Four Of The Best European Countries for Starting a Business

Contributed by Welcome Center Malta, 10 September, 2019

It is important to select a good location for your business. The country where you set up your business will have a significant impact on your long-term strategy and will determine how your business will grow.

Many European countries have made efforts to become destinations for global businesses. This is because the new wave of entrepreneurship allows people to operate far from their home countries. Different countries have developed various strategies and incentives to attract such business people and start-ups.

In this article you will discover 4 of the top countries for businesses.


Germany has the biggest economy in Europe, and this wealth seems to have attracted many start-ups to its capital city, Berlin. Some big companies that were started in the city include Soundcloud, Dubsmash, and Splash.

In Germany, corporations have to pay taxes of 15%, in addition to trade taxes. But your business will have to make at least EUR 50,000 before you have to pay value-added tax. Another major benefit that makes Germany an ideal business location is that it has very skilled work force. Furthermore, due to many expats living and working there, a large percentage of the population can communicate easily in English.

If you decided on Germany as your business location, note that health insurance is mandatory by law in Germany. You can opt for public or private health insurance.


Malta is best known as a classy tourist destination, but today, more people are realising the benefits of the country for business. Before, the country's economy was largely based on agriculture. It has recently been diversified and now depends on many different sectors. Some of the more developed industries in Malta include IT&C, pharmaceuticals, aviation, finance, shipping, technology, and tourism. Gaming has also grown to be a major industry in the country.

One reason why people are setting up their businesses is for the tax system of the country. Malta has a full imputation system and charges a flat corporation tax rate of 35%. With the full imputation system, companies incorporated in the country pay an overall effective tax of 5%. Businesses in the country also enjoy double tax relief. With tax relief mechanisms like treaty relief and unilateral relief, the average corporation tax drops from 35% to less than 6.25%. Some companies even pay 0% in taxes.

Speak with a company formation expert in Malta.

United Kingdom

The United Kingdom is still a major destination for founders of startups. Even though the country is set to leave the European Union, there are still many factors pulling investors and business people into the country. London, the capital of the country, has a large number of tech-centred companies, and it has been noted to have one of the largest population of developers, programmers, and engineers in Europe.

As of 2017, the United Kingdom has an estimated GBP 4.5 billion in venture capital investments, and that made it the leading European country in venture capital investment.

According to a merchant service provider known as Paymentsense, the tech startup sector of the United Kingdom has expanded by close to 6 per cent over the past 5 years. This data clearly shows that the country has one of the fastest-growing technology startup sectors in Europe.

Concerning taxes, the United Kingdom has a corporation tax of 19 per cent, which is just moderate. The government has plans to lower the tax rates to 17 per cent, and this goal is set to be achieved by 2020. If your business has a taxable turnover that is higher than GBP 85,000, you will need to register for value-added tax.


Sweden is the home of many major startups in the world. These include Spotify, Majong, and Klarna. The country has a small population of about 10 million people, but it has proven itself to be a key player in the tech industry.

Fredrik Andersson, Pehr-Johan Norback, Lars Persson and Fredrik Heyman, all from the Research Institute of Industrial Economics, studied the mysterious rise in entrepreneurship in Sweden. They concluded that the entrepreneurship spirit was encouraged by the economic reforms of the 1990s which made it easier to start and grow businesses in the country. According to their research paper, Sweden has surpassed the USA in entrepreneurship.

Concerning corporation tax, Sweden has tax rates of 22 per cent. Their goal is to lower this rate to 20.6 by 2021. This reduction in the tax rate will make it one of the best countries for starting a business.

Tags: company formation | business | Germany | Sweden | Malta | United Kingdom |



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