In this article, we will take a look at the 25 best foreign countries to do business in. If you want to skip our detailed analysis, you can go directly to 5 Best Foreign Countries to Do Business In.
The Global Business Environment: At a Glance
On February 13, the Global Entrepreneurship Monitor published their annual report on the global entrepreneurship outlook. The report emphasized the need to improve entrepreneurial education globally. Only five economies of the top 49 were deemed to have a satisfactory level of entrepreneurship education. On the flip side, between 2021 and 2023, countries like India and the United Arab Emirates considerably improved their ratings to “much better than satisfactory” from “less than satisfactory.” It is also important to note that in 37 out of 48 economies, women had an unsatisfactory rating. While a lack of access to resources was a major factor, the fear of failure among women was considerably higher than among men in most economies. Overall, economies with relatively lower tax rates and development-focused policies happened to rank higher on the index.
Economic Ties Between UAE and the United States
The United Arab Emirates and the United States have strong trade ties, with a direct relationship due to UAE oil exports. The United Arab Emirates is a global hub, housing over 1,500 American companies including ExxonMobil, Starbucks, and Bechtel. In FY 2023, the United States had a $18.3 billion trade surplus with the United States, the fourth largest trade surplus of the US. In 2007, the two countries formed the US-UAE Business Council to support commercial business relationships between the two countries, making it easier for companies in the US to form joint ventures with companies in the UAE. In 2012, the two countries came together to establish an Economic Policy Dialogue (EPD), an annual meeting to discuss strategies encapsulating the trade, development, and economic ties between the two.
The United Arab Emirates is the United States’ largest export market in the Middle East, with over $17 billion in exports logged in 2021. In 2019, UAE’s direct investments in the US reached $27.6 billion, adding over 12,000 jobs in the US. Companies in the UAE and the US have a history of strategic partnerships and collaborations. For instance, in 2009, Advanced Micro Devices, in the US, and Advanced Technology Investment Company (ATIC) of Abu Dhabi formed a joint venture, GlobalFoundries. The joint venture resulted in a semiconductor manufacturing company with a $4.2 billion semiconductor fabrication plant in New York. In 2014, ATIC announced an additional $10 billion investment to facilitate expansion.
READ ALSO 10 Best E-Commerce Stocks To Invest In and 15 Best Places in Michigan for a Couple to Live on Only Social Security.
How is XOM Leveraging Ties between the US & UAE
Exxon Mobil Corporation (NYSE:XOM) is a leading natural gas and oil company in the United States. Exxon first originated as a marketer of Kerosene in the United States and now operates as one of the largest petroleum and petrochemical companies. It engages in the exploration and production of crude oil and natural gas, sells lubricants, waxes, and resins, manufactures petrochemicals, and transports oil, gas, and petroleum products.
Exxon Mobil Corporation (NYSE:XOM) has a strong presence in the United Arab Emirates. It first entered the UAE in 1939 and began exploratory drilling in 1950. The first discovery was not made until 1960 and the first shipment was made from Abu Dhabi in 1963.
In 2006, ExxonMobil became a joint venture partner in Zakum Development Company (ZADCO) and established the ExxonMobil Technology Center in Abu Dhabi in the same year. ZADCO agreed to deliver 750 thousand barrels per day in 2009 using advanced technology. The company then formed a joint venture with Abu Dhabi National Oil Company (ADNOC). ADNOC was formed as a merger between ZADCO and Abu Dhabi Marine Operating Company in 2017.
The joint venture with ADNOC aims to develop Upper Zakum, the second-largest offshore oil field. The Upper Zakum project between the two countries is one of the largest projects under development using four artificial islands, the largest one equal to 135 football fields in the US. The project aims to target 1 million barrels per day by 2024 and has installed 32 new pipelines and 300 pipeline crossings so far.
According to Exxon Mobil Corporation’s (NYSE:XOM) annual report for 2023, the company completed 3.1 net development wells in Abu Dhabi and net acreage in the Upper Zakum oil concession was 81,000 acres at the end of the year. As of 2023, Exxon Mobil Corporation (NYSE:XOM) had assets worth $5.5 billion in the United Arab Emirates.
While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now that we have studied the global business landscape, let’s take a look at the best foreign countries to do business in.
An aerial view of an oil rig in the Texas Gulf Coast with people working on it, emphasizing the company’s oil & gas production interests.
Our Methodology
To come up with the 25 best foreign countries to do business in, we first sourced the National Entrepreneurial Context Index (NECI), 2023, from the Global Entrepreneurship Monitor. We then sourced the country-wise corporate tax rates (2024) from PwC, GDP per capita (2024) from the International Monetary Fund, and Foreign Direct Investment (2022) from the World Bank. We sorted the countries with the lowest corporate tax rates and countries with the highest GDP per capita and FDI, assigned them ranks corresponding to their number on each list, and then averaged all three ranks to get the ranking of our index. We then assigned ranks to the NECI and took the average of the NECI ranks and our ranks to develop our Insider Monkey Score. Our list is in descending order of the average rank of the two rankings, referred to as the Insider Monkey Score on our list. It is to be noted that our list is targeted at business owners from the United States, therefore, our list includes foreign countries outside of the United States.
Three countries, including the Netherlands, Luxembourg, and Switzerland have negative FDI indicating that the domestic economy is strong and has little bearing on its position as an attractive business destination.
About the National Entrepreneurial Context Index (NECI): The index consists of 13 indicators including access to finance, government policies, entrepreneurial programs, ease of entry, physical infrastructure, and culture. The list includes the top 49 economies and their composite rankings with 7.7 being the highest, and 2.8 being the lowest. Ranks were assigned according to the corresponding index value among the 49 economies.
Note: While Israel made it to the list of the best foreign countries to do business in, we decided to exclude it due to its current geopolitical situation.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
25 Best Foreign Countries to Do Business In
25. Luxembourg
Corporate Tax Rate (2024): 24.94%
Foreign Direct Investment (2022): $322.05 Billion (negative)
GDP per Capita (2024): $131,384.16
National Entrepreneurial Context Index (2023): 4.6
Insider Monkey Score: 17.33
Luxembourg ranks 25th on our list of the best foreign countries to do business in, with an Insider Monkey score of 17.33. Luxembourg has a combined corporate income tax rate of 24.94%, inclusive of CIT, solidarity surtax, and municipal business tax.
24. Spain
Corporate Tax Rate (2024): 25%
Foreign Direct Investment (2022): $51.43 Billion
GDP per Capita (2024): $34,045.17
National Entrepreneurial Context Index (2023): 3.8
Insider Monkey Score: 17.17
Spain has an Insider Monkey score of 17.17, making it one of the best foreign countries to do business in. Spain had $51.43 billion in foreign direct investment in 2022, the sixth highest on our list.
23. Greece
Corporate Tax Rate (2024): 22%
Foreign Direct Investment (2022): $7.95 Billion
GDP per Capita (2024): $23,965.78
National Entrepreneurial Context Index (2023): 4.6
Insider Monkey Score: 17.00
Greece is one of the best foreign countries to do business in, ranking 23rd on our list. Greece has a corporate tax rate of 22%, as of January 18, and a GDP per capita of almost $24,000.
22. Latvia
Corporate Tax Rate (2024): 20%
Foreign Direct Investment (2022): $1.16 Billion
GDP per Capita (2024): $24,193.74
National Entrepreneurial Context Index (2023): 5
Insider Monkey Score: 16.50
Latvia has an Insider Monkey score of 16.5, contributing to its ranking on our list of the best foreign countries to do business in. Latvia has a corporate income tax rate of 20%, payable only after profits are distributed.
21. Poland
Corporate Tax Rate (2024): 19%
Foreign Direct Investment (2022): $36.9 Billion
GDP per Capita (2024): $23,013.88
National Entrepreneurial Context Index (2023): 4.3
Insider Monkey Score: 16.17
Poland ranks 21st on our list of the best foreign countries to do business in, with an Insider Monkey score of 16.17. Poland logged $36.9 billion in FDI in 2022, the 13th largest on our list.
20. Slovenia
Corporate Tax Rate (2024): 22%
Foreign Direct Investment (2022): $2.18 Billion
GDP per Capita (2024): $34,026.49
National Entrepreneurial Context Index (2023): 4.8
Insider Monkey Score: 15.67
Slovenia has an Insider Monkey score of 15.67, contributing to its ranking on our list of the best foreign countries to do business in. Slovenia has a corporate income tax rate of 22% and a GDP per capita of over $34,000.
19. Oman
Corporate Tax Rate (2024): 15%
Foreign Direct Investment (2022): $5.48 Billion
GDP per Capita (2024): $20,913.30
National Entrepreneurial Context Index (2023): 5.4
Insider Monkey Score: 14.67
Oman ranks 19th on our list of the best foreign countries to do business in with an Insider Monkey score of 14.67. Oman has a corporate tax rate of 15%. It has a National Entrepreneurial Context Index score of 5.4.
18. Netherlands
Corporate Tax Rate (2024): 25.8%
Foreign Direct Investment (2022): $12.08 Billion (negative)
GDP per Capita (2024): $63,749.90
National Entrepreneurial Context Index (2023): 5.9
Insider Monkey Score: 14.67
Netherlands is one of the best countries to do business in with a National Entrepreneurial Context Index score of 5.9. The corporate tax rate in the Netherlands is 25.8%, last reviewed on July 1, and it has a GDP per capita of $63,750.
17. Japan
Corporate Tax Rate (2024): 23.2%
Foreign Direct Investment (2022): $49.29 Billion
GDP per Capita (2024): $33,138.16
National Entrepreneurial Context Index (2023): 4.4
Insider Monkey Score: 14.50
Japan has an Insider Monkey score of 14.5, contributing to its ranking on our list of the best foreign countries to do business in. Japan logged $49.29 billion in foreign direct investment in 2022.
16. India
Corporate Tax Rate (2024): 40%
Foreign Direct Investment (2022): $49.94 Billion
GDP per Capita (2024): $2,730.77
National Entrepreneurial Context Index (2023): 6.6
Insider Monkey Score: 14.17
India ranks 16th on our list of the best foreign countries to do business in. India has a rapidly developing economy, serving as an attractive destination for large foreign companies. Foreign companies in India must pay a corporate income tax of 40%, as of May 15. India has the second-highest score on the National Entrepreneurial Context Index.
15. Estonia
Corporate Tax Rate (2024): 20%
Foreign Direct Investment (2022): $1.65 Billion
GDP per Capita (2024): $31,854.78
National Entrepreneurial Context Index (2023): 5.9
Insider Monkey Score: 13.50
Estonia is one of the best foreign countries to do business in, with an Insider Monkey score of 13.5. Estonia has a corporate income tax rate of 20% and a GDP per capita of $31,855.
14. China
Corporate Tax Rate (2024): 25%
Foreign Direct Investment (2022): $180.17 Billion
GDP per Capita (2024): $13,136.48
National Entrepreneurial Context Index (2023): 5.4
Insider Monkey Score: 13.33
China ranks 14th on our list of the best countries to do business in with an Insider Monkey Score of 13.33. China logged FDI worth $180.17 billion, the largest on our list, in 2022.
13. United Kingdom
Corporate Tax Rate (2024): 25%
Foreign Direct Investment (2022): $44.89 Billion
GDP per Capita (2024): $51,074.79
National Entrepreneurial Context Index (2023): 4.6
Insider Monkey Score: 13.17
The United Kingdom is one of the best foreign countries to do business in. The country has a GDP per capita of $51,078 and a corporate income tax rate of 25%, as of July 8.
12. Lithuania
Corporate Tax Rate (2024): 15%
Foreign Direct Investment (2022): $745.15 Million
GDP per Capita (2024): $28,407.20
National Entrepreneurial Context Index (2023): 6.1
Insider Monkey Score: 13.00
Lithuania ranks 12th on our list of the best foreign countries to do business in. Lithuania has an index score of 6.1 on the National Entrepreneurial Context Index. Lithuania has a corporate income tax rate of 15%.
11. Italy
Corporate Tax Rate (2024): 24%
Foreign Direct Investment (2022): $62.73 Billion
GDP per Capita (2024): $39,579.56
National Entrepreneurial Context Index (2023): 4.5
Insider Monkey Score: 12.67
Italy is one of the best foreign countries to do business in, with an Insider Monkey score of 12.67. Italy has a corporate income tax rate of 24% and logged $62.73 billion in foreign direct investment in 2022.
10. Norway
Corporate Tax Rate (2024): 22%
Foreign Direct Investment (2022):
GDP per Capita (2024): $94,659.92
National Entrepreneurial Context Index (2023): 4.7
Insider Monkey Score: 12.17
Norway ranks 10th on our list of the best foreign countries to do business in. Norway has the third-highest GDP per capita at $94,660. The corporate tax rate in Norway is 22%, as of July 1. However, for some companies in the financial sector, the corporate income tax rate may go up to 25%.
9. Switzerland
Corporate Tax Rate (2024): 8.5%
Foreign Direct Investment (2022): $10.99 Billion (negative)
GDP per Capita (2024): $105,668.98
National Entrepreneurial Context Index (2023): 5.5
Insider Monkey Score: 12.00
Switzerland is one of the best foreign countries to do business in. Switzerland has the lowest federal corporate income tax rate of 8.5% on profit after tax and/or 7.83% on profit before tax. It is to note that, cantonal and communicate corporate income taxes are added to federal corporate income tax rates leading to an overall tax rate ranging between 11.9% to 21%, depending on the company’s location in the country. Switzerland also has the second-highest GDP per capita of $105,669.
8. Republic of Korea
Corporate Tax Rate (2024): 24%
Foreign Direct Investment (2022): $25.04 Billion
GDP per Capita (2024): $34,164.99
National Entrepreneurial Context Index (2023): 5.8
Insider Monkey Score: 11.17
The Republic of Korea ranks eighth on our list of the best foreign countries to do business in. The country has a corporate income tax rate of 24%, as of June 13. The country had foreign direct investment worth $25.04 billion in 2022.
7. Qatar
Corporate Tax Rate (2024): 10%
Foreign Direct Investment (2022): $76.09 Million
GDP per Capita (2024): $81,399.52
National Entrepreneurial Context Index (2023): 6
Insider Monkey Score: 10.83
Qatar is one of the best foreign countries to do business in with an index value of 6 on the National Entrepreneurial Context Index. Qatar has a corporate income tax rate of 10%. However, for petrochemical and petroleum companies the minimum rate of 35% applies.
6. Sweden
Corporate Tax Rate (2024): 20.6%
Foreign Direct Investment (2022): $45.88 Billion
GDP per Capita (2024): $58,528.52
National Entrepreneurial Context Index (2023): 4.7
Insider Monkey Score: 10.50
Sweden ranks sixth on our list of the best foreign countries to do business in with an Insider Monkey score of 10.5. The corporate income tax rate in Sweden is 20.6%, as of January 24. The GDP per capita in Sweden is $58,528.
5. France
Corporate Tax Rate (2024): 25%
Foreign Direct Investment (2022): $105.42 Billion
GDP per Capita (2024): $47,358.56
National Entrepreneurial Context Index (2023): 5
Insider Monkey Score: 10.33
France is one of the best countries to do business in. France had a foreign direct investment of $105.42 billion in 2022, the second largest on our list. France boasts a GDP per capita of over $47,000 and has a corporate income tax rate of 25%.
4. Saudi Arabia
Corporate Tax Rate (2024): 20%
Foreign Direct Investment (2022): $28.06 Billion
GDP per Capita (2024): $33,039.93
National Entrepreneurial Context Index (2023): 6.3
Insider Monkey Score: 8.67
Saudi Arabia is the fourth best foreign country to do business in. The country ranks third on the National Entrepreneurial Context Index with a score of 6.3. Saudi Arabia logged $28.06 billion in foreign direct investment in 2022 and has a corporate income tax rate of 20%.
3. Canada
Corporate Tax Rate (2024): 15%
Foreign Direct Investment (2022): $49.98 Billion
GDP per Capita (2024): $54,866.05
National Entrepreneurial Context Index (2023): 4.8
Insider Monkey Score: 8.67
Canada is one of the best countries to do business in with an Insider Monkey Score of 8.67. The federal corporate income tax rate in Canada is 15%, and the provincial charge may range between 8% to 16%, not deductible for federal corporate income tax purposes.
2. Germany
Corporate Tax Rate (2024): 15.825%
Foreign Direct Investment (2022): $62.73 Billion
GDP per Capita (2024): $54,290.94
National Entrepreneurial Context Index (2023): 4.8
Insider Monkey Score: 8.50
With an Insider Monkey score of 8.5, Germany ranks second on our list of the best foreign countries to do business in. Germany had a foreign direct investment worth $62.73 billion in 2022, the fourth largest on our list. While the corporate income tax is 15.825%, Germany also has a trade tax ranging from 8.75% to 20.3%, depending on the location of the business.
1. United Arab Emirates
Corporate Tax Rate (2024): 9%
Foreign Direct Investment (2022): $22.74 Billion
GDP per Capita (2024): $53,916.03
National Entrepreneurial Context Index (2023): 7.7
Insider Monkey Score: 5.17
The United Arab Emirates ranks first in our list of the best foreign countries to do business in. UAE had the highest rank on the National Entrepreneurial Context Index and ranked second on the corporate tax ranking with a corporate tax of 9%, as of July 8.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.