Greece is Europe’s most complex country to do business according to the Global Business Complexity Index (GBCI) released by the TMF Group, a leading provider of compliance and administrative services.
The comprehensive report analyses 79 jurisdictions which account for 93 percent of the world’s total GDP and 88 percent of net global FDI inflow. It compares 292 annually tracked indicators, spanning incorporation timelines and how to open a bank account to tax processes and visa rules, it offers data on key aspects of doing business across the globe.
This year’s study reveals Denmark, the Netherlands, the UK, and Jersey to be among the easiest jurisdictions in Europe to do business.
Complex jurisdiction hinders business in Greece
Meanwhile, Greece takes the top spot as this year’s most complex jurisdiction (in both Europe and overall), climbing from 6th in 2022 and 2nd in 2023, overtaking France in 2nd place this year.
The report says that while Greece has consistently been considered complex, particularly within accounting and taxation (A&T), its HR and payroll (HRP) functions have increased in complexity in 2024.
Limited knowledge of these complexities can often compel foreign investors to seek third-party advisors for A&T and HRP, only increasing costs.
“Southern Europe and Latin America, which historically are politically quite connected, are fairly consistently the most complex places to do business,” Mark Weil, TMF Group’s chief executive officer, told fDi.
The two regions are home to nine of the 10 most complex countries in the 2024 index. In last year’s ranking, they collectively accounted for the entire top 10. “There is a significant regional pattern to business complexity suggesting entrenched attitudes to rules and regulation,” TMF Group stated in a note accompanying the 2024 GBCI’s release.
France has also seen a rise in new regulations in 2024, including UBO identification and tax changes, which has also increased compliance costs. In addition, stringent labor regulations designed to protect employees make workforce adjustments challenging, increasing hiring and retention costs.
Top performers
Whereas Denmark’s efforts to streamline business activities, notably through digitizing taxation processes, have significantly eased business setup and reporting, making it faster and less complex.
And thanks to its client-friendly approach to laws, regulations and processes, the Netherlands regularly ranks as one of the simplest jurisdictions for business operations. The country’s regulatory stability, support for new ventures, and strong ecosystems for fintech and AI-driven businesses remain attractive to foreign investors.
TMF Group’s Head of EMEA, Frank Welman, said: “The GBCI outlines the challenges of doing business within certain European countries despite their apparent attractiveness. We hope to see more companies reaching out to partners and advisors to ensure compliance with the evolving rules and regulations – especially when doing business across borders.”
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