Move to a place you are familiar with. It would take too much time learning the language, learning the culture, getting used to the local way of doing things, building your network, having support from friends/family. I don't think that the place where you found your startup is really that important.

It surely depends on the kind of startup you are building, but knowing the local industry / companies (names, people, market shares) has helped me a lot more then the actual (lack of) regulations/startup "feeling", cost of rent, size of town.