LONDON, June 03, 2024 (GLOBE NEWSWIRE) — TMF Group, a leading provider of compliance and administrative services, has released the 11th edition of the Global Business Complexity Index (GBCI). The comprehensive report analyzes 79 jurisdictions, accounting for 93% of the world’s total GDP and 88% of net global FDI inflow, and compares 292 annually tracked indicators to provide data on key aspects of doing business across the globe.
The study reveals that Greece has taken the top spot as the most complex jurisdiction, both in Europe and overall, climbing from 6th in 2022 and 2nd in 2023, overtaking France in 2nd place this year. Meanwhile, Denmark, the Netherlands, the UK, and Jersey are among the easiest jurisdictions in Europe to do business.
The report highlights the challenges faced by foreign investors in Greece, where growing regulatory complexities, particularly in accounting, taxation, and human resources, can significantly increase compliance costs. Limited knowledge of these complexities often compels foreign investors to seek third-party advisors, only increasing costs.
France has also seen a rise in new regulations in 2024, including UBO identification and tax changes, which has increased compliance costs. In addition, stringent labor regulations designed to protect employees make workforce adjustments challenging, increasing hiring and retention costs.
On the other hand, Denmark’s efforts to streamline business activities through digitizing taxation processes have eased the burden for companies, while the Netherlands’ client-friendly approach to laws, regulations, and processes continues to make it an attractive destination for foreign investors.
“The GBCI outlines the challenges of doing business within certain European countries despite their apparent attractiveness,” said Frank Welman, TMF Group’s Head of EMEA. “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.”
The report provides valuable insights for companies looking to expand their operations in Europe, highlighting the importance of understanding the local complexities and seeking the right support to navigate the ever-changing regulatory landscape.