Cyprus Ranked 5th Among the Best European Countries for Entrepreneurs

Cyprus has firmly established its position among the leading European jurisdictions for doing business. According to a new study by William Russell, “The Best European Countries for Expats to Start a Business,” Cyprus ranked 5th with a score of 6.77/10.

Experts assessed how comfortable the country is for expat entrepreneurs. The evaluation took into account factors such as: the number of new companies opened per 1,000 working people; the percentage of businesses that remain active after the first year; the availability of coworking spaces; the level of digital infrastructure; the volume of venture capital investments; and government support for innovation.

Cyprus’ results in the ranking:

• nearly 13 new companies are created per 1,000 working people;
• 87.8% of businesses continue operating successfully after the first year;
• Cyprus has modern digital infrastructure and direct access to the EU market.

Although the level of venture capital investment remains limited (USD 500,000), which means funding is harder to obtain, Cyprus is increasingly mentioned as a promising destination for startups. The island actively attracts digital nomads, IT specialists, and small business founders who are looking for a business hub with a Mediterranean atmosphere within the European Union.

Read also: From IT startup to holding – what companies are registered in Cyprus?

Which other European countries are on the list of the best for entrepreneurs?

1. United Kingdom — score 8.66/10

The UK topped the list thanks to its perfect combination of infrastructure, investment opportunities, and a developed ecosystem.

It ranks first in Europe in terms of venture capital investments in technology: startups headquartered in the UK have raised over £3 billion (about USD 4 billion). Moreover, a large number of new businesses are opened here: 18.62 new firms per 1,000 working people.

2. Sweden — score 8.01/10

Sweden shows the best business survival rates: 97.1% of companies continue operating after the first year, a record among all countries in the ranking.

Key advantages: a strong social system and modern technological infrastructure, making Sweden attractive for entrepreneurs focused on long-term projects.

The volume of venture investments exceeded USD 750 million, and 45 Swedish entrepreneurs are included in the Forbes billionaires list.

3. Netherlands — score 7.47/10

The Netherlands stands out with high labor force participation (57.71%) and high business survival rates (95.7% of companies operate for more than a year).

Its advanced digital infrastructure and high standard of living make the country one of the most attractive for expat entrepreneurs in Europe.

4. Switzerland — score 7.37/10

Switzerland combines high labor productivity with access to capital. Although the percentage of companies surviving after the first year is lower (82%), the country attracted significant venture investments — nearly USD 880 million. Despite its small domestic market, financial stability, a developed banking system, and favorable legislation make Switzerland an appealing business destination.

In conclusion, the study revealed that Europe is forming several “entrepreneurial hotspots.” The UK and Sweden lead due to investment and stability. Cyprus ranks 5th, lagging behind in venture capital investment but excelling with a high share of successful companies and unique tax advantages (low corporate tax and the Non-Dom regime).

If you plan to start a business in Cyprus, the Feod Group team will guide you through all legal and tax stages — from company registration and bank account opening to tax planning and ongoing business support.

Contact us to take full advantage of Cyprus for your business!

We look forward to welcoming you at our office in Larnaca or online.