Which countries offer favourable terms to open a business in Europe
The deterioration of trade relations between major powers has led to instability in the financial and economic spheres. In the EU, this situation is further complicated by internal issues in several countries. Consequently, entrepreneurs who were planning to start a business in Europe are reconsidering their plans.
Many EU states continue to face inflationary pressures and high interest rates. This affects the amount of start-up capital required and makes further development more challenging. Despite these challenges, operating in the EU remains attractive. The government is interested in increasing the domestic production of goods and services, and it supports entrepreneurs. This will reduce dependence on external supplies. Financing programmes for small and medium-sized businesses are in place to support this area.
Entrepreneurs can count on the support of European funds and accelerators, such as the EIC Accelerator and the Horizon Europe programme. These initiatives support innovative projects and start-ups.
By the end of 2025, there will be around 35,000 early-stage startups in the EU. However, the business climate differs from country to country within the region, and this should be taken into account when starting a company. When choosing a jurisdiction, it is important to consider key parameters:
– conditions for obtaining construction and business permits;
– peculiarities of the company and its assets registration;
– the level of protection for minority investors;
– contract fulfilment efficiency;
– credit availability.
The optimal country for starting a business depends on your specific goals and conditions. A flexible approach and a well-thought-out strategy are key to taking advantage of the European market, even in times of instability.
Country overview
Euronews presented an overview of European countries offering favourable terms for business development.
Estonia is one of the most convenient countries for foreign entrepreneurs. Its business legislation is flexible. Additionally, the country has a high level of digitalisation of public and private structures. Company registration, tax reporting, and business management are all available online. This makes it possible to conduct business in Estonia without being physically present.
Ireland also has a favourable climate for entrepreneurs. The state agency Enterprise Ireland supports around 200 projects each year. The country is particularly attractive to foreign investors thanks to its simplified business registration system.
The Netherlands offers a variety of business support options. These include tax incentives, an entrepreneurial allowance, and the so-called 30% rule. The latter enables employers to pay foreign specialists a portion of their salary without taxation. This reduces the financial burden on businesses.
The UK provides comprehensive support to young companies during their first years of operation. This helps businesses to get through the formative stage. Additionally, the country has an active venture capital sector, making it easier for start-ups to access funding.
These countries demonstrate how a combination of digital solutions, government support, and flexible regulation can help businesses to grow.
