The Czech Republic ranks as the ninth-best country in Europe for running a startup company, according to a recent study from the UK market research company NimbleFins. The study compared measurements of economic health, cost of doing business, labour force quality and business climate in 31 countries around Europe. The Czech Republic did especially well in terms of its economic strength and the costs of operating a business.
The Czech Republic’s economic health came in seventh-place in Europe, outranking Austria, Belgium and Sweden, amongst others. The category took into account traditional economic measures such as GDP, GDP per capita, GDP growth and unemployment rate. World Bank data showed Czechia boasting a total GDP of $246.5 billion with an expected GDP growth rate of 2.6% and an unemployment rate of 2.0%, making it a country with a strong and healthy economy.
As startup businesses can be short on finances when starting out, the Czech Republic is a great place for new companies to save on business costs. Comparing the wages, cost of living and corporate tax rates in European countries, Czechia ranked as the sixth most favourable place for startups, right after Poland. Average salaries are higher in the Czech Republic than in Croatia, Slovakia or Latvia, for instance. Still, the cost of living in Czechia is more affordable. The Czech Republic’s corporate tax rates (19%) ranked 11th best in Europe.
In a similar study last year, the Czech Republic reached the Top 6 in Europe, slightly falling this year to ninth place. In the updated version for 2020, two new metrics were added, and the number of countries in the study was expanded to include the United Kingdom and all of the European Economic Area (EEA) except Liechtenstein.