infrastructure, and clear business rules.
• Tax incentives and startup visas in some European countries are making it easier to attract new ideas and talent.
• Cities such as Amsterdam and Stockholm have good access to skilled labor and capital.
• The availability of digital-first services and a friendly business culture mean that you can expand quickly if you select the right country.
• There is no one country that suits all businesses, so align your ambitions first before you choose where to start or expand.

What makes a city business-friendly?

Not all countries afford you the same chance of success. Before choosing a country to start or expand your business, think about what really makes life easier for entrepreneurs. Below are the factors that make countries business-friendly:

• Language and openness to foreigners: It is simpler to do business in a place where English is spoken widely or where there is a friendly attitude to foreign businesses. The local business culture also plays a role; some countries are more willing to cooperate and work with international partners than others. You’ll find it easier if the local mindset is positive about new businesses.
• Clear and stable business regulations: Stability is a big deal. You want a country where you can count on the rules not changing overnight, and you know what to expect in a year. Also, too many rules can slow you down, but a sensible legal environment keeps things fair without piling on. Countries with clear laws and straightforward compliance are much easier to navigate.
• Fair taxes: It’s not just about the lowest tax rate. A good business environment gives you clarity on what you’ll actually pay, offers some perks for small firms or innovation, and doesn’t sneak in extra costs.
• Skilled talent: The financial system of a city can be a game-changer. Find cities that have venture capital, angel investors and government grant programmes. Your progress can be accelerated by business incubators, accelerators, and local mentoring in startup hubs.
• Reliable infrastructure: Good infrastructure means high-speed internet, effective transport, and logistics. It also covers online tax filing and licensing as well as other digital public services. These save admin time and enable businesses to conduct easier operations across borders.
• Access to funding: Having access to investors and banks willing to back new ideas makes a real difference. The best countries for business have both private and public support, from venture capital to government grants.

The 10 best locations for business in Europe

Picking the right country in Europe can make all the difference for your business plans. Here’s a look at ten countries that stand out in 2025, each with practical reasons why you should consider them.

Germany

Quick Snapshot

• Market size & GDP: 83M+ consumers; 3rd largest economy globally; largest in EU
• Corporate tax & incentives: ~30% combined federal + municipal; R&D tax credits available
• Business setup speed & cost: GmbH can be formed with €1 share capital (2024 reform)
• Talent & workforce: Skilled Immigration Act lowered salary requirements; expanded shortage occupations; “Opportunity Card” for foreign workers
• Key sectors: Manufacturing, engineering, automotive, renewable energy

Germany offers access to 83 million consumers as the EU's biggest market and the world's third-largest economy.¹ The country has streamlined business formation significantly—you can now establish a GmbH company with just one euro in share capital, removing traditional barriers to entry.²

The revised Skilled Immigration Act makes hiring international talent easier by reducing salary requirements and expanding the list of shortage occupations.³ Combined with the new opportunity card system that simplifies work permits for skilled foreign workers, Germany has positioned itself as an accessible hub for growing businesses. These reforms mean faster access to specialized talent and fewer bureaucratic hurdles when building your team.

For entrepreneurs targeting the EU market, Germany's combination of market size, simplified setup process, and improved access to international talent makes it a strategic starting point for European expansion.

💡 Learn how to start a business in Germany

The Netherlands

Quick Snapshot

• Market size & GDP: 17.6M consumers; advanced digital economy
• Corporate tax & incentives: 15% up to €200K, 25.8% above; Innovation Box reduces to 9% for qualifying R&D
• Business setup speed & cost: Online registration available; fast incorporation process
• Talent & workforce: High English proficiency; startup visa for non-EU entrepreneurs
• Key sectors: Logistics, agri-tech, creative industries, fintech

The Netherlands combines strong digital infrastructure with competitive tax rates—15% on the first €200,000 and 25.8% on profits above that threshold.⁴ For innovative companies, the Innovation Box regime offers even greater advantages, reducing corporate tax to as low as 9% for qualifying R&D activities.⁵

The country actively courts international entrepreneurs through startup visa programs that simplify entry for non-EU founders. Amsterdam and other Dutch cities provide robust international business networks and deep talent pools, while the streamlined online registration process means you can establish your company quickly and efficiently.⁶

This combination of tax incentives, digital-first services, and international accessibility makes the Netherlands particularly attractive for businesses prioritizing speed to market and global reach. Whether you're launching a tech startup or expanding an existing operation, the Dutch ecosystem is designed to accelerate your growth.

💡 Learn how to start a business in the Netherlands

Sweden

Quick Snapshot

• Market size & GDP: Stable, innovation-driven economy; strong digital infrastructure
• Corporate tax & incentives: 20.6% corporate tax (among the lowest in Northern/Western Europe); favourable R&D tax credits
• Business setup speed & cost: Fast registration process available online or in person
• Talent & workforce: High-skilled labour force; streamlined entrepreneur work permit rules (2024 reform)
• Key sectors: Tech, fintech, clean energy, life sciences

Sweden remains an attractive destination to entrepreneurs because of the stable economy and a government that actively promotes innovation. Company registration is fast and flexible, available both online and in person.⁷ At 20.6%, Sweden offers one of the lowest corporate tax rates in Northern and Western Europe, complemented by generous R&D tax credits that reward innovative ventures.⁸

Stockholm has emerged as a major tech and fintech hub, backed by substantial public funding schemes and excellent digital infrastructure. The recent 2024 reforms to work permit rules have made it easier for international entrepreneurs to establish themselves in Sweden.⁹ All this, combined with a transparent legal system and strong protection for intellectual property, makes Sweden a smart pick for companies prioritizing stability, innovation support, and access to technical talent.

Denmark

Quick Snapshot

• Market size & GDP: Highly developed economy; strong startup ecosystem
• Corporate tax & incentives: 22% corporate tax; government grants for startups in green tech, robotics, AI, fintech
• Business setup speed & cost: Easy online registration
• Talent & workforce: High English proficiency; Fast Track visa scheme for skilled foreign workers
• Key sectors: Green tech, robotics, AI, fintech

Denmark combines ease of doing business with strong government support for innovation. Online business registration is straightforward, and with English widely spoken, language barriers rarely pose a problem. The Danish government actively funds innovation through grants, particularly favoring green tech, robotics, AI, and fintech sectors.¹⁰

The country's Fast Track Scheme streamlines international hiring, allowing companies to quickly bring in foreign talent when needed.¹¹ At 22% corporate tax and with a transparent, predictable legal system, Denmark minimizes bureaucratic friction while protecting business rights.¹²

This combination of accessible funding, simplified processes, and innovation focus makes Denmark particularly attractive for tech-forward businesses. Whether you're developing sustainable solutions or building AI applications, Denmark's ecosystem is structured to accelerate your growth while keeping administrative burdens minimal.

💡 Learn how to start a business in Denmark

Finland

Quick Snapshot

• Market size & GDP: Advanced digital infrastructure; strong innovation economy
• Corporate tax & incentives: R&D tax incentives; generous government funding via Business Finland
• Business setup speed & cost: Startup Permit for non-EU entrepreneurs (valid 2 years)
• Talent & workforce: Skilled workforce; fast-track residence permits in ~2 weeks
• Key sectors: Technology, gaming, innovation-driven industries

Finland pairs excellent digital infrastructure with substantial government backing for innovative businesses. Through Business Finland, companies can access generous grants and loans designed to fuel innovative projects and scale-up potential.¹³

The country's two-year Startup Permit opens doors for non-EU entrepreneurs whose business ideas show global growth potential.¹⁴ Combined with fast-track residence permits that deliver decisions within two weeks, Finland removes typical immigration delays that slow international expansion.¹⁵ You’ll appreciate Finland if a stable base for long-term growth is what you’re after.

This blend of funding access, streamlined permits, and digital-first infrastructure creates an ideal environment for businesses seeking stable, long-term growth. Finland particularly suits companies that value predictability and support over rapid scaling, offering a measured path to sustainable success.

💡 Learn how to start a business in Finland

Norway

Quick Snapshot

• Market size & GDP: Stable economy; high investment security
• Corporate tax & incentives: Simplified regulations; grants for green and sustainable projects
• Business setup speed & cost: Minimum share capital for limited companies reduced to NOK 30,000
• Talent & workforce: Well-educated labour force; sector expertise in tech, renewable energy, maritime
• Key sectors: Tech, renewable energy, maritime

Norway offers investment security and predictable growth in a stable economy. Recent regulatory reforms have simplified foreign ownership and reduced the minimum share capital for limited companies to just NOK 30,000, making market entry more accessible.¹⁶

The country's well-educated workforce brings particular expertise in tech, renewable energy, and maritime sectors. Norwegian state agencies provide targeted innovation funding through grants, especially for sustainability and green initiatives, aligning financial support with the country's environmental priorities.

While the cost of living runs high, Norway compensates with straightforward regulations and strategic market access. Despite not being an EU member, the country provides excellent access to both EU markets and international trade routes. For businesses in cleantech or maritime technology, Norway's combination of sector expertise, funding support, and stable operating environment offers compelling advantages that often outweigh the higher costs.

💡 Learn how to start a business in Norway

Ireland

Quick Snapshot

• Market size & GDP: Open, pro-business economy; EU and Eurozone access
• Corporate tax & incentives: 12.5% corporate tax; generous R&D tax credit
• Business setup speed & cost: STEP programme for non-EEA entrepreneurs
• Talent & workforce: English-speaking; tech and life sciences talent hub
• Key sectors: Technology, life sciences, financial services

There's a wealth of reasons why many entrepreneurs and startup founders are starting or expanding their business in Ireland. Ireland has built its reputation as Europe's pro-business hub with one of the continent's lowest corporate tax rates at 12.5%.¹⁷ Dublin has become a magnetic center for both startups and tech giants, hosting the European headquarters of Google, Meta, and Stripe, creating a rich ecosystem of talent and opportunity.¹⁸

The Start-Up Entrepreneur Programme (STEP) provides a pathway for non-EEA nationals to establish innovative businesses while securing long-term residency.¹⁹ Combined with generous R&D tax credits, Ireland actively incentivizes innovation and growth.²⁰

Operating in English as the primary business language and holding full EU and Eurozone membership, Ireland offers seamless access to the European single market without language or currency barriers. This combination of tax efficiency, established tech presence, and European market access makes Ireland particularly attractive for technology and life sciences companies looking to establish or expand their European operations.

💡 Learn how to start a business in Ireland

Estonia

Quick Snapshot

• Market size & GDP: Digital-first economy; small population with high tech adoption
• Corporate tax & incentives: 0% tax on retained/reinvested profits; 22% on distributed profits
• Business setup speed & cost: Register a company online in under a day via e-Residency
• Talent & workforce: English widely spoken; strong government support for innovation
• Key sectors: Tech startups, e-governance, digital trade

Estonia has established an international reputation as one of the most digital-friendly business countries in Europe.²¹ The e-Residency programme allows anyone in the world to start a fully remote EU business and it takes entrepreneurs less than a day to register a company online.²² The corporate tax system in Estonia is also rather peculiar, as the profits are not taxed as long as they are reinvested or retained, but 22% is charged on distributed profits.²³

The country is a leader in digital public services in the EU and has high scores in ease of cross-border trade, digital contracts, and secure e-signatures.²⁴ It is a good place to start tech startups, and Tallinn is frequently listed as one of the best startup cities in Europe. Business is conducted largely in English, and the government is very active in encouraging innovation with grants. Go with Estonia if running your business fully online appeals to you.

💡 Learn how to start a business in Estonia

Switzerland

Quick Snapshot

• Market size & GDP: Stable, high-income economy; strategic European hub
• Corporate tax & incentives: Competitive corporate tax; canton-level R&D incentives
• Business setup speed & cost: LLC or joint-stock company registration in ~2 weeks
• Talent & workforce: Highly skilled workforce; strong IP protections
• Key sectors: Tech, life sciences, finance

Switzerland is a business-friendly country because of its stable political environment and legal system. Corporate tax rates are competitive, and certain cantons offer additional tax incentives on new investments or R&D.²⁵ There’s also an efficient and transparent legal environment with high levels of protection of intellectual property, making it especially attractive to tech and life sciences.

The process of establishing a company is comparatively fast, and the registration of LLC and joint-stock companies is usually made within two weeks.²⁶ Switzerland is a strategic hub to expand because of its well-developed infrastructure, stable banking system, and its closeness to the large European markets. These factors, coupled with the good quality of life, still appeal to startups and established companies seeking long-term stability.

💡 Learn how to start a business in Switzerland

France

Quick Snapshot

• Market size & GDP: Large, diversified economy; leading EU tech hub
• Corporate tax & incentives: 25% corporate tax; generous R&D tax credit
• Business setup speed & cost: Streamlined registration and visa processes for founders
• Talent & workforce: Strong innovation culture; venture funding leader in EU
• Key sectors: Technology, innovation, creative industries

France is one of the best destinations for entrepreneurs, and the tech ecosystem is expanding with a high drive towards innovation. The French government has reduced the corporate tax to 25% and provides a large R&D tax credit, which is attractive to both startups and established companies.²⁷

Paris is the leader in venture funding, and the French government has introduced its own programme called the La French Tech, which has simplified the process of international entrepreneurs launching and expanding.²⁸ France has also accelerated business registration and visa procedures for founders in the past few years.

💡 See the full guide to epxanding business in France

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

Some countries in Europe make it difficult for new businesses. For example, Italy is notorious for its bureaucracy, complex paperwork, and high corporate tax²⁹ which can make the setup process a long affair. Malta and Cyprus have certain tax advantages, but also have issues such as corruption, restrictive income rules and smaller markets that can restrict growth opportunities.³⁰ ³¹

It’s smart to research requirements early and factor in extra time for setup if you’re considering any of these countries.

Top tips to expand to Europe

Starting or expanding in Europe means planning ahead and knowing the essentials. Here are a few things to keep in mind before you make your move:

• Get your company set up right: Business types and requirements vary throughout Europe, so make sure to research what is common in the country you are targeting because what’s normal in Germany may not be normal in Estonia or Portugal. This decision will determine how much you will pay in taxes, your liability, and employment opportunities.
• Sort your finances and open a business account early: Local banks often want to see proof of funding and may have a slow onboarding process. With Wise Business, you can open an account remotely, hold 40+ currencies, and send funds internationally without the usual high fees.
• Understand registration and tax rules: The tax rates, reporting, and permits may vary between countries. Consider consulting a local accountant or advisor who knows the ropes to prevent delays or compliance headaches.
• Build your network immediately: Attending business groups, local chambers, or industry meetups will provide you with first-hand knowledge and possibly even find you your first customers. Ground connections are usually worth more than any Internet research.

💡 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 countries mentioned in this list - and of course, the UK.

Register with Wise Business🚀

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Sources used:

1. Germany: Market overview – International Trade Administration
2. The share capital in Germany – Liesegang and Partner
3. The new Skilled Immigration Act – Make it in Germay
4. Taxation in the Netherlands – PWC
5. Innovation incentives in the Netherlands – Kreston Global
6. Foreign company registration – Business Gov
7. Set up a limited company – Bolagsverket
8. Swedish business tax system – Nordic HQ
9. Sweden proposes new legislation to attract highly qualified workers – DLA Piper
10. Innovation and collaboration in Denmark – Tech EU
11. Fast Track Scheme – New to Denmark
12. Denmark corporate tax – PWC
13. Finland tax credits and incentives – PWC
14. Finnish Startup Permit – Business Finland
15. Fast track – Finnish Immigration Service
16. Fundamentals of Norwegian company law – Lawyer Norway
17. Ireland delivers – KPMG
18. Inside Dublin – Nucamp
19. Start-up entrepreneur programme – Irish Immigration
20. R&D tax credits – Company Formations
21. Estonian IT sector recognized as the most competitive – Invest in Estonia
22. e-Residency – Republic of Estonia
23. Corporate Income Tax in Estonia – Invest in Estonia
24. Estonia is the e-governance leader in Europe – e-Estonia
25. Switzerland Corporate Tax – Tax Summaries
26. Open a company in Switzerland – Bridge West
27. Tax incentives – Imports
28. French AI startups – IBM
29. Italian business and the burden of fiscal bureaucracy – Avantune
30. 2024 Investment climate statements Malta – US Department of State
31. Cyprus investment climate statements – US Department of State

Sources last checked: 28-08-2025