Setting up a business is far from cheap, but the expenses don’t stop when you are up and running, and they will quickly add up before you know it. You have to consider the costs of paying your staff, finding a large enough office space to accommodate your needs, and then think about how you will keep that office space running.
However, the cost of these all-important aspects isn’t the same for everyone; across the globe, the cost of setting up a business will vary. We have studied locations worldwide and compared their utility costs from the cheapest offices to the most expensive water bills. If you are considering setting up a business but haven’t yet decided on a place, this information could prove extremely beneficial.
Business Costs Around the World Ranked
Annual Internet Cost Corporate Tax Rate Overall Score
The best city for
The Best City For Salaries:
Salaries are part and parcel of running a business, but an expensive area.
To work with the best in the industry, offering competitive wages is a must for businesses. To lower the costs, you could consider hiring remote workers. For example, in Mexico City, the lowest salary is £13,032.
The Best City For Office Rent
Palma de Mallorca
£15.04 per sq ft
Office space is not cheap to rent, which is why so many small businesses are turning to remote working.
However, this is not ideal for all firms and can be an expense they have to simply accept. On average, UK office space can range in price, from £34.40 up to £1,130.20, compared to £15.04 in Palma De Mallorca. If you can’t afford to move across the world to reap the rewards of cheap office space in Palma De Mallorca, then consider simply moving further out of the city where you are based.
The Best City For Water
£0.33 per 1,000L
Everything from your toilets to the kitchen tap, water expenses will be everywhere you look, adding to your utility costs.
The cost of water varies worldwide, but if you want the best deal, then Seoul offers the least expensive water rates at £0.33.
The Best City For Internet
£138.24 per year
A strong and affordable broadband connection is vital to any modern business, with Warsaw working out as the cheapest place for this essential utility, at £138.24 per year.
The Best City For Corporate Tax
Tax systems are more difficult to compare around the world, with countries often charging other fees on top of basic business taxes. However, the city with the lowest tax rate that we looked at was Budapest, where businesses pay at a rate of just 9%.
We began with a list of key cities in OECD countries, giving each a normalised score out of 100 on the following five factors, before taking an average overall score across all five factors.
According to PayScale.
Average Office Cost
The average prime office occupancy cost per square foot per annum, according to CBRE’s 2019 Global Prime Office Occupancy Costs.
Average water price data for businesses per 1000 litre according to researchgate.net.
Annual Internet Cost
The average annual cost of internet (60 Mbps or more, unlimited data, cable ADSL), according to Numbeo (monthly estimate multiplied by 12).
Corporate Tax Rate