Top 10 European Nations for Expats to Start a Business in 2025

Are you contemplating leaving the traditional 9-to-5 grind to pursue your entrepreneurial dreams abroad? Europe could be your ideal destination—but which nation should you choose?

Recent evaluations reveal the most promising European countries for expat businesspeople in 2025.

This study, conducted by the global insurance company William Russell, assessed ten European nations based on six balanced parameters: the density of startups, one-year business survival rates, venture capital influx, coworking space availability, workforce engagement, and the presence of billionaire founders.

Each country's performance was measured through a scoring system from 0 to 10, and the final 'expat entrepreneur score' was computed by averaging these scores.

Data reflects the most current statistics available as of May 15, 2025, sourced from the World Bank, OECD, Dealroom, Coworker, and the Forbes Rich List.

10. Belgium

Expat Business Index: 5.97/10

With an impressive 93.8% business longevity and good venture capital availability (£182.7 million or around $247.9 million), Belgium presents strong prospects. However, low workforce involvement (45.38%) and complicated hiring processes can be challenges.

William Cooper from William Russell highlights high employment expenses and local job market differences as potential hindrances to recruitment.

Nevertheless, Belgium's strategic positioning and robust infrastructure offer a solid foundation for business. Its closeness to EU agencies provides entrepreneurs with smooth market access.

Cooper advises expats to strategize their hiring needs, especially if rapid team expansion is vital to their business.

9. Luxembourg

Expat Business Index: 6.08/10

Luxembourg tops Europe in coworking spaces per capita (10.5 per 100,000 people), appealing to remote and small team setups.

Although business density is notable, venture funding remains limited at £15.75 million, or roughly $21.3 million.

Cooper points out that Luxembourg's strengths lie in its adaptable system and prime location.

Its central European positioning and multilingual talent pool are attractive for founders targeting neighboring markets without high city expenses.

Luxembourg offers a framework ideal for rapid and adaptable business operations over grand-scale projects.

8. Estonia

Expat Business Index: 6.08/10

Estonia has cultivated a vibrant startup ecosystem thanks to its digital-first infrastructure—boasting Europe's highest new business density of 24.32 per 1,000 people, largely propelled by policy.

Cooper attributes this to Estonia's e-Residency initiative and streamlined digital administration, which reduce barriers for entrepreneurs, both local and international.

The ability to manage a business entirely online is straightforward here, although replicating this model elsewhere needs political backing and dependable digital systems.

7. Iceland

Expat Business Index: 6.13/10

Iceland has a high rate of startup creation at 12.07 per 1,000 workers, supported by a very active labor force. Yet, many businesses don't endure, with just a 73.5% survival rate.

Cooper notes it's challenging to determine one single cause for this high failure rate, suggesting Iceland's geographic and demographic factors influence this dynamic.

The frequent creation of startups, juxtaposed with their closure rates may hint at small-scale ventures outpacing their capacity to grow beyond domestic boundaries.

6. Norway

Expat Business Index: 6.29/10

Norway balances a stable workforce, business presence, and advanced digital connectivity effectively.

Venture capital is £41.25 million ($55 million), indicating room for growth, yet Norway offers institutional backing and excellent living conditions, proving attractive to expat families.

Cooper explains Norway adeptly supplements its limited private venture capital market with public resources, including local innovation grants and funding for sector-specific industries such as green technology and maritime.

5. Cyprus

Expat Business Index: 6.77/10

Holding one of Europe's highest densities of new enterprises (12.79) and a healthy 87.8% survival rate, Cyprus shines in business creation.

However, lower venture capital levels make it more suited to self-funded or digitally distributed teams.

Although Cooper highlights attractive residency benefits, favorable taxes, and appealing Mediterranean lifestyle, he emphasizes that the lack of local capital means entrepreneurs often need to seek external funding, impacting its overall allure.

4. Switzerland

Expat Business Index: 7.37/10

Despite a slightly lower survival rate of 82%, Switzerland benefits from solid financial backing and ample access to VC investments.

Its regulatory efficiency and affluent populace make it a sound choice for premium businesses.

Switzerland's intense competition and living expenses, compounded with complex regulations, can challenge new businesses, particularly those unfamiliar with local law.

3. The Netherlands

Expat Business Index: 7.47/10

With high workforce involvement at 57.7% and a notable startup success rate of 95.7%, along with robust digital infrastructure, the Netherlands is an expat business haven.

Amsterdam, among other hubs, attracts broad talent and digital investment.

Though its new business saturation is a modest 3.43, its superior living quality and business environment offset this, with sustainability leadership driven by enduring green policies.

2. Sweden

Expat Business Index: 8.01/10

Sweden has subtly established Europe's most entrepreneur-friendly setting, supported by generous public funding and a collaborative innovation network.

Leading the rankings, Sweden's 97.1% survival suggests robust business longevity—tech multinationals like Klarna and Spotify have roots here.

Extensive government grants, R&D tax incentives, and university-industry connections equip startups for success.

Its social safety frameworks lessen personal risk, favoring Sweden as a strategic international business base.

1. United Kingdom

Expat Business Index: 8.66/10

Dominating the list, the UK offers an expansive venture capital scene and robust startup pipelines.

British-based startups amassed over £3.15 billion or $4.22 billion in tech VC last year, unrivaled in Europe.

Yet, venture capital isn't the sole factor; with a surge in business formation—18.62 new firms per 1,000 workers—and a strong 89.2% survival rate.

Besides high venture capital value driving its lead, the UK's broad strengths across numerous criteria consolidate its top status. It's championed by a densely packed new business scene, improved survival rates, and a notable roster of Forbes-listed moguls.