Norway

Norway — like many of its Scandinavian counterparts, Norway has one of the highest tax rates in the world, with a total tax burden of around 40 to 45% of GDP, which funds its extensive welfare state. While a big tax burden is not associated with attracting business, the country's transparency and lack of corruption place it at ninth on the index.

Finland — following the same "Nordic model" as Norway and Sweden, the country comes highest on the index for government transparency and demonstrates a very low level of corruption. As well as scoring fifth on the "Open for Business" subindex, Finland is ranked seventh in the world for "Quality of Life."

Sweden — like Norway, Sweden operates a system of free-market capitalism combined with a comprehensive welfare state. While its tax environment is therefore not as favourable as other nations, it scores highly for government transparency and is largely free of corruption.

Denmark — northern Europe's Nordic countries continue to dominate the list. Denmark has low levels of corruption, high levels of transparency, a highly-skilled workforce, an average GDP per capita of £36,400 ($45,700), and a capital — Copenhagen — which serves as an industrial and financial hub.