3 Attractive European Countries for Starting a Business

Starting a company in Europe offers many advantages, as there are plenty of countries to choose from, access to the EU market, which is one of the largest in the world, and harmonized legislation, which makes business expansion easier. But how do you choose a country? Below, you will find 3 recommendations: Cyprus, Romania, and Denmark, each with its own unique traits and benefits.

Choose Cyprus if you want access to the Eurozone and the EU

Many investors choose Cyprus because it is a member of the European Union and relies on the Euro as a currency. This makes the transition from here to the large member states easier. Another advantage Cyprus has over other countries is its geographical location: it is considered the bridge that connects Europe to Asia and Africa, so if you deal in any of these parts of the world, you can ship or bring goods here faster than in other destinations.

Another advantage of starting a company in Cyprus is taxation. However, it must be noted that starting in 2026, the corporate tax has been increased from 12.5% to 15%. Even so, it still has one of the most attractive tax regimes in the EU. The government also made other legislative changes, which is why if you decide on this country, you can discuss with the team at BridgeWest Cyprus about these changes.

On the list of reasons to choose Cyprus for business are also the great business environment, which benefits from governmental support in the form of incentives and grants, as well as the legal system, which is based on the English Common Law.

Opt for Romania if you want a skilled workforce at reasonable costs

No matter the country you operate in, to keep a business running, you need quality human capital. From this point of view, you can choose Romania, as it has one of the most skilled and talented workforces in the EU at reasonable costs. Taxation is another reason to decide on Romania, especially since its corporate tax is 16%, so not far from Cyprus anymore. 

Another advantage you will obtain if you set up a business in Romania is the possibility of accessing various EU funds, as the country is one of the most important recipients of financing. If you access La Registru, you will also have a clear picture of how fast registering a company here is. 

Denmark, one of the top performers in various sectors in the world

If you are interested in an European country that ranks high in world indexes related to ease of doing business, investment in renewable energy, and quality of life, you should definitely choose Denmark.

Political and economic stability, transparent legislation, and favourable employment regulations can also be added to the list of benefits Denmark offers to investors. As for the process of forming a company in Denmark, it is also one of the most performant in Europe, as it takes a few days to register a business here. While language may be a challenge, getting help from specialized service providers such as BridgeWest Denmark can improve the overall experience. 

Who is Denmark suitable for? It could be said that you can get most of the benefits if your activities focus on research and development, biotechnology, life sciences, or renewable energy, as there are specific incentives you can access for such industries. This is important because Denmark does not have such a low corporate tax rate compared to the other two jurisdictions mentioned above, so this is one way to enjoy a favourable taxation regime here.

Cyprus, Romania, and Denmark each, have their own advantages when it comes to starting a business. Practical aspects like the ease of company registration and administration should also be taken into consideration when choosing an investment destination, in which all 3 states excel. However, the choice should also be based on your needs, the markets you address, and the business culture you feel more comfortable with.