The TMF Group’s 2024 Global Business Complexity Index (GBCI) was recently released. It highlights the challenges and opportunities businesses face when operating in different jurisdictions around the world. The have built an excellent interactive hub to explore the data.

The report ranks 79 jurisdictions based on the complexity of their business environments. Hint that’s not a good thing. Greece climbed to the top spot this year, followed by France, Colombia, Mexico, and Bolivia. To demonstrate the challenges these countries create for businesses, we’ve used an article TMF Group wrote to summarize the top 10 most complex countries to do business in.

Greece Takes the Crown (of Complexity)

Greece, which has consistently ranked high in complexity, particularly in accounting and taxation, saw its HR and payroll functions become even more intricate in 2024. A surge in new legislation and digitalization efforts that introduced new deadlines have compounded the challenges.

France: Complexities Offset by Stability

France, though ranking second, offers a stable trading environment due to its EU membership. However, complexities arise from unique accounting measures, French language requirements, and rising compliance costs associated with new regulations.

Colombia’s Potential Lies Beyond Complexity

Colombia’s high ranking stems from its intricate accounting and tax systems, with frequent reforms posing challenges.However, the country boasts over 100 international treaties and a recent shift towards a business-friendly political center could unlock investment opportunities.

Mexico: A Complex Neighbor with Advantages

Mexico’s ranking is driven by convoluted regulations and procedures. Despite this, the country benefits from its proximity to the US, participation in free trade zones, and ongoing efforts to improve digitalization and automation.

Navigating Bolivia’s Bureaucracy

Bolivia’s complexity stems from its outdated tax system, requiring physical presence and local language proficiency. In-person submissions and high sanctions for non-compliance add to the burden.

Turkey’s Troubles: Frequent Changes and Currency Woes

Turkey’s frequent tax law changes and hyperinflation pose significant challenges for businesses. The requirement for Turkish language proficiency in bureaucratic processes further complicates operations.

Brazil’s Ranking Shift: Complexity from Within and Without

Brazil’s ranking dropped this year, largely due to the increasing complexity of other jurisdictions. Tax legislation variations across different regions and unionization complexities necessitate strong local knowledge.

Italy Streamlines HR, A&T and GEM Remain Challenging

Italy has made strides in simplifying HR processes. However, accounting, tax, and general business environment (GEM) complexities persist due to frequent regulatory changes and a reliance on specialists for compliance.

Peru’s Uneven Terrain: Resources Abundant, Regulations Daunting

Peru offers natural resources, but intricate licensing processes and political instability make entry difficult. Labor market regulations tilt towards workers, and frequent tax law changes add another layer of complexity.

Kazakhstan: Balancing Change and Geopolitical Tensions

Intricate HR processes and increased scrutiny on international taxation pose challenges for businesses in Kazakhstan. The government is keen to attract investment and is actively reviewing legislation. The Ukraine conflict has impacted the region, but efforts are underway to mitigate disruptions and attract talent.

The TMF Group’s GBCI serves as a valuable resource for businesses seeking to navigate the complexities of operating in an international landscape. By understanding the challenges and opportunities presented by different jurisdictions,businesses can make informed decisions and develop strategies for success.