Cyprus has been ranked as the fifth-best country in Europe for entrepreneurs relocating from abroad, establishing it as a promising hub for new businesses, according to a new report by research firm William Russell.
The study, titled “Best European Countries to Start a Business as an Expat,” highlights the island’s high startup survival rate and strategic Mediterranean location as key advantages for attracting foreign entrepreneurial talent.
The European Rankings
In the comprehensive assessment, Cyprus achieved a score of 6.77 out of 10, placing it among the continent’s elite destinations for business relocation. The report evaluated countries based on several indicators, including new business density, first-year survival rates, and venture capital investment levels.
The top four countries that ranked ahead of Cyprus were:
- United Kingdom (8.66/10): Praised for its massive £3.15 billion venture capital ecosystem.
- Sweden (8.01/10): Noted for having Europe’s best business survival rate at 97.1%.
- Netherlands (7.47/10): Recognized for high labor force participation and a 95.7% survival rate.
- Switzerland (7.37/10): Highlighted for its high productivity and strong venture capital investment.
Cyprus’s Strengths and Weaknesses
The report detailed the specific metrics behind Cyprus’s high ranking. The nation boasts a strong first-year business survival rate of 87.8%, indicating a stable and supportive environment for new ventures. It also has a healthy new business density, with 12.79 new companies registered per 1,000 employees.
However, the analysis also identified a significant challenge: a major funding gap. Venture capital investment in Cyprus was recorded at just $500,000, highlighting a critical hurdle for startups seeking to scale up their operations. Despite this financing challenge, the report concludes that Cyprus’s appeal for digital nomads and small business founders continues to grow.
Standouts Across the Continent
While the UK topped the overall list, the report also highlighted other European nations that led in specific categories. Estonia recorded the highest density of new businesses, Luxembourg had the most coworking spaces per capita, and Hungary showed the highest labor force participation rate.
Source: Cyprus Property News