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.
Water is a basic necessity of life, but it does come at a price. A price that business owners must pay. Paying that monthly water rate doesn’t come down to choice, but an obligation. With water in demand in many places worldwide due to an increasing population and more consumption, water prices can be much higher than business owners expect. From flushing the toilet to washing our hands and drinking, water usage is at an all-time high, even in offices. Naturally, the more employees you have, the more water you will go through, which all adds up. For places that rely on water for operations, this can take the price even higher.Read more
Many don’t realise that the price they are paying their business water suppliers is much higher than it needs to be. Despite one in three being overcharged for their water rates and having to make difficult cuts within the company because of sky-high prices, there are ways to bring down the cost of water
You could try:
- Installing toilets that use less water to flush.
- Asking your employees to turn off the water while scrubbing their hands with soap.
- Change the faucets so that they automatically supply you with the right amount of water.
- Change water suppliers.
- Check regularly for leaks and drips.
- Buying more water-efficient equipment.
The best city for
Cheapest for average 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.
Cheapest for average 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.
Cheapest 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.
Cheapest 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.
Cheapest 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%.
Business Costs Around the World Ranked
Annual Internet Cost Corporate Tax Rate Overall Score
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