The 10 most complex jurisdictions for doing business in 2025
Whether you’re considering expansion, scaling your operations or optimising your global footprint, planning company growth can be a daunting prospect. That’s why knowing what to expect is crucial.
Offering guidance specifically aimed at successful growth, our Global Business Complexity Index (GBCI) and its corresponding report explore the range of factors impacting business complexity each year, providing an in-depth analysis and ranking 79 of the world’s most prominent markets.
But which jurisdictions rank as this year’s most complex? Let’s find out.
Our ranking aims to provide a clear understanding of the challenges that companies are likely to face in their chosen jurisdictions, allowing businesses to mitigate the potential risks of investment through strategic thinking and informed operations. While the markets below contain significant complexities, opportunities remain available to those who can navigate them successfully.
The 10 most complex jurisdictions
1. Greece
Greece retains its place as our most complex jurisdiction, having moved into the top spot in 2024, up from 2nd in 2023. The country remains challenging for multinational businesses due to ongoing legislative changes, particularly in Accounting and Tax (A&T) and Human Resources and Payroll (HRP).
These changes require significant financial investment in technology and compliance. The MyData electronic books system, introduced in 2024, exemplifies this demand, with compliance costs ranging from €100,000 to €1.2 million, heavily burdening smaller entities. The rollout of digital payroll cards is further complicating the HRP landscape, affecting sectors like tourism and heavy industry. This shift towards electronic bureaucracy, while intended to streamline operations, has added complexity in the short-term.
For companies, these complexities mean higher costs and resource allocation towards compliance. Smaller entities may struggle to compete, discouraging new investments or expansions. In the long-term, while there is optimism for smoother operations, the current environment may deter potential investors due to high upfront compliance costs.
Regarding resilient pathways and trade corridors, maritime routes are predominant, with recent investments in major ports signalling improvements. Enhancements in road and rail networks, however, are slow. When it comes to supply chain risk, companies prefer diversification due to high labour and operational costs. While labour market trends show high turnover rates, increasing wages, and a shift towards work-life balance, although currently skewed towards personal life over work.
What we are experiencing is the transition from traditional bureaucracy to electronic bureaucracy. This involves there being multiple online platforms for various submissions, each requiring different credentials. Instead of visiting each department in person, we now navigate electronic systems. Although this new process will improve over time, it is currently in its early stages. As such, we should approach it with understanding and patience.
2. France
France retains the 2nd position for the second year in a row, due mainly to its intricate administrative and regulatory environment. This complexity is driven by multifaceted payroll regulations governed by over 700 Certified Public Accountants (CPAs), strong labour laws, and mandatory French accounting practices (Generally Accepted Accounting Principles). Foreign companies face significant challenges adapting to these local requirements, compounded by the necessity of using the French language in all administrative processes.
One of the most common issues for international clients is the difficulty in opening bank accounts, which often takes months to resolve. However, other processes, such as company formation, have become more streamlined with the country’s push towards digitalisation.
Looking ahead, mandatory electronic invoicing, set to come into force in 2026, is expected to add complexity, particularly for SMEs and multinational companies that use global ERPs. Despite these challenges, France's robust trade corridors and infrastructure investment are seen as positive developments. The government’s focus on enhancing logistics capacities and ensuring energy independence promises to further solidify France’s role as a key European hub for investment.
Labour market trends include stable turnover rates and increased productivity, due to remote working, which has been positively embraced both legally and practically. France continues to offer significant advantages, such as research and development tax credits, a high-quality workforce, and political stability, making it an attractive albeit complex market.
Many aspects are improving with increased digitalisation. However, the future implementation of electronic billing will inevitably introduce new challenges. This presents a significant advantage for tax authorities, as it helps prevent tax evasion. Nonetheless, businesses will face increased complexity due to the requirement to utilise platforms specifically approved by the French tax administration. Although the quality of financial data will be enhanced, the reform itself will add to the complexity of business operations.
3. Mexico
Mexico ranks 3rd in this year’s GBCI, up from 4th place in 2024, remaining an inherently complex jurisdiction due to its stringent rules and regulations. Recent legislative changes and government initiatives have aimed at improving working conditions, such as legislation ensuring factory workers have proper seating facilities. These changes reflect a focus on enhancing employee welfare, despite maintaining rigorous compliance requirements.
The shift towards remote working, influenced by post-COVID adjustments, sees employees valuing flexibility and work-life balance. The law mandating remote work contracts for employees working from home over 50% of the time has also advanced. This transition to hybrid models is gaining traction, though employers prefer a balance, with some in-office days to optimise office space and foster collaboration.
Despite recent changes in US trade policies under the Trump administration, nearshoring remains a key strategy, with Mexico positioning itself as a gateway to the USA and Latin America. Extensive trade agreements offer significant advantages for foreign investors. However, the long-term implications of these trade policy changes and potential retaliatory actions remain unclear.
The recent judicial system overhaul, aimed at creating a transparent and accountable structure, has had mixed reactions. While it adds complexity, it is viewed as necessary for ensuring long-term stability and investment security.
Mexico is more than just a nearshoring destination; it’s a strategic gateway to the United States and Latin America, providing a productive and efficient route to these markets. While Mexico is well-positioned, there are areas and specialities that require further development and training. Therefore, it's important that Mexico welcomes foreign investment that can help train and develop the skills of the Mexican workforce.
4. Turkey
Turkey rises to 4th in this year’s GBCI, up two places from 2024. Its complexity is driven by intricate accounting and tax regulations, as well as strict language requirements. Immediate regulatory changes create significant challenges for multinational clients, who struggle with swift adaptation. For instance, the introduction and subsequent rollback of inflation accounting principles significantly impacted businesses.
The persistent use of Turkish language in administrative processes, coupled with frequent regulatory updates, adds to this complexity. Economic instability, too, poses ongoing challenges.
Trade corridors primarily involve Middle Eastern countries, and while geopolitical factors play a role, the choice of trade routes is influenced by ease of regulations and timelines. The manufacturing sector benefits from tax incentives aimed at attracting foreign investment.
The Turkish labour market faces a skills gap due to ‘brain drain’, with skilled workers seeking opportunities outside the country, pushing companies to conduct multiple pay reviews to retain talent amidst high inflation. Companies are also increasingly adopting technology to improve service delivery, especially in the A&T sector.
At the end of 2023, the government announced that inflation accounting would be applicable, but they didn't announce the application principles until March 2024. After that, the initial principles were announced, and quarterly applications were expected. However, they couldn’t finalise these principles, leading to a cancellation of the quarterly applications. This created significant confusion and complexity for businesses.
5. Colombia
Colombia moves from 3rd to 5th in this year’s ranking. The business environment remains complex due to political instability and entrenched bureaucracy. The shift from a right-wing to a left-wing government has created policy uncertainty, likely to persist until the 2026 elections. Despite political turbulence, robust institutions like Congress and the judicial system provide some stability.
Bureaucracy and red tape complicate business operations, with many procedures still requiring wet-ink signatures. The past year has also seen multiple legislative changes, such as tax, labour, and pension reforms.
Key trade corridors remain unchanged, with significant activity between Colombia and the United States, Europe, and neighbours like Ecuador and Venezuela. Increasing relations with the Mainland of China are counterbalanced by US interests. Technology adoption in the supply chain has accelerated, particularly in the financial services and labour sectors, driven by local startups and supportive government policies like the ‘Economía Naranja’ (orange economy), an initiative supporting a range of technology and creative industries.
Remote and hybrid working trends continue too, with the government bringing through supportive regulations. Flexibility in work models remains crucial in large cities.
Colombia is currently facing multiple significant economic and political challenges simultaneously. Consequently, it is difficult to avoid implementing various reforms. Changes are needed in areas such as gas, electricity, security, and public finance, given the ongoing political and economic developments. It is anticipated that these transformations will continue, at least until 2027.
6. Brazil
Brazil has moved from 7th to 6th in this year’s GBCI ranking. Similar to 2024, A&T complexities remain the primary drivers of operational challenges. The integration of tax systems with accounting standards like IFRS or US GAAP adds significant complexity, especially with ongoing tax reform discussions in Brazil.
Brazil is seeing increased technology adoption, significantly enhancing transaction monitoring and compliance through electronic reporting systems. This shift has facilitated real-time oversight but introduced additional layers of complexity and risk management for businesses. The Brazilian government is also undertaking significant infrastructure projects, investing R$2 trillion to improve trade corridors, focusing on highways, railways, ports, and airports.
On the whole, companies are focusing meticulously on logistical risks and environmental compliance, with a growing reliance on technology to monitor supply chains. The labour market has shown resilience with the adoption of hybrid work models, particularly in service-driven regions like São Paulo. As such, despite political and economic instability, Brazilian businesses are increasingly prepared to navigate challenges through strategic partnerships and technological integrations.
Brazil has increasingly integrated technology to enhance surveillance of financial transactions, aiming to prevent money laundering and other illicit activities. While these advancements facilitate smoother operations, they also introduce increased risk and compliance challenges due to transaction reconciliations being processed in real-time. Although now heavily improved by technology, doing business in Brazil remains complex in terms of general governance, particularly over the transactions that ensure taxes are recorded and paid accordingly.
7. Italy
Ranking 7th in GBCI 2025, Italy has seen notable developments in its business environment over the past year. HRP services remain the primary driver of complexity due to Italy's protective labour laws and comprehensive welfare system. Frequent changes in social security contributions and new regulations further increase the administrative burden.
In the legal and tax sectors, adjustments in tax rates have aimed to reduce the burden on lower earners, while increasing it for higher-income individuals. New rules now require expense reimbursements to be processed using credit cards rather than cash, adding another layer of compliance for businesses.
Italy's strategic position in the European logistics network remains strong, supported by its harbours and ongoing infrastructure investment. There has been a pivot from the Silk Road Agreement with China’s Mainland to the India Middle East and Europe Economic Corridor (IMEC), due to the Silk Road’s limited value and associated risks. This development in trade corridors highlights a strategic shift in trade relationships without significantly changing existing trade corridors.
While COVID did push Italy towards more flexible work arrangements, a more traditional work culture still holds sway. The country faces demographic challenges too, with a low birth rate impacting the available workforce. However, remote working has been positively received by employees, especially among those with caregiving responsibilities.
In Italy, organisations often underestimate the expenses associated with employees. Many mistakenly assume that terminating employment contracts is straightforward. In reality, it involves additional costs and complexities. Italian labour laws require specific reasons for contract termination, and even though the process has become somewhat simpler compared to previous years, it remains challenging. Employees frequently seek legal counsel and request additional compensation upon termination.
8. Bolivia
Bolivia shifts from 5th to 8th place in this year’s rankings. However, the country continues to face significant challenges in A&T and HRP, primarily driven by a reliance on physical compliance documentation. This requirement is hampering digital transformation efforts.
Macroeconomic instability, currency exchange restrictions, and political tension also remain serious hurdles to foreign investment, which present barriers to market entry and economic growth.
The labour market in Bolivia remains stable, though the economy is flat due to continuous political infighting and inflationary pressures. Opportunities for growth are present in infrastructure projects, including roads, bridges, and hospitals, which promise to stimulate job creation and economic activity. However, these projects are not yet at the scale necessary for significant economic growth.
The potential of Bolivia's natural resources, such as lithium and gas, remains underutilised due to current regulatory and economic conditions. However, there is potential for a significant change in government in the 2026 elections, which could potentially make Bolivia more appealing to investors in said sectors.
Both GEM and HRP are complex in Bolivia due to challenges in digitalising information. The authorities insist on physical documentation for filing and presenting workers' nominations, which has long been the traditional norm. Additionally, Bolivia faces significant obstacles in attracting foreign investment primarily due to macroeconomic issues. The foreign exchange market is particularly problematic, with stringent regulations on converting dollars to Bolivianos and vice versa. These currency exchange restrictions pose a serious challenge for companies operating in Bolivia.
9. Kazakhstan
Kazakhstan moves from 10th place to 9th in this year’s ranking. The country continues to exhibit high complexity across the GEM, A&T, and HRP sectors. This is due to outdated, paper-heavy processes that require significant local presence, such as a director on-site. GEM and A&T are particularly challenging because of stringent scrutiny and unique local legislation that differs from Euro-American standards.
Over the past year, new data privacy legislation has been introduced, requiring initial data processing to occur within Kazakhstan. This has forced companies to overhaul their data workflows and technology setups, adding to their operational burden.
There is also a persistent reliance on paper documentation, frequently checked by authorities. Additionally, potential upcoming requirements for documents to be in the Kazakh language could further increase administrative burdens.
Despite these complexities, the labour market shows promising trends. This includes an increasing number of foreign companies setting up operations in the region due to geopolitical shifts. This has led to more job opportunities and investment in local infrastructure. However, the market remains challenging, with low unemployment and high turnover rates creating difficulties in staff retention. This is compounded by high accommodation inflation, driven by external investments and the significant ‘brain drain’ as talent migrates abroad.
From the beginning of this year, the legislation regarding data privacy and the storage of personal and confidential data has changed. Now, the initial processor needs to be in Kazakhstan. This means new technology, a new process, and also making sure that you have staff in Kazakhstan who can implement and manage it.
10. China’s Mainland
The Mainland of China moves into the top ten for 2025, up from 11th place in 2024. Complexity in the jurisdiction is a result of frequent regulation changes, alongside regional disparities. The Chinese laws, especially in A&T and HRP, are updated frequently to adapt to economic and social changes. This requires companies to constantly align their compliance efforts with new requirements. Additionally, regional regulations vary across the numerous provinces, adding another layer of complexity.
In the past year, new laws such as data security and beneficial ownership have been introduced, impacting cross-border data transfers and transparency. The implementation of new policies also often occurs swiftly, without extended consultation periods, adding to the unpredictable landscape.
Despite these challenges, the Mainland of China continues to offer incentives to attract investment, particularly in designated free trade zones. The government has also promoted infrastructure development through the Belt and Road initiative to enhance trade logistics.
The supply chain landscape is diversified due to geopolitical tensions, notably with the US, leading to the establishment of new trade routes through South-east Asia, Africa, and Mexico. Meanwhile, labour costs are rising, particularly in high-demand sectors, with an increasing trend towards flexible and remote working arrangements, as accelerated by the Covid pandemic.
Chinese laws and regulations are frequently updated, with policies adjusted in response to economic changes and social needs. Businesses must continuously adapt to new compliance requirements, including tax policies, environmental regulations and labour laws, among others. Additionally, regulations in the Mainland of China may differ across various locations due to the country's size and diversity. Different tier 1, tier 2, and tier 3 cities, as well as each province and city, may have distinct local policies. Therefore, businesses operating in here must ensure compliance with local regulations specific to each area.
The Global Business Complexity Index 2025
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This article is an extract from the latest edition of the Global Business Complexity Index. Download the report in full here - GBCI 2025: Sink or swim – charting successful business growth in an increasingly uncertain world.
