Quote from Alex bobby on May 11, 2025, 4:51 AM

Best European Countries to Set Up a New Business in 2025: Euronews Report

Starting a new business in Europe can be a daunting challenge, especially in today’s unpredictable economic climate. Escalating trade tensions between the EU and global economic powers such as the US and China have led to increased volatility across markets. Meanwhile, sticky-high inflation, elevated interest rates, and a continuing cost of living crisis have eroded startup capital and consumer confidence. In this complex environment, entrepreneurs are faced with tough decisions about where to launch their ventures.

Despite these challenges, Europe still presents several opportunities for budding founders. The European Union has doubled down on efforts to boost domestic production and reduce reliance on foreign imports by actively supporting the growth of small and medium enterprises (SMEs). This includes financial and mentoring programs such as the EIC Accelerator, Horizon Europe, Women TechEU, and the Erasmus for Young Entrepreneurs. According to the European Commission, the EU is home to around 35,000 early-stage startups in 2025.

• Starting a business
• Dealing with construction permits
• Getting electricity
• Registering property
• Getting credit
• Protecting minority investors
• Paying taxes
• Trading across borders
• Enforcing contracts
• Resolving insolvency

When evaluating which country offers the most favourable environment for new businesses, entrepreneurs should consider key factors like tax policy, regulatory ease, access to finance, skilled labor, and market accessibility. Euronews has analysed several European countries that stand out in these areas.

1. Estonia: Digital-First and Founder-Friendly

Estonia has earned a reputation as one of the most business-friendly countries in the EU, particularly for digital entrepreneurs. Thanks to its pioneering e-residency program, non-residents can register a company and access Estonian government services entirely online—no physical presence required.

Setting up a business takes as little as 15 minutes, and 98% of companies are registered online. Estonia’s corporate tax structure further benefits entrepreneurs by not taxing retained profits, thereby encouraging reinvestment. Its low bureaucracy and strategic location make it ideal for startups looking to tap into both Baltic and wider EU markets.

2. Ireland: Tech-Savvy and Tax-Attractive

Ireland continues to attract global and local entrepreneurs alike, thanks to a combination of high digital penetration, low corporate tax (12.5%), and an English-speaking, well-educated population. Enterprise Ireland invests in approximately 200 startups annually, and cities like Dublin, Cork, and Galway rank high for business-friendly processes such as enforcing contracts and registering property.

Ireland’s membership in the EU, Eurozone, and OECD further boosts its appeal. Entrepreneurs from EU/EEA countries can set up businesses with minimal red tape, and Ireland’s Double Taxation Treaties with 72 nations make it an attractive base for international operations. However, the country’s ongoing housing crisis may pose logistical issues for new businesses hiring foreign staff.

3. Bulgaria: Low Costs and Strategic Location

For entrepreneurs looking for affordability, Bulgaria presents an enticing option. Company registration is straightforward and often completed within two weeks. The corporate tax rate is just 10%, and operational costs are significantly lower than in Western Europe.

Bulgaria’s location in Southeastern Europe offers convenient access to major markets like Greece, Turkey, and Central Europe. It also benefits from low-cost, multilingual labor and allows remote company registration. However, issues such as corruption may require due diligence depending on the sector and region of operation.

4. Netherlands: Innovation Powerhouse in Western Europe

The Netherlands is the EU’s fifth-largest economy and a hub for innovation, particularly in technology, robotics, and AI. With a GDP nearing €920 billion, the country offers a skilled, multilingual workforce and strong infrastructure. Government schemes like the 30% ruling for foreign workers and support for R&D make the Netherlands a haven for startups.

Although its corporate tax rate (25.8%) is higher than in some other EU nations, the country’s location, logistical strengths, and access to the single market often offset the costs. Dutch cities like Amsterdam and Rotterdam are also key entry points for international trade.

5. Denmark: Simplicity and Trust-Based Business Culture

Denmark consistently ranks among the top countries in the World Bank’s Ease of Doing Business index. Founders can register their businesses online in a matter of hours, thanks to a digitally advanced and transparent bureaucracy.

With a strong rule of law, a flexible labor market, and a corporate tax rate of 22%, Denmark supports a healthy business environment. The country’s trust-based culture also reduces legal and transactional friction, making it easier to build reliable partnerships and avoid lengthy contractual negotiations.

6. United Kingdom: Resilient and Investor-Friendly

Despite Brexit and ongoing political uncertainty, the UK remains a popular launchpad for businesses. It boasts a diverse economy, strong legal framework, and a highly educated workforce. Registering a company is quick and affordable, often taking less than 24 hours online.

Startups benefit from numerous funding opportunities, including venture capital, angel investors, crowdfunding, and government grants. Although the UK’s corporate tax rate (25%) is on the higher end, relief is available for small businesses and through schemes like R&D tax credits and asset sales.

Final Thoughts

While economic uncertainty is certainly a barrier, Europe still offers fertile ground for entrepreneurs willing to navigate its complex landscape. Countries like Estonia and Denmark make it easy to start a business quickly and affordably, while Ireland and the Netherlands offer advanced ecosystems for innovation-driven ventures. Bulgaria’s cost efficiency and the UK’s robust support networks also stand out.

Ultimately, the right location will depend on your business model, sector, target market, and long-term growth goals. But even in tough times, Europe continues to provide strong infrastructure and support for the next generation of business leaders.