A Europe-wide survey has ranked Cyprus fifth for expat entrepreneurs, citing its strong startup density and solid survival rates, though limited venture capital remains a challenge.

According to research by William Russell, Cyprus recorded 12.79 new businesses per 1,000 working people, one of the highest figures in Europe.

Moreover, more than 87 per cent of startups survive their first year, showing a supportive environment for new ventures.

However, funding remains the main drawback. Venture capital investment stood at just £375,000 (around US$500,000), among the lowest levels on the continent.

Even so, the island appeals to entrepreneurs seeking a Mediterranean base within the EU, supported by a favourable tax regime and a growing digital nomad community.

Overall, Cyprus achieved an Expat Entrepreneur Score of 6.77/10, with ten Cyprus-linked business owners on the Forbes Rich List.

By contrast, the study placed the United Kingdom first overall with a score of 8.66/10.

Startups in Britain attracted £3.15 billion in venture capital, more than twice the amount recorded in Germany.

The UK also posted 18.62 new firms per 1,000 workers and an 89.2 per cent survival rate.

In second place came Sweden, with a score of 8.01. Almost all businesses there survive their first year, with a 97.1 per cent survival rate, the highest in Europe.

Venture capital inflows exceeded US$750 million, supported by strong infrastructure and social systems. In addition, forty-five Swedish entrepreneurs are listed on the Forbes Billionaires List.

The Netherlands followed in third with 7.47. It recorded the highest workforce participation rate of the top five at 57.71 per cent, alongside a 95.7 per cent startup survival rate.

The country’s strong digital networks and high quality of life make it a leading hub for entrepreneurs.

Switzerland ranked fourth with 7.37/10. While its survival rate is lower at 82 per cent, the country secured £659.6 million in venture capital and remains one of Europe’s most business-friendly financial centres.

Beyond the top five, Norway scored 6.29, with more than nine new businesses per 1,000 workers and VC investment exceeding £41 million.

Iceland (6.13) showed high business creation but weaker survival, while Estonia (6.08) recorded the highest startup density in Europe at 24.32 per 1,000 workers.

Luxembourg, also at 6.08, ranked top for coworking spaces with 10.5 per 100,000 people. Belgium rounded out the top ten with 5.97, thanks to a 93.8 per cent survival rate and VC investment of £182.7 million.

The survey also highlighted category leaders. Estonia led in startup density, Sweden in survival rates, Hungary in workforce participation, Luxembourg in coworking availability, and the UK in venture capital flows.

Meanwhile, Germany produced the highest number of billionaires, with 121 business owners on the Forbes list, compared with 74 in Italy and 55 in the UK.