Investing in a new business at home can be difficult at the best of times, but it can be even trickier when you want to begin new business ventures overseas.
Not only do you have to consider all the regular obstacles associated with new business opportunities, you’ll be faced with a whole host of other hurdles imposed by local laws and business regulations.
Of course, an experienced and well-prepared entrepreneur will already be considering these well before they decide where best to invest their capital. The bigger question is deciding which country to invest your new business money in to begin with.
Using data garnered from a variety of statistical websites, such as Statista, we ranked 31 countries across Europe as the best places to invest in new business, based on the percentage of the population with university degrees, average net salary, corporate tax rate, cost of living, and office renting cost per square metre.
We analysed and assigned a value of 1-5 for each factor, each factor being weighed differently. For example, low corporation tax and higher degree percentage in the population would have scored higher.
We then ranked our select countries based on which had the highest score overall when the score of our 5 chosen factors were combined together.
It’s important to note that this ranking is not to say the countries at the bottom of our list are poor investment choices. This is merely representative of what our data says, and it may be that investments in these countries are better suited to things besides new business investments.
So, without further ado, here are our top countries in Europe for new business entrepreneurs.
Eastern Europe and the Baltic countries are the most promising
One place new business can thrive is in those nations whose economies are rising quickly to begin competing with those of well-known countries, like France and the UK. Interestingly, the majority of our top countries sat firmly in Eastern Europe.
At the top of our ranking for promising countries for new business entrepreneurs is Lithuania. With a corporate tax rate of just 15%, and low office renting costs, establishing, and turning a profit with a new business could be simpler than anticipated.
Next up, we have Cyprus and Bulgaria. Cyprus has an even lower corporate tax rate, just 12.5%, but its higher cost of living puts it just below Lithuania. Bulgaria, on the other hand, sits in third place due to its low degree percentage. However, all three countries could make prime new business investment opportunities.
Following the top three, we have Hungary, and Lithuania’s fellow Baltic countries, Estonia and Latvia. Low cost of living is one of the key reasons why these countries are ranked so highly, ensuring entrepreneurs will have more money to put towards their new business venture.
Lastly, the rest of our top list is filled out by Poland, Slovenia, Romania, and Croatia. Much like our other top nations, low corporate tax and living costs are key factors in their potential. But like Bulgaria, many of these countries are held back by a low prevalence of degrees.
Countries offering the lowest rent costs and corporate tax
If you’re not concerned about living costs and degree prevalence, then the following countries might catch your interest as potential investment locations.
Besides Cyprus and Hungary, some of the countries with the lowest rent costs include Malta, Slovakia, and the Netherlands. Paying lower costs for good office space is always helpful for a new business, allowing you to invest resources elsewhere.
And if you want to save funds on corporate tax, then Ireland, Switzerland, and the Czech Republic make for good options outside of the top ten.
Countries that are ideal for investments outside of new business
While new business ventures are always a welcome addition in any country, many larger nations that are big on the world stage could have a range of other established businesses and markets that suit investment opportunities.
If you’re also interested in investing in these kinds of opportunities, Switzerland could be an excellent choice, combining relatively low corporation tax with a high average salary and degree prevalence.
Other countries of interest include major countries, like the UK, France, and Germany, all of which are filled with potential investment opportunities that might be right what you’re looking for.
Hopefully, this knowledge has provided you with renewed ideas of where you could potentially invest in the future, be it in new business or another exciting entrepreneurial area.
Here at Blacktower, we support expats with whatever financial steps they need to take, making the financial side of moving to another country as stress-free as possible. If you’re after more insights into wealth management options and international pensions, you can find a range of guides and articles on our blog.
The above information was correct at the time of preparation and does not constitute investment advice. You should seek advice from a professional adviser before embarking on any financial planning activity.
The above article was kindly provided by Blacktower Financial Management Group and originally posted at: https://www.blacktowerfm.com/news/top-european-countries-for-new-business-entrepreneurs/