Expanding into a new market is often driven by opportunity, but the strongest-performing regions are not always the most obvious.
Our analysis of OECD countries shows that the best destinations for business expansion are defined by balance: steady growth, political stability, and favorable operating conditions, helping reduce friction in how teams communicate, make decisions, and build relationships.
By contrast, some of the world’s largest and most in-demand markets are more complex. Cultural differences, in particular, can slow progress if they are not properly understood. For organizations scaling internationally, approaches such as cultural intelligence training are increasingly being used to prepare teams and support more effective market entry.
The findings below reveal the countries offering the strongest overall conditions for expansion, and highlight the less visible factors that can shape long-term success.
● Ireland ranks as the best country for business expansion, scoring 7.67 out of 10, followed by Poland and Portugal in second and third place.
● Six of the top 10 countries are in Europe, highlighting the region’s strength as a destination for stable and scalable international growth.
● Australia, Canada, and New Zealand are the most in-demand markets, with search volumes more than three times the global average, but none rank in the top three overall.
● The United States ranks joint 17th, indicating that market size and global influence do not guarantee the strongest expansion conditions.
● Several of the world’s largest markets rank outside the top 20, including Germany (35th), France (21st), and Italy (25th).
● The most culturally aligned markets with the UK include the US, Finland, Canada, the Netherlands, and Denmark, all of which have lower average cultural distance scores and fewer barriers to communication and collaboration.
● The strongest expansion markets combine multiple advantages, including above-average growth, political stability, competitive tax environments, and manageable cultural differences.
For businesses looking to scale internationally, the choice of market can determine how quickly and effectively operations take hold. These countries offer the most favorable conditions for expansion across key economic and operational factors.
| Rank | Country | Headline Corporate Tax | Annual GDP Growth Rate | Political Stability | Unemployment Rate | Cultural Similarity Score | Searches for "Starting a Business in [Country]" | Business Expansion Score /10 |
| 1 | Ireland | 12.5% | 2.6% | 78.7% | 4.6% | 6.0 | 11,000 | 7.67 |
| 2 | Poland | 19.0% | 3.0% | 64.0% | 3.0% | 6.2 | 4,100 | 6.96 |
| 3 | Portugal | 19.0% | 2.1% | 70.6% | 6.2% | 7.8 | 3,140 | 6.71 |
| 4 | Switzerland | 14.4% | 1.3% | 88.6% | 4.9% | 3.9 | 5,850 | 6.55 |
| 5 | Denmark | 22.0% | 3.5% | 76.8% | 5.5% | 3.4 | 2,460 | 5.92 |
| 6 | Lithuania | 17.0% | 2.8% | 72.5% | 6.7% | 4.9 | 2,090 | 5.90 |
| 7 | Japan | 31.5% | 0.1% | 81.5% | 2.5% | 6.7 | 6,070 | 5.88 |
| 8 | Australia | 30.0% | 1.4% | 79.6% | 4.1% | 4.4 | 16,260 | 5.84 |
| 9 | Hungary | 9.0% | 0.6% | 72.0% | 4.5% | 6.7 | 980 | 5.83 |
| 10 | Costa Rica | 30.0% | 4.3% | 83.9% | 6.8% | 7.6 | 680 | 5.71 |
1. Ireland | Score of 7.67/10
Ireland ranks as the strongest country for business expansion, supported by a combination of competitive tax conditions, steady growth, and sustained demand. Its corporate tax rate (12.5%) remains well below the global average of 23.3%, while GDP growth (2.6%) exceeds the 1.5% benchmark.
The country’s pro-business environment continues to attract international investment, with incentives such as R&D tax credits of up to 30-35%, alongside grant funding and support for companies entering the market.1 Demand is also notably high, with more than 11,000 annual searches for starting a business in Ireland – over three times the report average (3,594).
While its cultural distance from the UK (6.0) sits slightly above average (5.5), shared language, legal similarities, and established business ties help reduce practical barriers to entry, supporting Ireland’s position as a leading market for international expansion.
2. Poland | Score of 6.96/10
Poland ranks second, driven by strong economic momentum and favorable labor conditions. GDP growth (3.0%) is double the global average, while unemployment (3.0%) remains significantly below the 5.8% benchmark.
The country’s network of Special Economic Zones (SEZs) continues to support inward investment by offering tax relief and financial incentives to businesses establishing operations. Although the program is set to conclude at the end of 2026, it has played a significant role in attracting long-term investment and supporting industrial growth. 2
With a cultural distance score of 6.2, slightly above the dataset average, Poland may present some differences in working practices. However, its combination of growth and cost efficiency continues to position it as a strong option for businesses expanding within Europe.
3. Portugal | Score of 6.71/10
Portugal ranks third, combining above-average GDP growth (2.1%) with relatively strong political stability (70.6%). Its corporate tax rate (19.0%) also sits below the global average, contributing to a competitive operating environment.
In recent years, Portugal has introduced a range of initiatives to attract international business, including investment incentives, the Startup Visa program, and support for innovation-led companies.3 4 These efforts have helped position the country as an increasingly attractive destination for expansion, particularly for businesses seeking access to European markets.
However, its cultural distance from the UK (7.8) is higher than average, indicating greater differences in communication styles and business practices. While this does not limit opportunity, it may require more deliberate adaptation when entering the market.
4. Switzerland | Score of 6.55/10
Just missing out on the top three, Switzerland ranks fourth, supported by high political stability (88.6%), well above the global average, and a relatively low corporate tax rate (14.4%).
Its decentralized system allows individual regions (cantons) to offer targeted incentives and investment support, creating flexibility for businesses looking to establish operations.5 This contributes to a stable and predictable operating environment.
While Switzerland’s GDP growth (1.3%) sits slightly below the global average, its strong institutional framework and moderate cultural distance from the UK (3.9) continue to make it an attractive option for businesses prioritizing stability over rapid growth.
5. Denmark | Score of 5.92/10
Denmark completes the top five, standing out for its strong economic performance and stability. GDP growth (3.5%) is more than double the global average, while political stability (76.8%) remains well above the benchmark.
Its business environment is also known for being built around efficiency and digital integration. Denmark ranks among the top countries globally for ease of doing business, with the World Bank placing it 4th worldwide and 1st in Europe.6
Businesses can also establish operations relatively quickly, with reports of company registrations typically taking just a few days.7
With a cultural distance score of 3.4, Denmark sits below the global average, indicating closer alignment with UK business practices and fewer barriers to communication and collaboration.
Across the top 10, no single country leads across every metric. Instead, the highest-ranking markets consistently perform above global averages across multiple indicators, creating more balanced conditions for expansion.
Poland and Denmark, for example, both exceed the global GDP growth average of 1.5%, while Switzerland significantly outperforms on political stability, scoring 88.6% and 96.2% respectively against a benchmark of 67.2%. Ireland combines this stability with corporate tax rates well below the global average of 23.3%.
Demand, however, is concentrated in fewer markets. Australia records the highest search volume (over 16,000), followed by Canada (14,320) and New Zealand (12,170) – all significantly above the global average of 3,594. Despite this, only Australia appears in the top 10, highlighting that demand alone does not determine overall performance.
This pattern is consistent across the rankings. The strongest expansion markets are not those that lead in a single area, but those that maintain consistent performance across growth, stability, and operating conditions.
Cultural alignment can influence how easily businesses establish and scale in new markets, particularly in areas such as communication, decision-making, and team dynamics.
Across the dataset, several countries record cultural distance scores well below the average of 5.5. Denmark (3.4), Switzerland (3.9), Finland (3.0), and the Netherlands (3.3) all show closer alignment with UK business practices, indicating fewer barriers to day-to-day collaboration.
Many of these markets also perform strongly overall. Denmark and Switzerland, for example, both rank within the top five, suggesting that cultural familiarity can support smoother market entry alongside favorable operating conditions.
However, cultural alignment alone does not determine overall expansion potential. Germany, despite a low cultural distance score (4.1), ranks 35th, reflecting weaker performance across other indicators such as growth.
At the other end of the scale, countries such as Portugal (7.8), Mexico (8.1), and Japan (6.7) sit above the average, indicating greater potential differences in business practices. In these markets, how decisions are made, how hierarchy is structured, and how relationships are built can vary more significantly, meaning proactively building cultural intelligence is even more important for ensuring the speed and success of expansion.
Australia, Canada, and New Zealand attract the highest levels of interest from businesses looking to expand internationally. Australia leads with more than 16,000 annual searches for starting a business, followed by Canada (14,320) and New Zealand (12,170) – all significantly above the global average of 3,594.
Several factors likely contribute to this demand. All three markets offer strong political stability, established legal frameworks, and English-speaking business environments, making them more familiar to UK-based companies.
This combination of familiarity and perceived ease of entry helps position these countries as natural first choices for international expansion.
However, the most popular markets do not rank top overall. Australia places 8th, New Zealand falls just outside the top 10 in 11th, and Canada ranks 22nd, despite being one of the most searched-for destinations.
A similar pattern appears elsewhere. Japan attracts more than 6,000 annual searches but ranks 7th overall, while France also generates strong interest despite placing 21st in the index. In contrast, some of the highest-ranking markets, including Ireland, Poland, and Portugal, see comparatively lower search demand.
This gap highlights a key challenge for businesses planning international growth. Markets that feel familiar or highly visible are not always those that offer the strongest conditions for expansion. Entering less familiar markets can introduce additional complexity, particularly in how teams communicate, make decisions, and build relationships.
In these cases, preparing teams to operate effectively across different cultural contexts becomes critical. Approaches such as cultural intelligence training can help businesses bridge these gaps, supporting smoother integration and more effective expansion into markets that, while unfamiliar, may offer stronger long-term potential.
The United States ranks joint 17th overall, with a score of 5.19, placing it well outside the top tier for business expansion despite its global scale and influence.
While the US performs strongly on GDP growth (2.8%), well above the global average of 1.5%, it scores significantly lower on political stability (47.4%) than the benchmark of 67.2%. Its corporate tax rate (21.0%) sits slightly below average but is less competitive than those of higher-ranking markets such as Ireland (12.5%) and Poland (19.0%).
Interest in expanding into the US remains high, with more than 5,600 annual searches for starting a business. But size and visibility don’t always translate into the best conditions for entering and scaling within a new market.
For businesses expanding internationally, the US represents a high-opportunity but more complex market. Variability across states, regulatory differences, and operational scale can introduce additional challenges that are less pronounced in smaller, more consistent markets.
Several of the world’s largest markets rank outside the top tier for business expansion, highlighting a clear gap between scale and overall expansion readiness.
Germany, the third-largest market globally with a GDP of over $5 trillion, ranks 35th overall. Its economy contracted by 0.5%, compared to a global average growth rate of 1.5%, indicating slower momentum despite its size. France ($3.36 trillion) and Italy ($2.54 trillion) show a similar pattern, ranking 21st and 25th respectively, with modest growth and higher unemployment contributing to lower scores.8
Japan, the fourth-largest market globally at $4.28 trillion, ranks 7th. While it performs more strongly overall, its cultural distance from the UK (6.7) sits above the study average of 5.5, indicating greater differences in areas such as hierarchy, communication, and decision-making. These factors can introduce additional challenges when establishing and integrating local teams.
These findings highlight a consistent trend across the dataset. Market size alone does not guarantee favorable conditions for expansion. Slower growth, higher unemployment, or less competitive operating environments can limit how quickly businesses scale, even in large, well-established markets.
For decision-makers, this reinforces the importance of looking beyond size. Markets that offer a stronger balance among growth, stability, and operating conditions – alongside closer cultural alignment – may provide more effective entry points for international expansion.
“Expanding into a new market is often approached as a structural challenge – securing the right tax setup, hiring locally, and navigating regulation. In practice, the biggest barriers tend to be operational.
How decisions are made, how feedback is delivered, and how relationships are built can vary significantly between markets. In unfamiliar environments, these differences can slow progress, create misalignment within teams, and affect how quickly a business gains traction.
This is particularly relevant when entering markets with strong fundamentals, but that feel less familiar. Without a clear understanding of local expectations, businesses can struggle to translate strategy into execution, even when the opportunity is clear.
For leadership teams, this shifts the focus from market selection to team readiness. Preparing employees to operate effectively across different cultural contexts through approaches such as cultural intelligence training can help reduce friction, improve collaboration, and accelerate integration.
In my experience, the difference between a successful expansion and a stalled one is not the market itself, but how well a business adapts to it.”
Country Navigator is a global provider of cultural intelligence solutions, helping organizations build the skills needed to work effectively across borders. Its platform supports individuals, teams, and leaders in developing the cultural awareness and behavioral adaptability required to improve collaboration, reduce risk, and drive performance in international markets. This report was created to provide a clearer, data-driven view of where organizations are most likely to succeed when expanding business operations outside the UK.
We analyzed each OECD country (excluding Israel) on the following factors.
1. Corporate Tax Rate: https://tradingeconomics.com/country-list/corporate-tax-rate
2. GDP Growth Rate: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG
3. Political Stability: https://data.worldbank.org/indicator/PV.PER.RNK
4. Unemployment Rate: https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS
5. Cultural Distance from the UK: Worldprism™ Cultural Distance (lower = better). Country Navigator’s Worldprism™ assessment. Each country’s national culture profile is compared against the UK’s across nine orientations on a 1–10 scale. WCD = sum of absolute positional differences. Score normalized so the most culturally aligned market scores 10/10 and the most distant scores 0/10.
6. Search Interest: We used Google Keyword Planner to collect the number of annual searches for "Start a business in [country]". Data for searches is global and between March 2025 and February 2026.
We created a normalized score out of 10 for each factor. We then averaged these normalized scores to calculate the overall score out of 10.
Additional sources:
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