The European Union’s relations with the United States and China have significantly affected the stability of markets, raising concerns for those looking to invest or start new businesses in Europe.
However, there is still a glimmer of hope for founders, as the EU has focused more on increasing domestic production of goods and services in an effort to reduce its dependence on foreign countries.
According to the European Commission, the EU will have around 35,000 start-ups by 2025.
The ease of doing business in a country depends on a number of key factors.
The World Bank index has categorized these factors into 10 dimensions:
- Starting a business
- Applying for a building permit
- Getting electricity
- Registering property
- Getting credit
- Protecting minority investors
- Paying taxes
- Transacting across borders
- Enforcing contracts
- Resolving insolvency
Here are the regions of Europe where founders might have relatively easier access to starting a business in the current economic environment.
Estonia-EU: Digital Entrepreneurship Pioneer
Estonia has established itself as one of the most innovative countries in the digitalization of the business environment.
Through the e-Residency program, it offers the opportunity for non-residents to establish a company within minutes via the internet.
98% of businesses in the country are established digitally, while its tax system encourages the reinvestment of profits, exempting what remains in the company from taxation.
The minimal level of bureaucracy and the digital management of every transaction make it ideal for start-ups, especially in the technology sector.
Ireland-EU: High-tech economy and tax advantages
Ireland offers an extremely friendly business environment, with a tax rate of just 12.5%, and strong support structures for start-ups, through bodies such as Enterprise Ireland.
The country’s cities offer efficient procedures for issuing permits and registrations, while its highly digitalized population profile facilitates the development of digital products.
In addition, Ireland remains accessible to EU citizens without a visa, which offers flexibility to European entrepreneurs.
Bulgaria-EU: Low costs, high potential
Bulgaria is emerging as an entrepreneurship hub for Eastern Europe. Setting up a business is simple, administrative costs are low, and the tax rate is highly competitive at 10%.
Companies can be registered remotely, and access to a skilled, multilingual, and affordable workforce is a major advantage.
Its geopolitical location facilitates trade with the Balkans and Turkey, making it ideal for businesses aiming for regional development.
However, corruption remains a challenge in some areas.
Netherlands-EU: Innovation and Market Access
The Netherlands is an economic giant in Europe and a hub for high-tech businesses, especially in the fields of artificial intelligence and robotics.
Despite the highest corporate tax rate (25.8%), its strategic location, government subsidies for R&D and the “30% ruling” policy for foreign workers make it highly competitive.
The state actively supports innovation through subsidies, and its highly educated workforce enhances the viability of new ventures.
Denmark-EU: Entrepreneurship based on trust
Denmark stands out for its transparency and ease of doing business, which are crucial for young entrepreneurs.
Company registration procedures are fast and digitally accessible, while its legal and business environment offers stability and flexibility.
The culture of collaboration and trust reduces operating costs, while the tax regime (22%) is competitive in relation to the services and quality of life offered by the country.
It is an excellent choice for social enterprises or innovative models that require support in human capital.
United Kingdom: Despite the challenges, it remains strong
Despite Brexit, the United Kingdom continues to be an attractive destination for businesses, due to its strong legal framework and access to financing tools such as crowdfunding and venture capital.
Starting a business is fast (up to 24 hours for online registration) and the government offers tax incentives, especially for new and innovative businesses.
The corporate tax rate is 25%, but the UK market remains attractive for companies aiming for international expansion.
Finding a base in Europe
Amid an uncertain geopolitical and economic environment, Europe continues to offer excellent opportunities for young entrepreneurs.
From the fully digitalized processes of Estonia to the fiscal stability of Ireland and the geostrategic importance of Bulgaria, the options are many and varied.
The right country depends on the needs, the sector of activity and the profile of the entrepreneur.
The only certainty is that, with the right preparation, Europe remains one of the most promising ecosystems for business development in 2025.
