The Richest Countries In Europe

Despite being largely devoid of natural resources, Europe has managed to remain one of the richest regions on Earth for centuries. Europe's richest country is Luxembourg with a GDP per capita in PPP of $143,742. Second is Ireland at $133,895. And in third place in Switzerland at $91,931.These countries are ranked by GDP per capita PPP because it is by far the best way to assess how a country's resources impact the lives of citizens.

Top 10 Richest Countries In Europe (2024)

1. Luxembourg - $143,742

Known for its small size and high standard of living, Luxembourg has long been one of Europe's richest countries. Luxembourg's wealth comes from various streams. Luxembourg sits at a crossroads between Germany, France, Belgium, and the Netherlands giving it an edge in international business.

Additionally, Luxembourg's open policies towards foreign investment have enabled it to become a financial hub with many international banks operating in the country. Its efficient taxation system makes it attractive to businesses while providing financial incentives that help promote job creation and encourage entrepreneurs to operate within its borders.

2. Ireland - $133,895

The Emerald Isle has been able to establish one of the most vibrant economies in Europe. The Irish economy has seen consistent growth over the last few years due to its favorable taxation policy for businesses and investors.

This accessibility has attracted global companies looking for new opportunities, simultaneously creating additional employment opportunities. Moreover, Ireland benefits from EU membership and entry into European markets.

3. Switzerland - $91,931

The wealth and high living standards of Switzerland are well-known across the world. The mountainous country has long held a reputation for being a center of finance and banking that has actively tried to avoid war and conflict whenever possible. This unprecedented period of peace has created levels of prosperity that are the envy of many.

Switzerland's success is primarily due to its progressive economic policies, advanced financial infrastructure, and highly skilled workforce. The country has embraced technological advances in banking, manufacturing, and other industries, allowing it to remain competitive in an ever-changing global market.

4. San Marino - $86,989

The micro-nation of San Marino enjoys low taxation rates, strong international investment, and cutting-edge industries. All of which have transformed San Marino into a hub for enterprising individuals and businesses.

San Marino's well-built infrastructure makes it attractive to investors from abroad. The roadways are well maintained, while a tax system has been set up to provide foreign companies with beneficial incentives.

5. Norway - $82,831

Norway has never been a poor country but it experienced a surge of wealth in the early 20th century and has not looked back since. The country's natural resources - including vast oil reserves, hydropower, and minerals - have been vital to Norway's economic rise.

Norway is a global leader in transparency and corporate governance standards; this helps attract foreign capital and creates an environment conducive to fostering business growth. Doing business in Norway is easy and reliable with low levels of corruption and yellow tape.

6. Denmark - $77,641

Another success story coming out of Scandinavia is Denmark. Denmark has a very low unemployment rate, a sound banking system, and rapid growth in production sectors. These have all contributed to Denmark's prosperity.

The Danish government has implemented policies promoting innovation and competition, resulting in a thriving business environment. Its involvement in the European Union (EU) has also been key to Denmark's economic splendor.

7. Netherlands - $74,157

As a pioneer of international trade in the 1600s, the Netherlands has remained a key player in commerce well into the 21st century. As an open economy showcased by its large seaport in Rotterdam, the Netherlands takes full advantage of international trade in modern times.

It has a diversified industrial output and a highly developed services sector that supports domestic demand. An excellent transport system that connects the country with other countries across the region supports this sector significantly.

8. Iceland - $73,783

Often overlooked, Iceland has quietly been building up one of the more impressive economies in Europe for decades. This wealth can be attributed to three major factors: a high savings rate, sound banking policies, and a robust fishing industry.

The county's citizens have a high national savings rate; in fact, it is one of the highest in the world. This enables Icelanders to invest more in the economy and accrue greater rewards over time. Iceland also has implemented sound banking policies, enabling it to take advantage of opportunities for growth abroad and avoid financial disaster domestically.

9. Sweden - $69,176

Sweden is one of the few European countries that has access to vast natural resources. Something that the Swedish government has been key to take advantage of. With the recent war in Ukraine coming with a litany of sanctions against Russia, most European countries now rely solely on Sweden for key materials like lumber and iron.

Moreover, Sweden's prudent fiscal policies have encouraged growth and kept costs low. As such, businesses enjoy low taxes and generous incentives for investing in research and development. The combination of these factors has culminated has resulted in a sudden boost in the Swedish economy.

10. Andorra - $69,146

One of the lesser-known places in Europe, Andorra is located along the Pyrenees mountain range that separates Spain and France. The country's thriving tourism industry benefits from low taxes, allowing businesses to export goods without high overhead costs.

Its government engages in proactive fiscal policies, such as the targeted use of subsidies and investments that attract foreign capital. Moreover, private property rights are protected by strong laws and enforcement mechanisms - providing ample incentive for businesses to invest in the country.

Final Thoughts

Thanks to international trade, good business policies, and a robust banking sector, these European countries have managed to become rich. Their highly educated population has also been a key factor in generating wealth both on a personal and national level.

Top 20 Richest Countries In Europe (2024)