Each country was given a score from 0 to 10 for every metric using a percentile-based system. These were then averaged to determine the overall “expat entrepreneur score.”
In 2022, European Union countries spent an average of €830 per person on family benefits, marking a 47% increase from €566 in 2012, highlighting the growing commitment to social support across the region.
The ranking is based on the latest data available as of May 15, 2025, sourced from the World Bank, OECD, Dealroom, Coworker, and the Forbes Rich 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.”
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.”
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.”
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.”
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.”
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.
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.
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.”
9. Luxembourg
10. Belgium
