Which European Country is Best for Business Expansion?

SExpanding your business beyond borders is more than just finding a new market—it’s about tapping into innovation ecosystems, regulatory support, low tax environments, and access to talent. Europe, with its diverse economic landscapes, world-class infrastructure, and investor-friendly policies, remains a magnet for foreign entrepreneurs and growing companies.

But here’s the real question: Which European country is the best for business expansion as a foreigner?

Let’s explore the top contenders—Spain, Germany, Poland, Netherlands, Ireland, and Italy—and why each one might be your next best business move.

Which European Country is Best for Business Expansion as a Foreigner?

Here are the best countries for business expansion in Europe:

1. Spain

Spain is fast becoming a haven for digital entrepreneurs, especially with programs like the Spanish Digital Nomad Visa and the Startup Act. Cities like Barcelona and Madrid are thriving tech hubs with excellent coworking spaces, startup accelerators, and affordable living compared to other Western European countries.

Key Benefits:

• Corporate tax incentives for new companies.
• Access to EU markets and Latin America due to strong cultural and trade ties.
• Excellent lifestyle, weather, and healthcare—attracting global talent.

2. Germany

Germany is Europe’s largest economy and the fourth-largest globally. With a strong industrial base, highly skilled labor, and a reputation for innovation, setting up a business in Germany is ideal for companies looking to scale operations in tech, manufacturing, clean energy, and engineering.

Key Benefits:

• Access to one of the most stable and affluent markets in the world.
• Government-backed funding for innovation and sustainable businesses.
• Highly developed infrastructure and digital transformation agenda.
• Strategic location with access to all major European markets.

3. Poland

Poland is a strategic entry point into Central and Eastern Europe, offering low operational costs and a strong workforce. Its capital, Warsaw, along with Kraków and Wrocław, are buzzing with IT talent and outsourcing hubs.

Key Benefits:

• Low labor and infrastructure costs.
• EU member with robust legal protections for foreign investors.
• Strong domestic demand and export-oriented industries.
• Access to one of Europe’s youngest and most skilled labor forces.

4. Netherlands 

The Netherlands is a global logistics and finance powerhouse. Its strategic location, progressive tax system, and ease of doing business make it one of the top choices for foreign expansion.

Key Benefits of Incorporating a Business in the Netherlands:

• English widely spoken—excellent for foreign founders.
• One of the best infrastructures for logistics and tech startups.

5. Ireland 

Ireland offers low corporate tax rates (12.5%) and is the European base for global giants like Google, Facebook, and Pfizer. The government actively supports innovation through R&D tax credits and grants.

Key Benefits:

• Low corporate taxes and strong IP protection laws.
• English-speaking, skilled, and innovation-oriented workforce.
• Member of the EU and access to EU funding.
• Excellent startup ecosystem in Dublin and Cork.

6. Italy

Italy is known for its fashion, design, luxury goods, and food exports. It may not be the first choice for startups, but if you’re in consumer goods or creative industries, Italy offers rich heritage and global brand perception.

Key Benefits:

• Strong regional markets (Milan, Rome, Bologna).
• Incentives for foreign investments in southern Italy.
• Thriving tourism, fashion, food, and manufacturing sectors.
• Access to EU-wide export channels and logistics hubs.

Conclusion

Expanding your business into Europe is no longer just a strategic move—it’s a competitive advantage. With countries like Spain, Germany, Poland, Netherlands, Ireland, and Italy offering diverse benefits—from innovation hubs and low corporate taxes to skilled talent and consumer-ready markets—the region is rich with opportunity for foreign entrepreneurs.

Whether you’re scaling a tech startup, launching a logistics network, or entering the creative economy, there’s a perfect fit waiting for you. 

If you are looking to set up a business, get in touch with our business formation experts from OnDemand International today.