Best Cities in the UK for Expats to Start a Business in 2025
Introduction
The United Kingdom has long been a hub for entrepreneurs from all around the world. With its strong economy, diverse population, and well-established business infrastructure, the UK is often seen as the “gateway” to European and global markets. For expats looking to start a business, choosing the right city is a crucial step.
Each city in the UK offers something different—some are financial powerhouses, others are tech and innovation leaders, while some thrive in creative industries or manufacturing. As an expat, your choice of city can influence your business costs, access to customers, networking opportunities, and quality of life.
In this article, we’ll explore the best cities in the UK for expats to start a business in 2025, breaking down the pros, cons, and industries that thrive in each location. Whether you’re planning a tech startup, a consultancy firm, or a retail store, this guide will help you find the perfect UK base for your entrepreneurial journey.
Key Factors Expats Should Consider When Choosing a UK City
Before diving into specific cities, let’s outline the major factors expats should weigh when selecting their business location:
- Industry Fit – Some cities specialize in finance (London), others in technology (Cambridge, Manchester), and others in manufacturing (Birmingham). Align your choice with your sector.
- Cost of Living and Business Setup – London is lucrative but expensive; other cities may offer lower costs without sacrificing opportunities.
- Access to Talent – Universities and training centers in cities like Oxford, Cambridge, and Manchester produce highly skilled graduates.
- Connectivity – Transport, logistics, and international airports matter if you plan to trade globally.
- Expat Community – A supportive community helps newcomers integrate both socially and professionally.
- Quality of Life – Safety, housing, healthcare, and cultural vibrancy influence where you (and your family) want to live.
With these factors in mind, let’s look at the top 10 UK cities for expat entrepreneurs in 2025.
1. London – The Global Powerhouse
When it comes to business, London almost always takes the top spot. As one of the world’s most important financial centers, it offers unparalleled access to investors, clients, and global markets.
Why London is Great for Expats:
- Home to global financial giants, startups, and creative industries.
- Access to venture capital and angel investors.
- Huge international community, making it easier for expats to network.
- Strategic location for international trade.
Industries That Thrive in London:
- Finance and fintech
- Media and creative industries
- Professional services (law, consultancy, accounting)
- Technology and AI startups
Challenges:
- High cost of living and business setup.
- Intense competition.
Best for Expats Who Want: Global exposure, access to big investors, and a fast-paced environment.
2. Manchester – The Tech and Innovation Hub
Manchester is often called the “capital of the North” and has positioned itself as a thriving tech and innovation hub.
Why Manchester is Great for Expats:
- Lower costs than London but still well connected.
- Strong presence of startups and accelerators.
- Access to a large talent pool from universities.
- Excellent transport links to the rest of the UK and international markets.
Industries That Thrive in Manchester:
- Technology and digital innovation
- Media and broadcasting (BBC has offices here)
- Advanced manufacturing
- Life sciences
Challenges:
- Still developing compared to London, so global investor access may be limited.
Best for Expats Who Want: A balance of affordability, innovation, and growth potential.
3. Birmingham – The Industrial and Manufacturing Center
Birmingham is the UK’s second-largest city and a traditional hub for industry and manufacturing.
Why Birmingham is Great for Expats:
- Excellent infrastructure and lower costs.
- Strong transport links (HS2 high-speed rail will connect Birmingham to London in under an hour).
- Large and diverse population.
- Growing financial and service sectors.
Industries That Thrive in Birmingham:
- Manufacturing and engineering
- Automotive (close to Jaguar Land Rover)
- Finance and professional services
- Logistics and supply chain
Challenges:
- May lack the global prestige of London or Manchester.
Best for Expats Who Want: A strong base in manufacturing, logistics, and affordable setup costs.
4. Edinburgh – Finance Meets Innovation
Scotland’s capital is not only beautiful but also a strong player in finance, tech, and tourism.
Why Edinburgh is Great for Expats:
- Major financial services hub.
- Excellent universities producing skilled graduates.
- Growing startup ecosystem, especially in tech and AI.
- High quality of life.
Industries That Thrive in Edinburgh:
- Finance and banking
- Tourism and hospitality
- Technology and AI
- Renewable energy
Challenges:
- Smaller business community compared to London.
Best for Expats Who Want: A mix of finance, innovation, and lifestyle.
5. Leeds – Rising Star in Finance and Digital
Leeds is emerging as a key city for finance, legal services, and digital businesses.
Why Leeds is Great for Expats:
- Lower costs than London.
- Strong digital and fintech sector.
- Supportive business ecosystem for startups.
- Great location in Northern England.
Industries That Thrive in Leeds:
- Finance and banking
- Legal services
- Digital and IT
- Healthcare technology
Challenges:
- Smaller expat community compared to bigger cities.
Best for Expats Who Want: Affordable entry into finance and tech sectors.
6. Bristol – Creative and Green Business Leader
Bristol is famous for its creativity and green business initiatives.
Why Bristol is Great for Expats:
- Leading hub for sustainability and green technology.
- Thriving creative and cultural industries.
- Highly educated workforce.
- Strong connections with Europe.
Industries That Thrive in Bristol:
- Green energy and sustainability
- Aerospace
- Creative industries
- Technology and digital
Challenges:
- Smaller business scene compared to London and Manchester.
Best for Expats Who Want: Creative freedom, green innovation, and a vibrant cultural life.
7. Glasgow – Scotland’s Industrial and Creative Hub
Glasgow is Scotland’s largest city and known for its creativity and industrial heritage.
Why Glasgow is Great for Expats:
- Strong presence in engineering and creative industries.
- Affordable compared to Edinburgh.
- Large, diverse population with an active startup scene.
Industries That Thrive in Glasgow:
- Engineering and manufacturing
- Creative industries (design, music, film)
- Education and research
- Tourism
Challenges:
- May not have the same investor access as London or Edinburgh.
Best for Expats Who Want: Affordable entry into Scotland’s dynamic industries.
8. Cambridge – The Tech and Research Capital
Home to one of the world’s best universities, Cambridge is often called the UK’s Silicon Valley.
Why Cambridge is Great for Expats:
- World-class research facilities.
- Close links with London investors.
- Highly skilled talent pool.
- Strong innovation ecosystem.
Industries That Thrive in Cambridge:
- Biotechnology and life sciences
- Technology and AI
- Research and education
- Advanced engineering
Challenges:
- High costs due to demand.
Best for Expats Who Want: Cutting-edge research and innovation opportunities.
9. Oxford – Academia Meets Business
Like Cambridge, Oxford is an academic powerhouse with a strong startup culture.
Why Oxford is Great for Expats:
- Home to top research talent.
- Growing tech and science business community.
- Excellent connectivity to London.
- Prestigious reputation.
Industries That Thrive in Oxford:
- Biotechnology
- Education
- Tech startups
- Professional services
Challenges:
- High cost of living.
- Small size limits scalability.
Best for Expats Who Want: Prestige, academia, and research-driven business.
10. Liverpool – A City of Culture and Business Growth
Liverpool is famous for its cultural scene but also has a growing business ecosystem.
Why Liverpool is Great for Expats:
- Affordable business setup.
- Strong tourism and cultural industries.
- Supportive local government initiatives.
- Growing digital and creative industries.
Industries That Thrive in Liverpool:
- Tourism and hospitality
- Creative and digital businesses
- Logistics (strong port connections)
- Healthcare
Challenges:
- Smaller than Manchester or Birmingham in terms of business scale.
Best for Expats Who Want: Affordable living, strong cultural identity, and tourism-based businesses.
Comparison Table: Best UK Cities for Expat Entrepreneurs in 2025
| City | Strengths | Costs | Best For |
|---|---|---|---|
| London | Finance, global access, investors | Very High | Global exposure |
| Manchester | Tech, innovation, media | Moderate | Affordable innovation |
| Birmingham | Manufacturing, logistics | Moderate | Industry-focused expats |
| Edinburgh | Finance, tech, tourism | High | Lifestyle + finance |
| Leeds | Finance, legal, digital | Low | Affordable finance hub |
| Bristol | Green tech, creative industries | Moderate | Sustainability & culture |
| Glasgow | Creative, industrial, education | Low | Affordable Scottish hub |
| Cambridge | Research, biotech, AI | High | Cutting-edge innovation |
| Oxford | Academia, biotech, startups | High | Prestige + research |
| Liverpool | Tourism, creative, logistics | Low | Culture-driven businesses |
Tips for Expats Choosing a UK City
- Match your business sector with the city’s strengths.
- Consider costs vs. opportunities before committing.
- Build connections through local expat communities and business networks.
- Don’t overlook quality of life—a happier environment leads to better productivity.
- Explore government support programs available in different cities.
Conclusion
Choosing the right city is one of the most important decisions for expats starting a business in the UK. London offers global prestige but comes with high costs, while cities like Manchester, Birmingham, and Leeds offer affordability and growing opportunities. Edinburgh and Glasgow provide a mix of finance, culture, and quality of life, while Cambridge and Oxford cater to those in research-heavy industries.
In 2025, the UK remains one of the best countries for expat entrepreneurs, and with careful planning, you can find a city that aligns perfectly with your goals, budget, and vision.
The key is to balance opportunity, affordability, and quality of life—because building a successful business abroad is not just about profits, but also about creating a fulfilling new life in a city you can call home.
