If you are considering starting a construction company in the EU in 2026, it is worth comparing Belgium, France, the Netherlands, and Germany. These countries offer strong economies, stable business environments, and high levels of economic freedom.
However, the best choice depends on your business model: whether it’s greenfield construction, building renovation, or implementing innovative solutions such as modular construction and eco-friendly materials.
For small and medium-sized enterprises, the key factors are: speed of company registration, access to grants, simplicity of obtaining permits, and favorable tax conditions.
The team at VAV Synergy used verified data from leading analytical sources, including ING’s 2026 forecasts and the Index of Economic Freedom 2025, to provide an objective analysis.
The European Construction Market in 2026
After the downturn in 2024 and stagnation in 2025, the European construction sector is entering a period of moderate growth. ING forecasts production in the EU to increase by 1.5% in 2026, driven by green initiatives and digital transformation.
Key drivers of growth include:
- Public investment in energy-efficient renovations
- Affordable housing initiatives
- Sustainable infrastructure projects
Analysts note growing contractor confidence, with the number of permits for new housing in the EU increasing by 26% by September 2025 compared to the previous year.
Segments showing steady growth:
- Modular construction
- Eco-friendly materials
- Digital solutions such as BIM (Building Information Modeling)
- Infrastructure projects
Country Comparison: Key Indicators for 2026
| Indicator (2026) | Belgium | France | Netherlands | Germany |
|---|---|---|---|---|
| Sector Growth | +0.5% | +0.5% | +0.5% | +2.5% |
| Business Registration Time | 4–7 days | 25–35 days | 3–5 days (mostly online, English available) | 8–12 days |
| Registration Costs | €1,500–3,000 | €2,000–4,000 | €1,500–3,000 | €2,000–4,000 |
| Construction Permits | Slow; declining number of approvals | Long; environmental and bureaucratic hurdles | Very slow due to nitrogen crisis (emission reduction proof required) | Bureaucratic delays; projects may be postponed until end of 2026 |
| Corporate Tax | 25% (SME incentives) | 25.8% (R&D incentives) | 25.8% (small business relief) | ~30% effective (innovation incentives) |
| VAT (Standard / Renovation) | 21% / 6% | 20% / 5.5–10% | 21% / 9% | 19% / 7% |
| Economic Freedom Index 2025 (World Rank / Score) | 35 | 63 | 10 | 22 |
| Key Challenges | High wages, material cost pressures, low-margin small firms | Strikes, labor shortages, low margins (<2%), cautious bank lending | Nitrogen crisis, land scarcity, shortage of skilled workers | Bureaucracy, delays in infrastructure projects |
France: Strong Innovation Potential, But Bureaucratic Hurdles
France is a country with high potential for innovative construction, but it requires patience with administrative processes. According to the Index of Economic Freedom 2025, France ranks 63rd globally (64.4 points).
Pros:
- Government investment programs like France 2030 and Bpifrance support green projects
- Reduced VAT for renovations (5.5–10%) benefits energy-efficient work
- Corporate tax of 25.8% with R&D incentives for innovative projects
Cons:
- High wages, labor shortages, frequent strikes
- Low profit margins (often <2%), increasing late payments and bankruptcies
- Banks cautious with construction financing
Best suited for: ambitious, innovation-driven projects.
Belgium: Ideal for Renovation Projects
Belgium is particularly attractive for companies focusing on building renovations. A 6% VAT on demolition and renovation (compared to 21% for new construction) provides a real boost for small businesses.
Pros: low taxes, relatively stable business environment
Cons: slow permit processes, high construction wages, bankruptcies due to inflation
Netherlands: Quick Start, But Beware the Nitrogen Crisis
The Netherlands offers one of the fastest and easiest ways to start a construction business: company registration takes 3–5 days online, much is available in English, and the country ranks 10th globally in economic freedom (78.2 points).
Pros: fast registration, grants for green materials and modular homes, strong innovation support
Cons: nitrogen crisis delays new projects, limited construction land, complex permit procedures, grid congestion
Promising sectors: renovation, commercial buildings, prefabricated construction
Germany: Highest Growth, But Bureaucracy Remains
Germany is projected to see the strongest growth in the construction sector (+2.5% in 2026). Investments in infrastructure and sustainable construction are driving the market.
Pros: grants for R&D and sustainability, recovery of the new housing market, large infrastructure investments
Cons: high bureaucracy, labor shortages, rising construction material costs
Recommended for: companies focused on infrastructure projects or green technologies.
Summary
- Netherlands: best for small companies – fast setup, innovation-friendly, English facilitates communication; avoid sectors heavily impacted by nitrogen regulations
- Belgium: ideal for renovation projects – 6% VAT protects margins
- Germany: strong growth potential (+2.5%), large investments, but more bureaucracy
- France: attractive for ambitious projects with innovation grants, but challenging for newcomers
Labor Shortages Are Manageable
When planning to open a construction company in the EU, labor shortages are a common challenge across all countries.
A practical solution is to hire qualified professionals from Eastern Europe. VAV Synergy can be a reliable partner, offering:
- Recruitment of skilled workers
- Legalization (A1, insurance)
- Accounting and legal support
- Efficient communication in your preferred language
- Deployment on site within 7–10 days
If you are looking for reliable candidates, simply fill out the form via the link, and we will match you with qualified specialists as soon as possible.
