e-Residency has released research showing that 88% of UK accountants and finance professionals were approached for advice on EU expansion in the past year, as SMEs reconsider how they enter European markets.
The findings, drawn from a survey of 250 UK-based accountants and finance professionals, suggest that Europe remains a live growth priority for UK startups and scaleups despite higher costs, regulatory complexity, and continued friction in cross-border trade.
Nearly half of respondents, 45%, said they had been asked for advice on EU expansion between three and five times over the past year, while 19% said they had received more than five requests. The majority, 87%, said they play a key advisory role in clients’ international expansion decisions.
As companies build around remote teams, cloud systems, and international customer bases, accountants are increasingly being asked to advise on operating models as well as tax and compliance. Almost two thirds of respondents, 62%, identified themselves as the primary decision-maker or adviser on financial strategy for their clients.
That advisory role is shaping the routes being recommended. Digital-only company formation and e-identity-based routes are now recommended by 47% of UK accountants, allowing companies to establish and manage operations remotely. The same proportion recommend partnering with a local distributor or reseller, while 45% recommend hiring EU-based staff through an employer of record.
Traditional subsidiaries are still part of the expansion toolkit, but they are no longer the default recommendation for many advisers. Setting up a subsidiary in an EU country is recommended by 33% of respondents, suggesting that accountants are matching EU entry routes more closely to the way modern SMEs are structured and staffed.
Liina Vahtras, Managing Director at e-Residency, said: “The UK-EU reset matters, but businesses cannot wait for policy alone to solve every barrier to growth. SMEs need practical routes into Europe that reflect how they operate: digitally, internationally and often without a large physical footprint.
“At e-Residency, Estonia’s government-backed digital identity programme that enables entrepreneurs to establish and manage an EU company remotely, we are seeing growing interest from UK businesses and the accountants advising them. Accountants are increasingly helping businesses identify credible routes into Europe. With clearer guidance and stronger proof points, more startups and scaleups will be able to make informed decisions about expansion rather than ruling Europe out as too complex.”
Caution remains high. Concerns around data security and digital identity were cited by 41% of respondents as a barrier to recommending digital company setups more widely. More than a third, 36%, cited a lack of clear UK tax or regulatory guidance, while 35% pointed to perceived complexity for clients. The same proportion were concerned about how investors would view these structures.
Internal capability is also holding back recommendations. More than a quarter of respondents, 27%, cited limited expertise within their own firm as a barrier to suggesting digital routes, indicating that advisory readiness has not fully caught up with the expansion models now being discussed by clients.
When asked what would help, accountants favoured practical material that could withstand client, tax, and investor scrutiny. Practical toolkits or templates from trusted providers, including pricing models and risk checklists, were requested by 44% of respondents. Guidance and endorsement from UK professional bodies including the ICAEW, ACCA, and ICAS were cited by 42%, while 41% wanted better client-facing information and the same proportion wanted more case studies of UK startups using these structures successfully.
The research points to a more strategic role for accountants in SME international growth. Expansion advice is increasingly tied to digital identity, investor confidence, tax certainty, and operating model design, rather than simply the mechanics of incorporating a local entity.
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