EU vs UK: What Businesses Need to Know When Expanding

3 Oct

Expanding into Europe is one of the most exciting steps a company can take — but also one of the most challenging. With so many routes into the market, businesses often ask me the same question:

👉 “Should we expand into the UK first or the EU, or both?”

It’s a fair question. Both options open doors to millions of customers, skilled workforces, and investment opportunities. But the right choice depends on your industry, your growth model, and how much risk you’re willing to manage at the beginning.

In this article, I’ll break down the key differences between the UK and the EU, mixing hard data with on-the-ground perspective. My goal is to help you see not just the numbers, but also the real-world implications for your expansion strategy

Market Reach: Scale vs Focus

The EU’s strength lies in scale: 27 member states and ~450 million consumers, generating around €16 trillion in GDP (Eurostat). That makes it the world’s second-largest economy, and a natural magnet for global trade.

The UK, by comparison, is smaller — 67 million people. But size isn’t everything. The UK consistently punches above its weight as a top-six global economy. In 2024, GDP grew by +1.1%, and London ranked #2 worldwide in the Global Financial Centres Index — home to over 250 foreign banks and a leading hub for investment.

➡️ Takeaway: If you need scale, the EU is unmatched. If you want speed, wealth, and global connectivity, the UK remains one of the strongest entry points.

Regulations & Compliance

The EU’s advantage is harmonisation. Once your product meets EU rules — CE marking, GDPR compliance — you can operate across 27 countries with relatively little additional admin. For regulated industries, this is a major draw.

The UK, since Brexit, has diverged with its own frameworks:

UKCA marking instead of CE
GDPR-equivalent rules (for now, with possible divergence later)
Employment rules that are often simpler and more flexible than in many EU markets

⚖️ Fact: The UK ranks 8th globally for ease of doing business (World Bank, 2023). Within the EU, leaders like Denmark and the Netherlands score high, while southern states can pose more bureaucracy.

➡️ Takeaway: The EU simplifies bloc-wide approvals. The UK rewards agility with a more flexible system.

Trade, Tariffs & Tax

The EU benefits from its customs union, eliminating tariffs between member states. But VAT and corporate taxes vary widely:

VAT ranges from 17% in Luxembourg to 27% in Hungary
Corporate tax from 9% in Hungary to the low 30s in Portugal (headline 20% plus surtaxes for high profits)

The UK requires customs declarations when trading with the EU, but it offers different advantages:

Corporation tax = 25% (main rate, 19% for small profits)
70+ global trade deals signed post-Brexit
Now a member of the CPTPP (effective 15 Dec 2024), giving access to Asia-Pacific markets worth £12 trillion GDP

➡️ Takeaway: EU trade is seamless within the bloc. UK trade can mean more paperwork with Europe — but opens valuable pathways to Asia-Pacific and beyond.

Talent & Workforce

The EU workforce is vast: over 200 million people across 27 countries. It’s multilingual, diverse, and strong in manufacturing and engineering. Labour laws, however, are generally protective, meaning less flexibility when hiring or restructuring.

The UK workforce, at 34 million, is smaller but highly specialised. It leads in finance, technology, defence, and creative industries. Employment law is more flexible than in most EU states, making it easier to adapt your team quickly.

📊 Fact: Over 30% of London’s workforce is international, and UK universities rank 2nd globally for research quality.

➡️ Takeaway: If you need multilingual, pan-European teams, the EU delivers. If you need speed and high-value skills, the UK is often the smarter start.

Business Culture

The EU is a mosaic of business cultures:

Germany → formal, precision-driven
Netherlands → pragmatic and direct
France → relationship-first
Southern Europe → informal and trust-based

The UK, by contrast, offers consistency: English as the global language of business, decision-making that balances relationships with results, and pragmatism at its core.

➡️ Takeaway: EU expansion requires cultural adaptation market by market. UK expansion offers one central, globally familiar approach.

Investment Trends

Despite Brexit, the UK remains a leader in attracting investment:

£18.6 billion in FDI inflows in 2023 (UNCTAD)
London ranked Europe’s #1 city for investment projects (EY)

The EU as a bloc still attracts more in raw volume — over €200 billion in 2023 (Eurostat) — but spread across multiple countries. Germany, Ireland, and the Netherlands are consistently strong performers.

👉 Many international firms still choose the UK first, not just as a market, but as a springboard. It’s easier to establish in London, prove your model in an English-speaking environment, and then expand across Europe. This is why the UK continues to be called the gateway to Europe.

Final Thoughts

So, EU or UK?

Go EU first if you need scale, manufacturing access, and multilingual reach.
Go UK first if you want speed, flexibility, and a global hub that extends beyond Europe.
Do both if you’re building for the long term — many companies still use the UK as their front door into Europe, then roll into the EU once their base is established.

At GreenApex, we do more than analyse the options — we guide you through the process from start to finish. That means: