An investment company in the EU in which countries is the model viable

According to the European Commission’s estimates, just through InvestEU and related instruments more than €372 billion of private and public investments in the EU are planned to be mobilized by 2027 – a substantial portion of this volume goes through licensed investment firms and funds. For an entrepreneur from Europe, Asia or the CIS this is no longer just a figure from a report, but a question: which investment company to build in the EU and in which country so as not to drown in AML, sanctions and ESG requirements, and to obtain a sustainable ROI and access to EU financing.

At COREDO I regularly see the same request: “We want to enter Europe, but we don’t want to experiment with our own license and bank account. Where is the model actually viable in 2025 and what have the new AML and ESG rules changed?”

Regulators are strengthening requirements for beneficiaries in the EU in 2025, a supranational AMLA is being launched, CSRD and CS3D are coming into force, and sanctions filters are being tightened. At the same time the EU is simultaneously promoting the Green Industrial Plan, the Innovation Fund, the Digital Europe programme and STEP – all this creates a unique window of opportunity for those ready to build a structure properly, not “on the bare minimum”.

In this article I will analyze in which countries the EU investment company model is most viable in 2025, how the new AML requirements for companies in the EU and the ESG regime affect registration and scaling, and what steps it makes sense to take now. If you read to the end, you will not get an abstract “idea of Europe”, but an actionable plan: where to register a company, how to go through Licensing and how to plug into EU funding flows for businesses without unnecessary risks.

Top EU Jurisdictions for Investments

When I evaluate viable EU jurisdictions for investment, I look at more than just the tax rate. What matters is a combination: the regulatory regime for investment firms, banks’ attitude toward non-residents, licensing infrastructure (MiFID II, crypto/payment/forex licenses), access to grants and the stability of the law.

For the purposes of the article I focus on jurisdictions that the COREDO team regularly works with on investment company structures and financial licenses: Ireland, Cyprus, Malta, Portugal (including Madeira), Hungary, Spain, Sweden.

2025 Country Ranking by Profitability

In 2025 four criteria came to the forefront that I always discuss with clients before starting company registration in the EU:

• Minimum EU share capital and the real requirements of regulators/banks (not just the letter of the law).
• Tax burden and the possibility of transparent structuring (substance, participation in holding structures).
• Reliability and “predictability” of the EU banking system for business.
• Access to financing and EU programs: InvestEU, the STEP investment platform, the EU Innovation Fund, the Digital Europe Programme.

Summary table for key jurisdictions (figures averaged from European Commission data, national regulators and corporate registry statistics for 2024–2025):

Country	Min. share capital (Ltd)	Corporate tax (eff.)	New company growth 2025	Bankruptcies (trend)	Access to EU financing
Ireland	€1	12,5–15%	Stable growth	Low	Very high (InvestEU, Digital Europe)
Cyprus	€1	12,5%	≈ +9,8%	Strong decline	Medium (focus on private investments)
Malta	~€1 165	35% (eff. ≈5–10%)	Moderate growth	Decline ≈66%	High (incl. STEP)
Portugal	€1–€5 000 (depending on form)	17–21% (some Madeira incentives)	Moderate growth	Stable	High (Green Deal, innovation)
Hungary	≈ HUF 3 mln	9%	Stable	Low	Medium (industrial projects)
Spain	€1–€3 000	23–25%	Growth in the innovation sector	Moderate growth	High (Innovation Fund, green projects)
Sweden	≈ SEK 25 000	20,6%	Stable	Low	Very high (green, commodity and tech projects)

In COREDO’s practice, Ireland, Cyprus and Malta consistently rank among the top for investment firms, while Sweden and Spain are increasingly chosen for ESG investments in Europe and the green agenda.

Why Ireland often ranks No.1 for “investment suitability 2025” for tech and structurally complex projects:

• Favorable regime for funds and investment companies under MiFID II.
• Effectively “default” access to the US and UK through structures that banks and investors have long understood.
• Active participation in digitization programs and initiatives — the Digital Europe Programme and STEP: for COREDO clients this has already brought grants and favorable lending within AI and fintech projects.

The COREDO team typically prepares a comparative matrix for the client (taxes, licensing, substance, ESG requirements) and, tailored to your model (funds, broker, family office, fintech platform), shows how ROI will change across countries taking into account the new transformational rules of investment suitability 2025.

AML requirements for investment firms in the EU

From 2024–2025 the EU is moving to a new level of harmonized requirements: a Single AML/CFT Regulation, an updated AMLD Directive, and the launch of the supranational regulator AMLA. For an investment company this is not background noise but a direct influence on access to licensing, banks and investors.

Beneficial owners in the EU 2025: control criteria and AMLA

• Controlling influence via trusts and agreements: where a person does not own shares directly but, through a trust or shareholder agreements, effectively determines the company’s course.
• Rights to appoint/remove directors, veto rights over strategic decisions, options and convertible instruments.
• Structures where profit distribution and control diverge.

The launch of the supranational regulator AMLA in the EU means that supervision for large and cross-border investment groups will be coordinated not only at the national level. This increases the importance of early pre-incorporation analysis of beneficial owners, especially if you plan branches/subsidiaries in multiple EU countries.

At COREDO we usually start a project not with the company form, but with a map of beneficial ownership and control:

1. We analyze the ownership structure, trust agreements, and options.
2. We check which persons may be considered UBOs under the substantive control criteria in the EU in 2025.
3. We model how the structure will be perceived by AMLA, national FIUs and banks.
4. We develop internal procedures: internal control of beneficiary reporting, processes for updating data and detecting changes.

For the client this reduces risk: a registrar, bank or regulator will spot “uncoordinated” levels of control in the structure and suspend company registration in the EU or the issuance of a license.

AML compliance for financial licenses and refusal risks

When it comes to financial licenses — crypto, payments, EU forex — AML compliance ceases to be “a field for compromises”. Banking and regulatory cases from 2023–2025 show: the main risk is not even fines, but bank rejection over sources of funds and termination of relationships.

Our experience at COREDO has shown several key lessons:

• When licensing in Cyprus, Malta or Ireland, pre-incorporation analysis of beneficial owners and an embedded KYC/transaction monitoring model significantly increase the chances not only to obtain a license, but also to open an account with a major EU bank.
• Banks expect that an investment company will have not only an AML/KYC policy, but also real tools for digital tagging of transactions and client data: built-in EU sanctions screening, monitoring of the geography of sources of funds, PEP filters.
• Internal reports on beneficiaries and transactions must be ready not only for the regulator but also for the auditor and partner bank.

In one of COREDO’s recent projects for an investment platform with a license for investment services and crypto assets in the EU we built:

• a risk-based client assessment model,
• a country risk matrix (taking into account EU sanctions for investors and export of technologies under Regulation 428/2009),
• escalation processes for compliance officers.

The result — successful licensing and opening of several accounts in the EU, with the bank explicitly noting the maturity of the AML model as a factor offsetting the complex client profile from countries in Asia and the CIS.

EU financing for businesses and ESG in Europe

In 2025 the EU openly says: capital should go where there is a green zero‑carbon agenda, digitalisation and real transformation of supply chains. For an investment company this is a chance: to become an operator or beneficiary of these flows, rather than remain only a “private” player.

EU green agenda: investments and the STEP platform

The EU green agenda, investments and the EU Green Industrial Plan are supported by a range of instruments:

• EU Innovation Fund – grants and financing for projects on decarbonisation, hydrogen, and industrial innovations.
• STEP investment platform – an overlay designed to mobilise financing for strategic technologies (including STEP digital biotechnologies, semiconductors, AI).
• Digital Europe programme – support for digital infrastructure and AI solutions.
• Focus on net‑zero investments, supply chains free from dependencies, and raw material extraction (including projects in Sweden, Finland, Greece, Spain to develop extraction and processing of critical raw materials).

For an investment company this means:

The COREDO team has already supported projects where an investment company in Ireland and a fund in Sweden jointly submitted applications to the Innovation Fund and national “green” programmes. Key insight: the ROI from such investments in the EU looks different – not only due to market returns, but also because of subsidies, grants and concessional loans.

CSRD for investment firms and greenwashing risks

With the introduction of CSRD reporting for investment firms and the development of IFRS S1 and S2 ESG standards, the EU is effectively changing the rules of the game. New contours are emerging for medium and large investment companies, as well as for those working with EU-listed issuers:

• Mandatory ESG reporting covering environmental, social and governance aspects.
• CS3D due diligence directive requirements – checking supply chain risks, working conditions, human rights, environmental footprint across the entire chain.
• Emphasis on digital tagging of ESG data so investors and regulators can compare whether the portfolio actually meets the stated objectives.

At COREDO we recommend to clients:

• Embed ESG analysis into supply chain risk management already at the Due Diligence stage of investment targets.
• Document asset selection and exclusion criteria (screening, negative/exclusion lists) in the investment policy.
• Prepare a CSRD roadmap: which data you will be able to collect now and how you will scale reporting as the company grows.

Risks and benefits of an EU residence permit through investments

Risks and benefits for investors in the EU today are largely determined by the regulatory agenda: from new sanctions, export controls and transparency of capital origin to tightening requirements for beneficiaries. Against this background, competent use of investment programs to obtain a residence permit and thoughtful scaling of an investment model in the EU require not only an understanding of returns, but also a detailed consideration of legal restrictions and compliance.

EU sanctions for investors and export controls

Key points:

• The EU regulation on the control of dual‑use exports (Regulation 428/2009 on exports and its subsequent updates) affects transactions involving technologies, equipment and software related to high technology, defense, and cryptography.
• Violations can lead to criminal liability and sanctions for both the investment company itself and its beneficiaries and management.
• Long‑term consequences of EU sanctions for cross‑border investments — complication of KYC, additional checks on the origin of funds and income sources, denial of access to certain sectors or instruments.

Residence permit through a company and EU citizenship by investment

Many entrepreneurs view an investment company in the EU not only as a business tool, but also as a bridge to a residence permit through the company or later EU citizenship by investment.

The approach here should always be two‑level:

1. Business level – real economic activity, substance, office, employees, taxes.
2. Immigration level – compliance with residence permit/permanent residence programs and their requirements (minimum capital, job creation, participation in share capital).

Examples that the COREDO team regularly works with:

• Countries where participation in the capital of a local company above a certain threshold (for example, 10% of share capital for a residence permit in some regimes) combined with job creation grants the owner and their family the right to a residence permit.
• Jurisdictions where residency through investments in business is combined with a subsequent transition to permanent residence and citizenship; Cyprus, in particular, is known for models where permanent residence can be obtained after 5 years of residence if conditions are met.
• Central European countries where the minimum share capital in the EU for a company is low, but for immigration purposes it is still necessary to demonstrate real economic activity.

In each COREDO case we build the structure based on the objectives: if your priority is a residence permit and family protection, the model will differ from a case where the key goal is exclusively ROI from investments.

How to register an investment company in the EU

1. Define the model and choose a jurisdiction
   • Decide which type of structure you need: a MiFID II investment firm, a fund management company, a holding for direct investments, a fintech platform.
   • Compare viable EU countries for investments by taxes, licensing, ESG requirements, and migration opportunities.
   • Set the target combination: ROI, access to EU programs, residence permit / permanent residence (if relevant).
2. Conduct an AML audit of beneficiaries and investors
   • Document the ownership structure, trusts, options, and other control elements.
   • Check beneficiaries for compliance with material control criteria in the EU, sanctions, and PEP status.
   • Prepare a UBO dossier for the future registrar, bank, regulator – this will reduce the risk of delays and refusals.
3. Start company registration and license preparation
   • Assemble the document package considering the chosen country’s requirements: articles of association, details of directors and shareholders, proof of address and substance.
   • Register the company in the EU in the chosen jurisdiction and simultaneously prepare documentation for the license (business plan, risk policies, AML/KYC, IT controls).
   • Set realistic timelines: from several weeks to months depending on the type of license (investment, payments, crypto, forex).
4. Open accounts and build banking relationships
   • Choose banks and payment institutions that are willing to work with your client profile and country risk.
   • Present a fully developed AML framework and transaction monitoring model – this reduces the bank’s “fear” of a new player.
   • Build a robust banking setup not controlled only on paper – actual dialogue with the bank and transparency are more important than any schemes.
5. Prepare an ESG and CSRD / CS3D compliance strategy
   • Determine which ESG elements are truly relevant for you: climate, labor practices, governance.
   • Implement supply chain due diligence procedures taking into account supply chain risks and future CS3D requirements.
   • Set up a system for collecting and digitally tagging ESG data, even if you do not formally fall under CSRD yet.
6. Apply for EU funding and build a product strategy
   • Identify which programs are relevant: InvestEU, the STEP investment platform, the EU Innovation Fund, national funds under the EU Green Deal and the Digital Europe programme.
   • Prepare project dossiers and partnerships (including with universities and technology companies) – this increases the chances of approval.
   • Integrate ESG metrics and transparent risk management: this directly affects project evaluation and potential ROI.

Key findings and recommendations

• Among the jurisdictions COREDO actively works with, the top‑3 for investment firms in 2025 are as follows:
  • Ireland – optimal for innovative, scalable models with access to global markets and EU programs.
  • Cyprus – a convenient platform for forex, brokerage and multi-asset models with a moderate tax burden and clear regulation.
  • Malta – a strong choice for combining investment licensing, crypto and fintech‑areas with sound AML‑design.
• To minimize risks, I recommend that entrepreneurs:
  • Begin with a detailed AML‑ and sanctions audit of the structure of beneficial owners and investors.
  • Design the business model from the outset taking into account AMLA, the Single AML/CFT Rulebook, CSRD and CS3D.
  • Seek ROI not only in portfolio returns but also in access to EU business financing programs, including InvestEU and STEP.