The 10 best European countries for expats to launch a business in 2025

Thinking of ditching the 9-to-5 and launching your dream startup abroad? Europe might be your best bet — but which country shall you call home?

A new ranking reveals the top destinations where expat entrepreneurs are most likely to thrive in 2025.

The analysis, compiled by international insurance provider William Russell, scored 10 European countries across six equally weighted metrics: startup density, one-year survival rates, venture capital investment, coworking infrastructure, workforce participation, and billionaire founder count.

William Russell evaluated each country’s performance using a percentile-based scoring system, assigning a score from 0 to 10 for each metric. The team then averaged those scores to calculate the final “expat entrepreneur score.”

All figures reflect the most recent data available as of May 15, 2025, drawn from sources including the World Bank, OECD, Dealroom, Coworker, and the Forbes Rich List.

10. Belgium

Expat Entrepreneur Score: 5.97/10

Belgium performs well on survival (93.8%) and offers a decent slice of VC funding (£182.7 million, or about $247,9 million), but having a low workforce participation (45.38%) and hiring complexity can pose challenges.

William Cooper, marketing director at William Russell, pointed to “relatively high employment costs” and “regional differences in the job market” as key factors that may “slow down hiring.”

That said, the country’s central location and infrastructure make it a strong launchpad. “Its proximity to EU institutions gives founders easy access to international markets,” Cooper said.

“The key for expat entrepreneurs is to plan ahead for hiring, especially if their business model relies on scaling teams quickly,” he added.

9. Luxembourg

Expat entrepreneur score: 6.08/10

Luxembourg has Europe’s highest number of coworking spaces per capita (10.5 per 100,000 people) — a sign of its remote-friendly and small-team appeal.

Its business density is high, but venture capital remains modest at £15.75 million, or about $21.3 million.

According to Cooper, the country’s strengths lie in its flexibility and strategic location.

“Luxembourg’s position at the heart of Europe and multilingual workforce” make it an ideal base for founders who want access to neighboring markets “without committing to the overheads of a major city.”

“It’s an ecosystem designed for flexibility and speed rather than large-scale operations,” he said.

8. Estonia

Expat Entrepreneur Score: 6.08/10

Estonia has built a startup engine around its digital-first infrastructure. It leads the continent in new business density — 24.32 per 1,000 people — and much of that is driven by policy.

“Estonia’s e-Residency program, combined with streamlined digital administration, likely plays a significant role,” Cooper said. It helps “remove friction for both local and foreign founders.”

Running a business “entirely online” is easy in Estonia. But replicating that success elsewhere, Cooper added, would require “political motivation” and a “trusted digital infrastructure.”

7. Iceland

Expat entrepreneur score: 6.13/10

Iceland’s startup creation rate is high — 12.07 per 1,000 workers — and it has one of the most active labor forces in Europe. But many startups don’t last: its 73.5% survival rate is the lowest among the top 10.

Cooper said it’s “hard to pinpoint one particular reason” for the high failure rate. But he said Iceland’s “size and relative isolation” likely play a role.

“The churn of new businesses being created vs those that last may be indicative of small ventures launching quickly but facing challenges scaling beyond the domestic market,” he added.

6. Norway

Expat entrepreneur score: 6.29/10

Norway combines a stable workforce, a decent business density, and strong digital connectivity.

It has room to grow in venture funding — just £41.25 million ($55 million) in 2025 — but offers institutional support and high living standards that appeal to expats with families.

Cooper said Norway is able to “successfully offset” its smaller private venture capital market with public funding, including innovation grants from local governments and sector-specific public funds in key markets such as green tech and the maritime industry.

5. Cyprus

Expat entrepreneur score: 6.77/10

Cyprus has one of the highest new business densities in Europe (12.79) and a healthy survival rate of 87.8%.

However, its low levels of venture capital make it better suited to bootstrapped businesses or remote-first teams.

While Cooper cited residency incentives, tax regimes, and the Mediterranean climate and lifestyle as “appealing factors,” he said Cyprus’s lack of local capital funding means “any would-be entrepreneurs must rely on foreign investment or choose to ‘bootstrap’ in the early years, lowering its overall appeal.”

4. Switzerland

Expat entrepreneur score: 7.37/10

Though Switzerland’s 82% survival rate lags behind peers, it boasts financial strength and access to capital, with high levels of VC investment.

Regulatory efficiency and a deep pool of high-net-worth individuals make it a reliable choice for high-end ventures.

“Switzerland has fierce competition and high living costs, which, coupled with tricky rules and regulations to navigate, can erode a business’s runway,” said Cooper. “Especially for expat founders who may not be as familiar with local compliance laws.”

3. The Netherlands

Expat entrepreneur score: 7.47/10

The Netherlands combines a high workforce participation of 57.7% with a robust startup survival rate of 95.7% and efficient digital infrastructure.

Its startup hubs, especially Amsterdam, draw talent and investment from across the continent.

While its new business density is lower than average at 3.43, it compensates with excellent quality of life and ease of doing business.

“The Netherlands’ sustainability leadership comes from long-term green investment policies,” Cooper said, “but cultural and economic preference for secure, long-term employment may dampen the appetite for high-risk ventures such as starting a new business.”

2. Sweden

Expat entrepreneur score: 8.01/10

Sweden has quietly built one of the most founder-friendly environments in Europe, combining generous public support with a deeply networked innovation system.

It has the highest survival rate in the ranking — 97.1%, suggesting new ventures have staying power.

Tech giants like Klarna and Spotify were founded in the country.

“Strong government grants, tax breaks for research and development, and close ties between universities and industry give startups the tools they need to last,” Cooper explained.

“Add in a social safety net that takes away some of the personal risk, and it’s easy to see why so many new ventures might find Sweden to be a safer bet than other countries on the list.”

1. United Kingdom

Expat entrepreneur score: 8.66/10

With its massive venture capital ecosystem and strong entrepreneurial pipeline, the UK leads the list — and not just because of deep pockets.

Startups headquartered in Britain attracted over £3.15 billion, or $4.22 billion, in tech VC funding in the most recent calendar year, more than any other country in Europe.

But capital is only part of the story. The UK also has one of the highest startup densities, with 18.62 new businesses per 1,000 workers, and a solid one-year survival rate of 89.2%.

“While it does lead by a big margin in venture capital volume, and it’s certainly a major factor, the UK’s top position overall isn’t solely driven by this, as it also scores highly for a number of other factors,” said Cooper.

With “one of the highest new business densities, a strong one-year business survival rate, a high number of Forbes-listed business owners,” Cooper said, “the UK’s lead shows that it’s broadly strong across all categories.”

The post The 10 best European countries for expats to launch a business in 2025 appeared first on Business Insider.