The Most Expensive Cities in Europe to Start a Business (2025)

Introduction

Europe has no shortage of opportunities for founders. Yet, choosing where to launch your startup or plant your laptop is more than a lifestyle decision. In 2025, it’s a financial strategy.

Some cities reward visibility and infrastructure. Others offer flexibility, affordability, and room to scale. For digital nomads and remote-first founders alike, the right base can shape everything from burn rate to hiring plans.

That’s why Vellis built this index. Our ranking looks at what it really costs to start a business in 30 major European cities—factoring in salaries, office rent, taxes, and setup fees. Whether you’re bootstrapping a solo venture or expanding a lean team, this breakdown offers clear insight into where your euros go furthest.

At Vellis Financial, we support businesses operating in complex and underserved spaces—especially healthcare and fintech. We also know that access, cost, and agility matter just as much to solopreneurs and early-stage teams as they do to established enterprises. Our index helps businesses of any size make confident, cost-effective decisions to grow and thrive.

Some results here confirm common assumptions. Others may surprise even seasoned founders.

Let’s take a closer look.

Key Findings: Europe’s Startup Costs Aren’t Created Equal

• Zurich tops the list as Europe’s most expensive startup city, with average labor costs of €53/hour and setup fees of €630.
  
• Oslo follows close behind, driven by high wages (€50/hour) and commercial rents that rival major capitals.
  
• Milan, Paris, and London round out the top five. Infrastructure in these spaces is world-class, but the price of entry is steep.
  
• At the opposite end, Sofia, Budapest, and Bucharest offer the most affordable environments for entrepreneurs. They feature lean taxes, low rent, and startup-friendly labor costs.
  
• Tax rates across the region range from just 9% (Hungary) to over 30% (Portugal), creating major variance in long-term cost planning.
  
• Digital nomad favorites like Amsterdam and Dublin land in the middle of the pack—balanced ecosystems with moderate friction.

Startup Costs Across Europe: A Regional Snapshot

If you’re choosing where to build your business or base your remote team, understanding the cost landscape is key. Our index reveals a clear east–west divide when it comes to startup affordability.

Western and Nordic cities dominate the upper end of the list, with Zurich, Oslo, and Paris demanding premium investment from day one. These cities offer infrastructure, talent, and access—but at a price.

Meanwhile, Eastern European cities—including Sofia, Budapest, and Bucharest—offer far lower barriers to entry. For founders prioritizing capital efficiency, regional growth, or a digital nomad lifestyle, these cities provide the flexibility to scale without draining resources too soon.

The chart below shows how startup costs vary across 30 European cities and where founders are likely to face the most (or least) financial resistance in 2025.

When it comes to launching a business in Europe, some cities offer prestige—but at a premium. These are the places where overhead adds up quickly: high salaries, complex regulations, and steep office rents. For well-funded startups, these locations offer visibility and access. For bootstrappers and remote-first teams, they can be instantly cost-prohibitive.

Here’s where founders will find the highest barriers to entry in 2025, according to our Startup Cost Score.

1. Zurich, Switzerland

Startup Cost Score: 82
Key Drivers: €53/hour labor · €630 registration fee · €71/m² rent

Zurich tops the list as the most expensive place in Europe to launch a business. Talent here doesn’t come cheap, and neither does space. While the city offers serious infrastructure and international credibility, founders will need a deep runway—or a hybrid structure—to make it work.

Our Take: “Zurich is where ambition meets overhead. You get stability, but you pay for it.”

2. Oslo, Norway

Startup Cost Score: 77
Key Drivers: €50/hour labor · €650 registration fee · €58/m² rent

Oslo features some of the continent’s highest wages and setup costs.It rewards scale but challenges scrappy teams. For founders building in healthtech, clean energy, or AI, the ecosystem is strong. Yet, if your business thrives on lean growth or remote flexibility, it may be wiser to plug into Oslo’s network without planting HQ roots.

Our Take: “Oslo’s ecosystem is advanced—but founders need the runway to match.”

3. Milan, Italy

Startup Cost Score: 65
Key Drivers: €600 registration fee · €83/m² rent · 27.8% tax rate

Milan may surprise some by landing this high on the list, but the numbers don’t lie. High office rents and one of Europe’s steepest corporate tax rates make it a tough spot for early-stage teams. For founders in fashion, fintech, or foodtech, Milan’s global relevance is undeniable—but affordability isn’t part of the package.

Our Take: “Milan is where style and business meet—just not cheaply.”

4. Paris, France

Startup Cost Score: 63
Key Drivers: €89/m² rent · €28.70/hour labor · 25.8% tax rate

Paris has the highest commercial rent in our index. While it offers world-class culture, connectivity, and visibility, recurring operational costs can strain new businesses. For remote-first teams and digital nomads, tapping into Paris’s ecosystem without anchoring there might be the smartest move.

Our Take: “In Paris, it’s not the paperwork that breaks your stride—it’s the overhead.”

5. London, United Kingdom

Startup Cost Score: 58
Key Drivers: €83/m² rent · €27/hour labor · €58.50 registration

London remains one of Europe’s most powerful startup hubs—but access comes at a cost. While tax rates are manageable, high rents and salaries mean daily operation costs add up fast. For global teams or VC-backed startups, it still makes sense. For leaner, remote-first models, launching from London could mean burning capital faster than expected.

Our Take: “London delivers global reach—but demands global resources.”

Quick View: Cities 6–10

These cities didn’t crack the top five, but they still present real cost pressure for founders aiming to launch lean.

6. Berlin, Germany

Rising wages (€31.60/hour) and mid-tier rent (€42/m²) push Berlin up the list. It’s no longer the low-cost haven it once was, though the startup ecosystem remains strong.

Our Take: “Berlin isn’t cheap anymore—but the network still delivers.”

7. Reykjavik, Iceland

High labor costs (€40/hour) and setup fees (€650) make this one of Europe’s more expensive outliers.

Our Take: “In Iceland, stability and quality of life come at a premium.” 

8. Copenhagen, Denmark

Wages top €42/hour, with moderate rent and solid public infrastructure. Great for scale-ups,but harder for remote-first or early-stage teams.

Our Take: “Copenhagen rewards scale—not scrappiness.” 

9. Amsterdam, Netherlands

Efficient but pricey. Labor (€33/hour) and rent (€50/m²) add up quickly, even with streamlined regulation.

Our Take: “Amsterdam is founder-friendly—but far from frugal.” 

10. Brussels, Belgium

Solid wages (€36.30/hour) and decent rent mean moderate-to-high cost pressure. Good access, but not a low-cost launchpad.

Our Take: “Brussels is central—but not cheap.” 

Top 10 Most Affordable Cities in Europe to Start a Business

Europe’s most affordable startup hubs don’t always make headlines. Nevertheless, for early-stage founders and remote-first teams, they might be the smartest launchpads. Lower wages, lean rent, and startup-friendly tax policies mean more flexibility, longer runways, and room to experiment.

Whether you’re a solo consultant registering your first company or a distributed team looking to base operations, these cities offer the lowest barriers to entry in 2025.

1. Sofia, Bulgaria

Startup Cost Score: 1
Key Drivers: €10.60/hour labor · €13/m² rent · 10% tax rate

Sofia ranks as the most affordable city in Europe for startups this year. With the lowest labor costs in our index, minimal setup fees, and a flat 10% tax rate, it’s an ideal choice for digital nomads and early-stage teams focused on capital efficiency.

Our Take: “Sofia is Europe’s lean startup HQ—low cost, high potential, and startup-ready.” 

2. Budapest, Hungary

Startup Cost Score: 3
Key Drivers: €11/hour labor · €15/m² rent · 9% tax rate

Budapest combines cost efficiency with full EU access and a growing tech scene. Featuring the lowest corporate tax rate in Europe alongside highly affordable wages and rent, it’s a powerful option for remote founders who want infrastructure without overhead.

Our Take: “Budapest proves you don’t need a London budget to build something big.” 

3. Bucharest, Romania

Startup Cost Score: 9
Key Drivers: €12.50/hour labor · €15/m² rent · low registration fees

Bucharest is quietly becoming a favorite for early-stage teams priced out of Western Europe. With low rent, affordable salaries, and a digitally savvy workforce, it’s an ideal base for support functions, product development, or hybrid teams.

Our Take: “Affordable, digital, and underestimated—Bucharest keeps you nimble.” 

4. Zagreb, Croatia

Startup Cost Score: 12
Key Drivers: €12.70/hour labor · €15/m² rent · modest setup fees

Zagreb might not be on every founder’s radar, but it should be. Its modest operating costs and strategic location make it a smart pick for startups with cross-border ambitions in the Balkans or Southern Europe.

Our Take: “Zagreb gives you space to grow without stretching your budget.” 

5. Vilnius, Lithuania

Startup Cost Score: 12
Key Drivers: €14/hour labor · €15/m² rent · 16% tax rate

Vilnius rounds out the top five with a government that supports innovation and an environment designed for startups. If you’re launching a SaaS platform or navigating a regulated industry, Lithuania’s affordability and digital infrastructure make it a strong base.

Our Take: “Vilnius is affordable by design—and built for modern startups.”

Quick View: Cities 6–10 (Most Affordable)

6. Warsaw, Poland

€11.90/hour labor and €20/m² rent keep costs predictable across the board.

Our Take: “Efficient, central, and cost-controlled—Warsaw is a quiet powerhouse.” 

7. Athens, Greece

Light fees and lean wages (€12.60/hour) make Athens an appealing soft-launch option.

Our Take: “If lifestyle and cost control are your focus, Athens delivers both.” 

8. Bratislava, Slovakia

Low labor costs (€12.50/hour) and minimal red tape help founders stay lean.

Our Take: “Bratislava is simple, stable, and founder-friendly.”

9. Riga, Latvia

Wages (€14/hour) and rent (€15/m²) make Riga a value-driven EU capital for remote-first teams.

Our Take: “Riga offers a rare combination of affordability and robust infrastructure.” 

10. Tallinn, Estonia

Digital-first services, €13.60/hour labor, and smart policies make Tallinn a consistent favorite.

Our Take: “Tallinn blends tech-savvy governance with startup affordability.”

Startup Cost Rankings: Europe’s 30 Cities Compared

Choosing where to start your business—or set up as a remote founder—isn’t just about vibe or visa options. It’s about financial strategy.

Our data shows that startup costs can vary dramatically across Europe. From Zurich’s premium salaries to Sofia’s budget-friendly setup, your city of choice can mean the difference between a 6-month runway and a year of growth.

That’s why we built a standardized index ranking 30 European cities by how costly they are for entrepreneurs in 2025. Whether you’re registering a solo consultancy or building a distributed team, this ranking helps you launch smarter.

Each city received a Startup Cost Score out of 100, based on:

• Business registration fees
• Labor costs (average hourly wage)
• Commercial office rent (€/m²)
• Corporate tax rate
  

All data was converted to euros and normalized for consistency, giving you a clear picture of how costs compare across both borders and business models.

“Startup costs in Europe span an 80-point range. That’s not just a budget difference—it’s a strategy shift.” — Vellis Financial

Expert Tips: How to Start Smart in Europe’s Most Expensive Cities

Launching in a high-cost city doesn’t have to be a dealbreaker—especially if your startup thrives on proximity to capital, talent, or infrastructure. Nevertheless, whether you’re based in Zurich or pitching from Paris, being strategic about cost can make all the difference.

Here’s how founders—especially remote-first teams and digital nomads—can stay lean in high-cost cities:

1. Build hybrid teams from day one

Hire local leads, but scale your team across more affordable regions. Many startups in London, Berlin, or Amsterdam combine HQ credibility with cost-efficient remote ops.

2. Skip the traditional office

Coworking hubs and startup accelerators offer flexibility, networks, and lower overhead. In cities like Paris or Milan, a fixed lease could quickly drain your capital.

3. Incorporate strategically

Registering in a city doesn’t mean you have to fully operate there. Many founders launch in affordable jurisdictions like Estonia or Ireland while maintaining teams across the EU.

4. Tap into public funding

Don’t overlook the grants, credits, and support schemes available through EU programs or national development offices. These can offset hiring, R&D, or expansion costs.

5. Choose financial tools that flex with you

Fintech founders, healthcare operators, and remote-first teams often need banking and payment solutions built for complexity. Choose platforms—like Vellis—that scale with your needs without bloating your overhead.

Our Take: “Launching in a high-cost city isn’t about cutting corners. It’s about making every euro work harder.” 

Conclusion: Cost Isn’t Just a Barrier—It’s a Strategy

Where you choose to launch your business in Europe shapes everything: your team, your runway, and your ability to grow.

Our data shows that startup costs vary widely, from high-profile hubs like Zurich and Oslo to founder-friendly markets like Sofia and Budapest. In 2025, smart founders are weighing more than talent pools and time zones. They’re asking: Where can I build affordably, sustainably, and with flexibility?

For digital nomads and remote-first teams, affordability goes beyond simply lowering costs. It provides greater freedom, more time to scale, and less friction at every stage.

At Vellis Financial, we support founders working in complex spaces—whether you’re navigating setup in Paris or scaling from Eastern Europe. Our tools flex with you, wherever you choose to build.

Data & Methodology: How We Ranked Europe’s Startup Costs

At Vellis Financial, we set out to answer a straightforward but often overlooked question:
What does it actually cost to start a business in Europe in 2025?

To find out, we analyzed 30 major European cities using a weighted index built around the core cost factors that matter most to founders. Whether you’re registering a solo consultancy or launching a fully staffed startup, these are the real expenses that shape your financial runway.

What We Measured

Each city received a Startup Cost Score out of 100, where higher scores reflect greater cost pressure for early-stage businesses. Our model includes four weighted metrics:

Business Registration Fee (10% weight)
Sourced from national registries and EU startup guides, we used the average cost to register a limited liability company (LLC or equivalent). Where fees varied by structure or minimum capital, we calculated a representative midpoint.

Labor Cost (40% weight)
We used average hourly wage data from Eurostat (2024) across EU and EFTA countries. Labor costs were based on a full-time workload of 160 hours per month—reflecting the single largest ongoing expense for most startups.

Commercial Rent (30% weight)
Rent data was drawn from CBRE, Savills, and other commercial real estate sources, focused on prime office locations within each city. We calculated monthly rent per square meter, based on central business districts where startups are most likely to operate.

Corporate Tax Rate (20% weight)
Tax rates were compiled from the European Commission’s 2024 Taxation Trends report and national authorities. We used the combined national and local corporate tax rate for a standard LLC structure in each country.

How We Scored It

To allow for fair, cross-border comparisons, we standardized all inputs on a 0–100 scale—where 100 represents the highest observed cost across the dataset. We then applied the above weights to create a final Startup Cost Score for each city.

All costs are converted to euros for consistency, and all data reflects the most recent and reliable figures available as of Q1 2025.

At Vellis Financial, transparency matters. This methodology is designed to give founders, journalists, and policymakers a clear, apples-to-apples view of how startup costs compare across Europe—so you can build with clarity, not guesswork.