In 2016, the U.K. voted to leave the European Union in a complex and controversial vote despite The Balance revealing the majority would now vote to remain in the socio-political bloc. In the past, the U.K. was seen as an outstanding location for startups to form their business and incubate it for a successful future in either London or Manchester. The government of the U.K. has published many reports stating any Brexit option taken will result in a weaker U.K. economy than before Brexit, according to CNN.
Budapest, Hungary is a powerful contender
The problem facing the majority of businesses looking to start trading in the European Union is they want to be close to their home. Instead, those who wish to develop a Europe-wide startup following Brexit will be forced to look elsewhere for their startup options following the U.K. leaving the European Union.
Budapest, Hungary is seen by many experts as a great option because of the low rates of taxes and insurance premiums needed when looking to protect a startup. One of the main benefits of Budapest is the low rate of corporation taxes charged in the country of just nine per cent, around ten per cent lower than the taxes currently charged in the U.K.
One of the smallest differences between the U.K. and Budapest is the one-hour time difference seen between the European capitals. After Brexit, the U.K. will no longer have the borderless trade options of Hungary, resulting in the export and import cost throughout Europe being zero in Budapest.
A second option that should be explored by those looking to start a new business in the European Union comes at a time when the German Government has been exploring the options open to funding technology startups. Around half a billion Euros have been found by the German Government to fund new startups in Berlin where the technology hub of the nation is located.
Many new business owners hope to retain close links to the U.K. with Prague in the Czech Republic less than a two-hour flight from London. There are many issues to address which can provide a better standard of living in the Czech capital compared to that found in London. The majority of foods and drinks are far cheaper than those seen in the U.K. with more than 5,000 food establishments available in Prague.
For startups which are looking for the lowest possible costs, there is a lot to be said for looking at the options available in terms of working from home or co-working spaces. In Lisbon, Portugal, the tech hub of Portugal, the number of co-working spaces on offer has developed with over 40 spaces usually open for startups to look at.
Portugal offers two positive options for startups looking to develop their brand for the future with Porto offering a second startup hub for startups to look at moving to after Brexit. One of the main reasons for moving to Portugal for the majority of startups is the fact the city offers no time difference between the U.K. and the city and a low cost of living.