Starting A Business In Europe: The Best Countries For Expat Entrepreneurs

Many factors have to be considered when choosing a country to relocate to—especially if you plan to start a business in your destination country. From tax regulations and market potential to quality of life and infrastructure, finding the right location can play a major role in the success of your venture.

But where is the best country in Europe for entrepreneurs? To help answer this, we’ve analysed a wide range of indicators—from startup survival rates and coworking space availability to venture capital investment and workforce participation. Whether you’re looking to start fresh or move your business abroad, these insights will help you identify the most promising locations across the Europe.

In this article

• What makes a country ideal for expat entrepreneurs?
• What are the best countries for expat entrepreneurs in Europe?
• Top countries by entrepreneurial performance indicators

What makes a country ideal for expat entrepreneurs in Europe?

It’s possible to turn a profit, build a team, and maintain your business standards abroad—especially when you offer attractive employee benefits. But beyond the bottom line, factors like access to a skilled workforce, support for startups, and a thriving entrepreneurial ecosystem play a major role.

We explore which countries in Europe offer the strongest foundations for expat entrepreneurs—using data-led insights such as new business density, one-year survival rates, coworking spaces per capita, and levels of venture capital investment.

Why is it so important to offer employee benefits?

Find out more about attracting, retaining, and motivating top talent

What are the best countries for expat entrepreneurs in Europe?

The UK is the best country for expat entrepreneurs in Europe

1/ United Kingdom

Expat Entrepreneur Score: 8.66/10

The UK tops the list thanks to its balanced mix of opportunity, infrastructure, and investment. It has by far the highest venture capital investment in tech, with over £3 billion (US$4 billion) invested in startups headquartered in the UK, over £1 billion (US$2 billion) more than the second-highest country, Germany. 

Additionally, the UK ranked highly for new business density, with 18.62 new firms per 1,000 working people.

2/ Sweden

Expat Entrepreneur Score: 8.01/10

Sweden scores highly on business stability and workforce participation, with a 97.1% one-year survival rate, the best of any country listed. The country’s strong social systems and tech-forward infrastructure appeal to entrepreneurs looking for long-term growth.

Sweden also sees over US$750 million in venture capital investment and has 45 business owners on the Forbes Billionaires List.

3/ Netherlands

Expat Entrepreneur Score: 7.47/10

With the highest workforce participation rate (57.71%) of the top five and a solid 95.7% survival rate, the Netherlands provides a stable, well-connected economy for new startups. 

Its strong digital infrastructure and quality of life help explain why it consistently ranks as one of Europe’s best places for expat entrepreneurs.

4/ Switzerland

Expat Entrepreneur Score: 7.37/10

Switzerland combines high productivity with access to capital. While its survival rate is lower at 82%, it has substantial VC investment (US$879.5 million) and many successful business people.

Despite being a smaller market, Switzerland’s financial strength and business-friendly regulations make it a strong option for expat entrepreneurs.

5/ Cyprus

Expat Entrepreneur Score: 6.77/10

Cyprus punches above its weight for new business creation, with a high new business density (12.79) and a solid survival rate (87.8%). However, its venture capital investment is low (US$500,000), suggesting that gaining funding here is harder.

Cyprus is a rising startup destination, especially appealing to digital nomads and small business founders seeking a Mediterranean base with EU access.

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The top 10 best countries for expat entrepreneurs in Europe

Country

New business density

One-year new business survival rate

Population in the workforce

Venture capital investment

Coworking spaces per 100,000 people (total)

Business owners on Forbes Rich List

Expat Entrepreneur Score / 10

1/ United Kingdom

18.62

89.20%

51.39%

£3,150,000

5.5 (3773)

55

8.66

2/ Sweden

9.24

97.10%

54.16%

£567,150,000

1.4 (152)

45

8.01

3/ Netherlands

3.43

95.70%

57.71%

£383,700,000

2.0 (361)

13

7.47

4/ Switzerland

4.63

82.00%

57.33%

£659,625,000

2.8 (248)

42

7.37

5/ Cyprus

12.79

87.80%

57.42%

£375,000

2.1 (28)

10

6.77

6/ Norway

9.17

85.50%

55.11%

£41,250,000

1.3 (73)

17

6.29

7/ Iceland

12.07

73.50%

62.22%

£63,150,000

3.6 (14)

1

6.13

8/ Estonia

24.32

78.70%

54.57%

£70,275,000

1.6 (22)

2

6.08

9/ Luxembourg

18.90

86.70%

52.23%

£15,750,000

10.5 (70)

0

6.08

10/ Belgium

6.34

93.80%

45.38%

£182,700,000

1.5 (177)

11

5.97

Looking beyond Europe?

Explore the best countries to start a business worldwide

Top countries by entrepreneurial performance indicators

Some countries may not rank top overall but excel in areas that matter to entrepreneurs. Below, we highlight which European countries lead across key business categories— from startup density and survival rates to investment, infrastructure and workforce strength.

Let’s look at the top performers in each category…

Estonia has the highest new business density

New business density in Estonia: 24.32

The new business density is the number of new businesses per 1,000 of the working population. Estonia leads with 24.32, around 6 more businesses than second-placed Luxembourg (18.90) and the UK (18.62).

 

Sweden has the highest one-year survival rate for new businesses

One-year survival rate for new businesses in Sweden: 97.10%

The best country for entrepreneurship overall also has the highest survival rate for new businesses, with almost all new businesses surviving their first year (97.1%). Two other countries have a one-year survival rate over 95%, and these are the Netherlands and Hungary.

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Luxembourg has the most coworking spaces per 100,000 people

Number of coworking spaces per 100,000 people in Luxembourg: 10.5

While it may be one of the smallest countries in Europe, Luxembourg leads the continent in coworking spaces per capita, with 10.5 coworking spaces per 100,000 people. This far exceeds that of much larger nations, highlighting the country’s commitment to innovation, flexibility, and startup growth.

 

Hungary has the highest percentage of its population in the workforce

Percentage of population in the workforce in Hungary: 88.61%

Almost 9 in every 10 (88.61%) Hungarian people are considered to be in the workforce, the highest among all countries studied. Iceland, with nearly two-thirds (62.22%) of the population in the workforce, is in second place, and the Netherlands, with almost 3 in 5 (57.71%), is in third place.

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The UK has the most venture capital investment

Venture capital investment in the UK: £3.15 billion

In the modern world, technology is one of the most valuable and competitive industries, and startups in this field are thriving. In Europe, the UK has by far the most venture capital investment at £3.15 billion (US$4.2 billion), far more than second-placed Germany at £1.35 billion (US$1.8 billion) and third-placed France at £1.05 billion (US$1.4 billion).

 

Germany has the most people on the Forbes Rich List

Number of business owners on the Forbes Rich List in Germany: 121

Germany has produced the highest number of billionaires in Europe, with 121 people on the Forbes Rich List. Klaus-Michael Kühne, honorary chairman of the international transport company Kühne + Nagel, is the richest of these. Italy, with 74 people on the list, is in second place, and the UK is in third, with 55 people on the list.

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International benefits tailor-made for international employers

There has never been a better time to start a new business abroad. With William Russell you will always receive personal service from our dedicated account management team – we don’t have impersonal call centres, so you and your employees will get straight through to a human being who understands your policy.

We provide international employee benefits for groups of 3-9 employees, 10-39 employees and 40+ employees. Our range of health and protection plans are designed exclusively for expats and international businesses. Gain a competitive advantage with the right insurance benefits package for your employee relocation. Get in touch to find out more.

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with international employee benefits

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Methodology

Beginning with a list of European countries, we then removed any with incomplete data.

• New business density data was sourced from the World Bank.
• The one-year survival rate was sourced from the OECD.
• The number of coworking spaces was sourced from Coworker.
• The workforce population was also sourced from the World Bank.
• Tech venture capitalist investment was sourced from Dealroom.
• The number of billionaires was sourced from the Forbes Rich List.
• All currency conversions were made using XE.com in May 2025.

All data is correct as of 15th May 2025.

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