Business in Europe: which countries are better to choose for starting your own business in 2023
Over the past few years, the number of companies opened by foreigners in EU countries has increased significantly. We tell you what European countries attract entrepreneurs and where it is best to open your own business
Opening your own business in Europe has many advantages, which is why the number of businesses registered in the EU is growing noticeably every year. Experts predict that this trend will continue in 2023. Registering a company in Europe will be interesting for both large businesses and private companies seeking to optimize business costs.
Read everything you need to know about the European work visa here.
Advantages of business registration in European countries
Doing business in Europe has a number of advantages, including:
An economically stable and prestigious country
European companies have a positive business reputation, and the governments of most countries actively support business: subsidies, development programs and tax discounts for small and medium-sized businesses.
You can optimize your tax burden by opening a business in a country with more optimal tax conditions. For example, the corporate income tax rate in Turkey is 20%, in Cyprus it is 12.5%, and in Madeira (Portugal) it is only 5%.
Possibility to open a bank account in Europe
The procedure for opening an account in European banks is becoming more complicated every year. Instead, a businessman who registers a business in Europe will have a real opportunity to open a bank account in Portugal, Spain, Italy, Cyprus, etc.
Business entry into the international market
Most foreign counterparties prefer companies from developed and economically stable countries.
Grants and lending for small businesses
In many European countries, startup development programs for small and medium-sized businesses have been developed.
Registration of permanent residence
Opening a business is one of the ways of immigration. If certain requirements are met, the businessman and his family will be able to obtain a permanent residence and in the future, EU citizenship.
Would you like to receive an answer from an experienced lawyer? Order legal advice from a local specialist in visa and migration issues. To receive the service, select the country you are interested in and your citizenship.
What should you pay attention to when choosing a European country for opening a business?
When choosing a country, you should use a comprehensive approach, because there is no single state in the world that would meet all the requirements of every businessman. First of all, it is necessary to study corporate, tax and immigration laws in detail and compare them with the goals that are a priority.
Experts recommend paying attention to the following criteria when choosing a country:
This is probably one of the most important factors when choosing a country to start a business. Preference should be given to states with lower taxes than in the entrepreneur's home country, and the system itself works efficiently and transparently. It will also examine in more detail the following factors: benefits for new firms, non-resident businesses, small and medium-sized businesses and avoidance of double taxation.
Expenses for business registration and its further activities
Find out about the minimum authorized capital for different types of companies, as well as the average salary, the cost of office rent, banking services and more.
Absence of the country in "black" lists
Certain international organizations and individual countries maintain "black lists" of unreliable financial jurisdictions. Registering a business in such a state can cause a number of problems - mistrust on the part of counterparties from the EU, additional checks in banks, etc.
Air connections with the country of residence
A significant distance from the state of residence can create additional difficulties for a businessman.
Top 3 countries for business registration in the EU
The following countries are the most attractive for opening a new business in terms of economic stability, simplified taxation system and quality of life in the EU:
Learn more about how to move your business to another country here.
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