When launching a new business, numerous factors have to be taken into consideration, including the location, the potential customers, and the expenses. The costs of setting up a business show great differences around the world. According to Utility Bidder, the Hungarian capital is the cheapest option for starting a business.
Utility Bidder is one of the UK’s leading energy brokers, offering energy procurement services to businesses. In its most recent study, the company examined 70 OECD (Organisation for Economic Co-operation and Development) countries based on a variety of criteria, such as average salary, annual office rent (per sq ft), cost of electricity per kWh, annual internet costs, and corporate tax rate.
With an overall score of 90.72, Budapest was selected as the most affordable city regarding business costs around the world.
Photo: www.utilitybidder.co.uk
Prague ranked 2nd with an overall score of 83.91, followed by Warsaw (82.20), Bratislava (78.13), and Helsinki (70.89).
The city with the lowest average salary was Mexico City, where the average person is paid €14,300, closely followed by Budapest, where the average salary is €17,316. The highest average salaries are in Switzerland and in the United States.
The average office cost from €16.70 per square foot in Palma de Mallorca to €177.02 per square foot in New York City. According to this criterion, the Hungarian capital ranked 55th with an annual office rent of €37.20. Seoul had the cheapest cost of electricity with €0.07 per kWh, and Budapest ranked 47th with €0.12 per kWh. The top 5 cities with the lowest annual internet costs are Warsaw (€12.79), Budapest (€13.58), Bratislava (€15.82), Prague (€19.26), and Seoul (€20.47).
The Hungarian capital has the lowest corporate tax rate (9%) out of all the 70 cities.
According to Utility Bidder’s ranking, the five most expensive places to launch a business are San Francisco, New York City, Tokyo, Boston, and Geneva.