A Hong Kong-based payment gateway company recently approached us with a classic expansion dilemma: where to establish their European base to serve UK, Irish, and Nordic markets.
The Challenge
The founder planned to relocate personally but had no existing EU/EEA directors. They needed full payment institution licensing to operate across Europe, with plans to hire immediately and establish genuine business operations rather than just a shell company.
The Analysis
We evaluated five jurisdictions across three key criteria: regulatory efficiency, tax optimization, and operational flexibility.
Ireland emerged as the clear winner. The 90-day licensing timeline, 12.5% corporate tax rate, and critically – the EUR 25,000 bond option that eliminates director residency requirements – made it perfect for their situation. The English-language operations and strong Hong Kong tax treaty provided additional advantages.
Netherlands offered the fastest licensing in Europe (5-6 months) and Europe’s most developed fintech ecosystem, but required different structuring approaches for non-EU founders.
Estonia presented an intriguing digital-first option with 0% tax on retained profits and complete digital management capabilities, ideal for capital-efficient growth.
Denmark surprised us with no director residency requirements and strong Nordic market access, while Germany offered scale but at significantly higher complexity and cost.
The Brexit Factor
Here’s what many miss: no EU location provides automatic UK market access post-Brexit. You need separate UK licensing regardless of where you establish your EU base. This makes Ireland’s common law system and regulatory relationships even more valuable.
Key Takeaways
- Director residency requirements can be deal-breakers – always check bond/alternative options
- Licensing timelines vary dramatically (3 months in Ireland vs 12+ months elsewhere)
- Tax treaties between your home country and expansion target matter more than headline corporate rates
- Post-Brexit, think dual EU/UK strategy from day one
The Decision
The company chose Ireland, citing the combination of regulatory speed, tax efficiency, and operational simplicity. Total first-year investment: EUR 1.2-2.0 million for full EMI licensing and 8-person local team.
For Hong Kong companies expanding to Europe, Ireland consistently delivers the best risk-adjusted returns – especially when English-language operations and common law familiarity factor into management complexity.
The EU passporting system means once licensed in Ireland, they can serve customers across all target markets with a single authorization – a compelling advantage that influenced their final decision.
Need help with your European expansion strategy? We specialize in fintech and payment company structuring across EU jurisdictions.
