The United Kingdom has been named the best European country for expat entrepreneurs, whilst Cyprus secured fifth place in a comprehensive analysis of business-friendly destinations across the continent.
The study, compiled by international insurance provider William Russell, evaluated 10 European countries across six equally weighted metrics: startup density, one-year survival rates, venture capital investments, collaborative infrastructure, workforce participation, and number of billionaire founders.
UK dominates with balanced opportunities
The UK topped the ranking with a score of 8.66/10, leading due to “a balanced combination of opportunities, infrastructure and investments”.
The country recorded by far the highest venture capital investments in technology, with over £3 billion ($4 billion USD) invested in UK-based startups – more than £1 billion ($2 billion USD) ahead of second-highest Germany.
The UK also ranked highly in new business density, with 18.62 new businesses per 1,000 workers.
Kim McClatchy, Head of Human Resources, explained: “To answer this question, we analysed a wide range of indicators – from startup survival rates and availability of collaborative spaces to venture capital investments and workforce participation. Whether you want to start from scratch or move your business abroad, this information will help you identify the most promising locations across Europe”.
Nordic strength and Swiss precision
Sweden claimed second place with 7.47/10, boasting the highest workforce participation rate (57.71%) among the top five and a solid survival rate of 95.7%. The analysis noted Sweden “provides a stable, well-connected economy for new startups” with strong digital infrastructure and quality of life.
Switzerland secured fourth place with 7.37/10, combining high productivity with access to capital. Despite a lower survival rate of 82%, it features significant venture capital investment of £879.5 million.
Cyprus exceeds expectations
Cyprus earned its fifth-place position with 6.77/10, with the study noting: “Cyprus far exceeds expectations for creating new businesses, with high new business density (12.79) and steady survival rate (87.8%). However, venture capital investments are low ($500,000 USD), suggesting securing funding here is more challenging”.
The analysis highlighted Cyprus as “an emerging destination for startups, particularly attractive to digital nomads and small business founders seeking a Mediterranean base with EU access”.
Lower-ranked European destinations
Norway placed sixth (6.29/10) with stable workforce and decent business density but limited venture capital funding of just £41.25 million ($55 million USD) in 2025.
Iceland ranked seventh (6.13/10) despite high startup creation rates of 12.07 per 1,000 workers, hampered by the lowest survival rate among the top 10 at 73.5%.
Estonia took eighth place (6.08/10), leading Europe in new business density at 24.32 per 1,000 people, largely driven by its digital infrastructure policies.
Luxembourg secured ninth (6.08/10) with Europe’s highest coworking spaces per capita (10.5 per 100,000 people), whilst Belgium completed the top 10 (5.97/10) with strong survival rates but low workforce participation at 45.38%.
Employee benefits crucial for success
The research emphasised that beyond rankings, factors including access to a skilled workforce, startup support, and thriving business ecosystems play crucial roles in entrepreneurial success.
“As the war for talent becomes increasingly intense, businesses must think better about the benefits they offer employees. The right benefits package could help you attract, retain and motivate your best employees, giving you a competitive advantage in the market and helping you grow your business internationally,” the study concluded.