European Alternatives to Xero
Looking for a European alternative to Xero? Xero Limited is headquartered in Wellington, New Zealand, and outside the UK and Ireland (which contract with Xero (UK) Limited under English law) its terms are with Xero (NZ) Limited under New Zealand law; for EEA customers the data controller in its privacy notice is Xero (NZ) Limited, with processing possible in Australia, New Zealand and the United States.
Eleven European tools cover small-business bookkeeping, invoicing and VAT: two English-language UK products, an English-language Dutch one, a Spanish suite, a Swiss one and six national tools from the Netherlands, Germany, France, Denmark and Sweden, each built around its own country's tax filings.
How we rank these tools — 4-step process
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1
European ownership, verified
The company is headquartered and incorporated in the EU, EEA or Switzerland, and processes customer data in Europe. A US parent company disqualifies a tool from this page regardless of where its servers are.
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2
Category fit and hands-on review
What the tool actually does, who it suits, and where it falls short — checked against the vendor’s own documentation, changelog and pricing page rather than its marketing copy.
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3
Compliance and pricing check
GDPR posture, hosting location and the prices quoted on this page are verified against the vendor’s public pricing before publication, and re-checked when we revisit the category.
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Position on this page
Placement on this page can be paid, and that can affect which tools appear here and the order they appear in. It never buys a good review: a tool that fails the checks above is not here at any price, and payment does not change the shortcomings we write about. A vendor can ask us to correct a factual error — not to remove a criticism.
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11 European Alternatives to Xero
FreeAgent
Edinburgh accounting for freelancers and small businesses, one plan, 30-day trial, owned by NatWest Group
Moneybird
Dutch invoicing and bookkeeping with an English site, public prices from €3 a month and a 60-day trial
Clear Books
UK accounting with a free MTD plan for sole traders and landlords and a 30-day trial
Holded
Barcelona business suite for invoicing, accounting, CRM and inventory, with list prices from €15 a month
Dinero
Danish accounting with a permanently free Starter plan up to DKK 100,000 turnover and a 30-day Pro trial
Lexware Office
Freiburg cloud accounting, monthly cancellable with hosting included, plans from €7.90 a month
sevDesk
Offenburg accounting with a permanently free plan for three e-invoices a month
Pennylane
Paris accounting and invoicing with published prices from €7 to €79 a month and a 15-day trial
bexio
Swiss small-business software from Rapperswil under Swiss law, with a 30-day free trial
Exact Online
Delft business software for established companies, Dutch law, no public prices
Fortnox
Växjö bookkeeping and invoicing, first six months free for newly started companies
Key takeaways
- Xero Limited is headquartered in Wellington, New Zealand; UK customers contract with Xero (UK) Limited, and the EEA data controller in its privacy notice is Xero (NZ) Limited.
- FreeAgent (Edinburgh, owned by NatWest Group) is the closest in shape for UK users: one plan, bank feeds, invoicing, projects and a 30-day trial.
- Moneybird (Enschede) has an English site, published prices from €3 to €41 a month on annual billing and a 60-day trial of its top plan.
- Clear Books (UK) offers free Making Tax Digital plans for sole traders and landlords, and Dinero (Denmark) and sevDesk (Germany) have permanent free plans.
- Holded (Barcelona) is the widest suite here, with accounting, CRM and inventory, and published list prices of €15 to €199 a month.
- Lexware Office, sevDesk, Pennylane, Dinero, Fortnox and Exact Online are national tools: stronger on one country's rules than Xero, and mostly not in English.
Why people leave Xero
Xero is cloud accounting for small businesses: you connect your bank, match transactions, send invoices, run bills and file VAT or sales tax from one account. Its own About page says it serves 5 million customers in more than 180 countries. In the UK its published plans run from £18 a month (Ignite, with 20 invoices and 10 bills) through Grow £39 and Comprehensive £55 to Ultimate £70, excluding VAT, with 90% off for the first six months.
Xero Limited is headquartered in Wellington, New Zealand. The contract you sign depends on where you live, and it is worth reading precisely. In the UK (and, through its Irish terms, Ireland) it is with Xero (UK) Limited in Milton Keynes under English law.
For New Zealand and the rest of the world it is Xero (NZ) Limited under New Zealand law. In its privacy notice the data controller for EEA customers is Xero (NZ) Limited, with Xero Denmark A/S as its EU representative, and personal data may be processed in Australia, New Zealand and the United States.
None of that is unusual or unlawful, and New Zealand is named in the same notice as a country with adequate protection. It is a reason to look at a supplier that is European all the way up: a European contracting entity, a European parent and a national tax product. Eleven qualify here, and they split into two groups: English-language tools for UK-style bookkeeping, and national tools that are strongest in one country's VAT and filing rules.
- The contract depends on your country, and the EEA ends up in New Zealand Xero's terms list a different entity for each region. UK customers contract with Xero (UK) Limited, and its Irish terms point Irish customers to that same UK edition under English law. Outside those, the entity is Xero (NZ) Limited in Wellington under New Zealand law, and Xero (NZ) Limited is also the EEA data controller in its privacy notice. If you want a supplier whose contract, parent company and data controller all sit in Europe, the tools below fit.
- The dispute clause and the liability cap are worth reading On its Irish terms page, Xero refers disputes to binding arbitration or small claims court after informal resolution, and caps its liability at what you paid for subscriptions in the preceding 12 months, with data loss limited to attempts to recover from backups. Most vendors cap liability, and several tools here do as well (Moneybird caps at annual fees paid). The point is to read the clause for your business, not to treat it as a special flaw.
- Your data may be processed far from you Xero's privacy notice says personal data may be transferred to and processed in Australia, New Zealand and the United States because of where its teams and hosting are, and it does not name a hosting provider. That is lawful with the safeguards it describes. If you handle client data and want to be able to say it stays in your own jurisdiction, the national tools here are easier to describe: most state their company, address and applicable law in plain text.
- Xero is built for a broad audience, European tools for local filing Xero sells the same product across many countries, which is its strength if you trade in several. The European tools are narrower and deeper: Moneybird prepares the Dutch VAT return, Holded implements Spain's Verifactu, sevDesk and Lexware Office produce German e-invoices, and FreeAgent and Clear Books are built for HMRC. Pick by where you file, not by who has the longest feature list.
What you have to replace, not just match
Start from where you file tax and what your accountant uses. A UK business with an accountant who works in Xero will usually want FreeAgent or Clear Books, because both are built for HMRC and Making Tax Digital. A business in the Netherlands, Germany, France, Denmark, Spain or Sweden is better served by the national tool of that country, which is why most of the tools here are tied to one filing system.
Export a full year of data from Xero before you leave, including the chart of accounts, contacts, open invoices and bank reconciliation reports, and keep the old subscription running until your first VAT return from the new tool is filed. Check that the bank feeds, payment providers and apps you rely on connect to the new tool before you commit, because that is where moves usually stall.
The alternatives compared
| Position | Tool | Headquarters | Pricing | Jurisdiction |
|---|---|---|---|---|
| #1 | FreeAgent | Edinburgh, United Kingdom | Landlords £10 / sole traders £19 / partnerships and LLPs £27 / limited companies £33 per month, excl. 20% VAT; free with a qualifying NatWest, RBS, Ulster Bank or Mettle account | United Kingdom (adequacy decision, outside the EEA) |
| #2 | Moneybird | Enschede, Netherlands | Compact €3 / Start €15 / Groei €29 / Compleet €41 per month billed annually (€4 / €18 / €35 / €49 billed monthly); no free plan | EU (Netherlands) |
| #4 | Holded | Barcelona, Spain | Plus €15 / Básico €29 / Estándar €59 / Avanzado €99 / Premium €199 per month excl. VAT | EU (Spain) |
| #5 | Dinero | Copenhagen, Denmark | Starter free (revenue up to DKK 100,000 over 12 months) / Starter+ DKK 245 / Pro DKK 345 / Total DKK 545 per month billed annually, excl. VAT | EU (Denmark) |
| #6 | Lexware Office | Freiburg, Germany | S €7.90 / M €12.90 / L €21.90 / XL €32.90 per month excl. VAT, monthly cancellable; payroll add-on €12.90 | EU (Germany) |
| #7 | sevDesk | Offenburg, Germany | Free plan (3 invoices a month); Rechnung €11.90 / Buchhaltung €25.90 / Buchhaltung Pro €34.90 per month excl. VAT on monthly billing, less on 12- or 24-month terms | EU (Germany) |
| #8 | Pennylane | Paris, France | Free for micro-enterprises without VAT; Starter €7 / Basique €14 / Essentiel €24 per month excl. VAT for independents; company plans priced separately | EU (France) |
| #9 | bexio | Rapperswil, Switzerland | Basic CHF 35/month billed annually (CHF 45 monthly) up to Ultimate CHF 119/month (CHF 129 monthly), excl. VAT | Switzerland (adequacy decision, outside the EEA) |
| #10 | Exact Online | Delft, Netherlands | Boekhouden from €49/month (Essentials), then €99, €159 and €299; scales by module and users | EU (Netherlands) |
| #11 | Fortnox | Vaxjo, Sweden | Packages from SEK 209/month (Mini) to SEK 919 (Stor+) on a 12-month term, plus the mandatory Fortnox Access fee of SEK 29-199/month; single programs such as Bokföring SEK 189/month | EU (Sweden) |
How each alternative compares to Xero
- Which law reaches it. United Kingdom (adequacy decision, outside the EEA). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. Ireland: the security page puts customer data in data centres in Ireland; the sub-processor list also names AWS (US, UK, EU/Ireland), Google Cloud (US, EU) and DigitalOcean (US, EU).
- Source code. Closed source, as Xero is.
- Independently checked. Cyber Essentials Plus.
Best for: UK freelancers, contractors and small businesses who want one plan and no tiers
FreeAgent is provided by FreeAgent Central Limited, a Scottish company (SC316774) at One Edinburgh Quay, owned by NatWest Group Plc according to its terms. If your registered business address is in Scotland, Scots law applies, and for the rest of the UK English law applies, with the courts of the matching jurisdiction. It is registered with the FCA for account information services.
It has a single plan rather than tiers. The pricing page lists sales tax reporting, multi-currency invoicing, receipt scanning, bank feeds, invoicing, expenses, time tracking, projects and a dashboard, with a 30-day trial and a 50% new-customer discount. The page I opened showed dollar amounts, so no price is quoted here.
The terms also give free access to NatWest Group bank customers. That is a real advantage if you already bank there, and a point worth knowing if you do not: the product sits inside a large bank group.
What FreeAgent does better than Xero
- One plan with no tiering, where Xero asks you to pick between four
- UK company under Scots or English law, where Xero's group parent is in New Zealand
- Free for NatWest Group bank customers, according to its terms
- Time tracking and projects are part of the single plan
Where FreeAgent is a step down from Xero
- The price could not be verified, because the page I opened showed dollars
- UK-focused, with nothing like Xero's spread across countries
- Part of a large bank group, so decisions are not made by an independent company
- Xero cites 5 million customers, and FreeAgent publishes no comparable figure that I could check
Standout against Xero. A single-plan product from Edinburgh that includes projects and time tracking, and is free for NatWest customers.
- Which law reaches it. EU (Netherlands). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. Netherlands.
- Source code. Closed source, as Xero is.
- Independently checked. ISO 27001.
Best for: Freelancers and small businesses in the Netherlands who want an English interface
Moneybird B.V. is at Moutlaan 35 in Enschede (KvK 58209344). Its terms say Dutch law applies and disputes go to the competent court in Almelo, and they cap liability at the annual fees paid. Payment services run through Adyen N.V.
The English pricing page lists Compact at €3 a month, Start at €15, Growth at €29 and Complete at €41, with a yearly-billing toggle that saves up to 25%. The limits are plainly stated: 5, 20, 50 and unlimited processed bank transactions, and 1 user on Start and 5 on Growth. There is a 60-day unlimited trial.
Its homepage lists invoices, quotes, timesheets, purchase invoices, bookkeeping, VAT returns and online payments, and says the VAT return is submitted directly to the tax authorities. That is Dutch VAT, so it suits a business that files in the Netherlands.
What Moneybird does better than Xero
- Prices, limits and trial length all in plain text on one page
- A 60-day trial with the top plan, where Xero offers 90% off for six months
- Dutch company under Dutch law with a named court
- VAT returns can be submitted from inside the app
Where Moneybird is a step down from Xero
- Built for Dutch tax, so it is not the tool for a UK or multi-country business
- The Compact plan processes only 5 bank transactions
- Smaller user numbers per plan (1 on Start, 5 on Growth)
- Payment services depend on a partner, Adyen N.V.
Standout against Xero. It states the transaction limit of each plan on its pricing page and gives a 60-day trial of the top plan.
Clear Books
UK bookkeeping with free Making Tax Digital plans
Best for: UK sole traders, landlords and small businesses that want to start free
Clear Books is run by Clear Books Limited, which its footer says is registered in England and Wales. Its homepage says it has been helping UK businesses since 2008, is recognised by HMRC for Making Tax Digital and has a UK-based support team. The terms and privacy pages are rendered in the browser, so I could not check the governing law.
Its pricing page shows free plans for sole traders and for one property, and Sole Trader at £5 a month and Sole Trader Plus at £15, plus VAT, billed monthly. Sole Trader Plus adds MTD VAT reporting, the flat-rate scheme and the domestic reverse charge. The small-business plans were not extractable, so I quote none.
There is a 30-day free trial. It suits a small UK business well, and it will not suit one that trades across several countries.
What Clear Books does better than Xero
- Free plans for sole traders and landlords, where Xero's pricing page shows no permanent free plan
- UK company, HMRC-recognised for MTD
- Entry paid plans from £5 a month plus VAT
- UK-based support team, by its own statement
Where Clear Books is a step down from Xero
- Governing law could not be checked, because the legal pages are rendered in the browser
- The plans for small businesses could not be read, so I cannot compare them to Xero's Grow
- UK only, with no multi-country spread
- Smaller and less known than Xero or FreeAgent, by my reading
Standout against Xero. Free Making Tax Digital plans for sole traders and landlords, and no credit card needed to start.
- Which law reaches it. EU (Spain). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. EU ("in general" per the privacy policy; transfers outside the EEA under SCCs or BCRs possible).
- Source code. Closed source, as Xero is.
- Independently checked. Verifactu.
Best for: Small and mid-sized businesses in Spain that want more than bookkeeping
Holded Technologies SL has its registered address at Passeig Joan de Borbó 101 in Barcelona. Its terms are governed by Spanish law with the courts of Barcelona having exclusive jurisdiction. Its about page says it joined Visma in June 2021, and the footer shows Visma Group.
The pricing page lists Plus at €15 a month, Basic at €29, Standard at €59, Advanced at €99 and Premium at €199, with 50% off for the first three months. Invoices per year are capped at 250, 1,000, 3,000 and 10,000 on the first four plans and unlimited on Premium. Verifactu, Spain's invoicing regime, is on the list, and extra users are €10 a month each.
Some modules are paid add-ons (HR from €1.50 per employee, inventory from €25 a month, point of sale from €25 per store). The site offers English and Spanish.
What Holded does better than Xero
- Accounting, CRM, inventory and projects in one subscription
- Prices, invoice caps and add-on costs published in plain text
- Verifactu support, which matters for Spanish invoicing
- Spanish company under Spanish law, with Barcelona courts
Where Holded is a step down from Xero
- Owned by Visma Group since 2021, so it is not independent
- Invoice caps per year on the first four plans
- Add-ons for HR, inventory and point of sale raise the real price
- Spain-centred, so the compliance benefit does not travel
Standout against Xero. It publishes plan prices, invoice caps and add-on costs, including Spain's Verifactu regime, on one page.
- Which law reaches it. EU (Denmark). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. EU, on Google Cloud (Germany, Netherlands, Finland) for the application and databases, and Microsoft Azure (Netherlands, Sweden, Germany) for databases and AI models.
- Source code. Closed source, as Xero is.
Best for: Small Danish businesses and freelancers who want to start free
Dinero is run by Visma Dinero ApS (CVR 34731543) according to its general terms as shown in search results, and the other Dinero terms I saw reference Danish law and the Copenhagen City Court. I did not open the main terms, so the governing law of the subscription is not confirmed here.
Its pricing page lists a Starter plan at 0 kr a month with a turnover limit of 100,000 kr, and says you can try Dinero Pro for 30 days free. The free plan includes basic accounting functions, daily technical support from 8 to 22 and no credit card requirement.
The site I opened is in Danish. It suits a Danish business well and is not the right choice for a business that files elsewhere.
What Dinero does better than Xero
- A free Starter plan with no credit card, where Xero charges from its first plan
- Danish company, Danish tax support
- Support from 8 to 22 every day, by its own statement
- Unlimited postings and invoices on the free plan, according to the pricing page
Where Dinero is a step down from Xero
- The free plan stops at 100,000 kr of turnover
- Danish-language site
- Part of the Visma group, so it is not independent
- The governing law of the main terms was not confirmed
Standout against Xero. A permanently free Starter plan up to 100,000 kr of turnover, with no credit card.
- Which law reaches it. EU (Germany). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. Germany (data centres in the Frankfurt area, ISO 27001).
- Source code. Closed source, as Xero is.
- Independently checked. GoBD.
Best for: German freelancers and small companies that want clear plan tiers
Lexware Office is published by Haufe-Lexware GmbH & Co. KG, Munzinger Str. 9 in Freiburg. I did not read its terms, so the governing law is not confirmed here.
Its pricing page lists S at €7.90 a month, M at €12.90, L at €21.90 and XL at €32.90, excluding VAT, with half price for the first three months. They are described as cancellable monthly, with hosting, data backup, updates and support included. S covers receipt capture and archive, M adds quotes, e-invoices and reminders, L adds bookkeeping, income-surplus accounting and VAT, and XL adds EU and instalment invoices and an API.
The site is in German. It is built for German tax and is the tool for a German business, not for a UK one.
What Lexware Office does better than Xero
- Four tiers with prices that read like a menu, from €7.90 a month
- Monthly cancellation with hosting and backups included
- German company, German tax features
- API access on the top tier
Where Lexware Office is a step down from Xero
- German-language interface and tax logic
- Governing law was not confirmed
- Bookkeeping and VAT sit in the L tier and above
- Narrower than Xero for multi-country trade
Standout against Xero. Four tiers with hosting, backup and support included in the monthly price, and cancellation each month.
- Which law reaches it. EU (Germany). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. Germany.
- Source code. Closed source, as Xero is.
- Independently checked. GoBD.
Best for: German freelancers who mostly need e-invoices to start with
sevDesk GmbH is at Im Unteren Angel 1 in Offenburg and registered at the Amtsgericht Freiburg (HRB710506). Its terms, as shown in search results, apply German law and name Offenburg as the venue for merchants. There is also an Austrian site run from Vienna.
The pricing page lists a free plan with three invoices or e-invoices a month, ZUGFeRD and XRechnung, several invoice layouts, no time limit and no credit card. A paid Rechnung plan is listed and a discount coupon was applied on the page, so I quote no price for it.
The interface is German. It is a good first step for a business that needs compliant e-invoices, and it is not a Xero replacement for a UK business.
What sevDesk does better than Xero
- A permanently free plan with three e-invoices a month
- ZUGFeRD and XRechnung formats on the free plan
- German company with a public commercial register entry
- Austrian location for DACH customers
Where sevDesk is a step down from Xero
- Three invoices a month on the free plan is little
- Paid prices could not be read without a coupon applied
- German-language interface
- Germany-centred, with no multi-country spread
Standout against Xero. A permanently free plan that includes ZUGFeRD and XRechnung e-invoices.
- Which law reaches it. EU (France). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. EU: AWS in Ireland; the Plateforme Agréée runs on S3NS in France (SecNumCloud).
- Source code. Closed source, as Xero is.
- Independently checked. ISO 27001.
Best for: French businesses that want invoicing and accounting in one place
Pennylane SAS is registered at the RCS Paris under 880 265 921, with its registered office at 2-4 rue Jules Lefebvre in Paris, according to its legal pages as shown in search results. I did not read the terms, so the governing law is not confirmed here.
Its French pricing page lists four plans at €7, €14, €24 and €79 a month excluding VAT, each for one user, with a 15-day free trial. The €7 plan is a Pro account with invoicing in line with e-invoicing rules, and the €79 Premium plan adds the accounting module, approval workflows and dashboards.
The site is in French. It suits a French business and its accountant, and the price per user adds up as a team grows.
What Pennylane does better than Xero
- Plans and prices on one page, in plain text
- French company, French e-invoicing rules
- Accounting module included in the Premium plan
- A 15-day trial without commitment
Where Pennylane is a step down from Xero
- The accounting module costs €79 a month, well above Xero's Ignite
- French-language site
- Prices are per user, so teams cost more
- The governing law was not confirmed
Standout against Xero. It publishes four plans from €7 to €79 a month, with the accounting module in the top one.
- Which law reaches it. Switzerland (adequacy decision, outside the EEA). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. Switzerland (provider servers in Switzerland); some services may run on servers in other countries with adequate data protection; encrypted backups in data centres "in Switzerland and abroad", countries and provider not named.
- Source code. Closed source, as Xero is.
Best for: Swiss small businesses that want accounting, invoicing and payroll under Swiss law
bexio AG is at Alte Jonastrasse 24 in Rapperswil. Its general terms, as shown in search results, apply Swiss law and name the provider's registered office as the exclusive venue. Switzerland is not in the EU or the EEA, so it is in Europe but not in either group.
Its site offers a 30-day free trial with no obligation, and says it has more than 100,000 customers. The English pages cover contact management, the sales process, expense management, accounting, payroll accounting, banking and a mobile app.
I could not retrieve its pricing page, so I quote no price. It is built for Swiss tax and payroll, and it is the least general of the English-language tools here.
What bexio does better than Xero
- Accounting, payroll and sales process in one Swiss product
- Swiss company under Swiss law
- A 30-day trial with no obligation
- English pages, by its own site
Where bexio is a step down from Xero
- Price could not be verified
- Switzerland is outside the EU and the EEA
- Built for Swiss businesses, with little use elsewhere
- A smaller known customer base than Xero's 5 million
Standout against Xero. A broad Swiss suite with payroll and banking, in English, with a 30-day trial.
- Which law reaches it. EU (Netherlands). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. EU, not the Netherlands: AWS in Dublin for Dutch, Belgian and US customers and AWS in Frankfurt for German, French and UK customers; Premium on Microsoft Azure in Ireland and Frankfurt.
- Source code. Closed source, as Xero is.
- Independently checked. ISAE 3402.
Best for: Established Dutch companies that need more than small-business bookkeeping
Exact is run from Molengraaffsingel 33 in Delft, with Exact Group B.V. registered under KvK 27225828 according to search results. Its site terms apply the laws of the Netherlands and a competent court in the Netherlands, and its subscription agreement terms apply Dutch law exclusively.
Its site groups the product under established companies, and I found no public prices, so I quote none. It is built for businesses that outgrew entry-level bookkeeping and that work with an accountant.
The site is available in English. It is a different kind of purchase from Xero Ignite: expect to talk to a partner rather than sign up in an afternoon.
What Exact Online does better than Xero
- Dutch company under Dutch law, with the contracting details in plain text
- Aimed at established companies, where Xero is aimed at small ones
- English-language site
- Subscription terms that state Dutch law exclusively
Where Exact Online is a step down from Xero
- No public prices that I could find
- Heavier than the small-business tools on this page
- A sales process rather than an instant signup
- Little use for a small UK business
Standout against Xero. The contracting details and governing law are stated in plain text, but the price is not.
- Which law reaches it. EU (Sweden). Xero is operated from New Zealand, outside the EU and without an adequacy decision, so transfers rest on contractual safeguards rather than on the data staying inside the EEA.
- Where the data sits. Sweden.
- Source code. Closed source, as Xero is.
- Independently checked. Peppol e-invoicing.
Best for: Newly started Swedish companies
Fortnox AB has organisation number 556469-6291 and its address at Bollgatan 3B in Växjö, according to search results. Its developer agreement is governed by Swedish law. I did not read the customer terms, so I say nothing about those.
Its homepage says that a newly started company gets the first six months in Fortnox free, and lists bookkeeping, invoicing and payroll programs, integrations and a price list. I did not retrieve the plan prices, so I quote none.
The site is in Swedish. It suits a Swedish business and is not a fit for a UK or multi-country one.
What Fortnox does better than Xero
- Six free months for a new company, where Xero gives 90% off for six months
- Bookkeeping, invoicing and payroll programs from one Swedish company
- Swedish company with a registered organisation number
- Integrations listed on its site
Where Fortnox is a step down from Xero
- Prices could not be verified
- Swedish-language site
- Customer terms were not read
- Sweden-only filing logic
Standout against Xero. The first six months are free for a newly started company.
What actually breaks when you switch
The hard part of leaving Xero is the reconciliation history and the apps that connect to it. Export your chart of accounts, contacts, open invoices and bank reconciliation reports, and check that your bank feed, payment provider and payroll connect to the new tool before you commit.
Several tools here are national. Lexware Office, sevDesk, Pennylane, Dinero and Fortnox are strongest in one country, and a business that files in several countries may find itself running two systems. If you trade internationally, Xero's breadth is a real advantage, and you should weigh it honestly.
Prices are introductory for most of these (50% off for three months at Holded and Lexware Office, 90% off for six months at Xero), so write the renewal price down before you decide.
Is there a European tool that works like Xero for a UK business?
FreeAgent and Clear Books are the two UK options. FreeAgent is a single-plan product with bank feeds, invoicing, expenses, projects and time tracking, a 30-day trial, and it is owned by NatWest Group. Clear Books has been serving UK businesses since 2008, is recognised by HMRC and has free plans for Making Tax Digital for sole traders and landlords.
Neither matches Xero's international spread. If you trade in several countries or depend on a specific Xero app, check whether it connects before you move.
Which of these can I try without paying?
Dinero has a Starter plan at 0 kr a month with a turnover limit of DKK 100,000 and no credit card. sevDesk has a permanent free plan with three e-invoices a month. Clear Books has free plans for sole traders and landlords, plus a 30-day trial. Moneybird gives 60 days of its top plan, FreeAgent and bexio give 30 days, and Pennylane 15 days. Fortnox says the first six months are free for a newly started company.
Free plans have limits. Dinero's stops at the turnover cap and sevDesk's at three invoices a month.
Can I use these in English?
FreeAgent and Clear Books are English-only UK products. Moneybird has a full English site, as do bexio (English pages for Switzerland), Holded and Exact. The Lexware Office, sevDesk, Pennylane, Dinero and Fortnox sites that I opened were in German, French, Danish and Swedish, so they suit businesses working in those languages and filing in those countries.
Even where the interface is in English, the tax rules are national. A Dutch VAT return is a Dutch VAT return whatever the language of the menu.
Does the contract really matter for an accounting tool?
More than for most software, because the tool holds your invoices, your customers' details and your tax history. With Xero, a UK customer contracts with a UK company and the dispute clause and liability cap are in plain text; the question is mainly the parent company, the EEA data controller and where data is processed.
With the tools here the contracting entity is in the UK, the EU or Switzerland and, in most cases, states the governing law. It is a point worth weighing, not a decisive one by itself.
Which one to pick
If you are a UK business, FreeAgent is the closest in shape, with a single plan, and Clear Books is the cheaper way in, with free plans for sole traders and landlords. If you file in the Netherlands, Moneybird has an English site, clear prices and a 60-day trial.
Holded is the widest suite if you also want CRM and inventory, and Dinero and sevDesk are the ones to try if you want a free plan in Denmark or Germany. Lexware Office, Pennylane, bexio, Exact Online and Fortnox each fit one national case, and the Exact one is for established companies rather than small ones.
Be realistic about the gap. Xero is broader across countries and has 5 million customers by its own count, and none of these eleven replicates that spread. Switch if you want a European contracting party, parent and data controller, and keep Xero if you trade across several countries or depend on an app that has no equivalent.
Frequently Asked Questions
It depends on where you file tax. For a UK business, FreeAgent is the closest in shape, with Clear Books as the cheaper option with free plans. For a business in the Netherlands, Moneybird has an English site and clear prices. Holded is the broadest suite if you also want CRM and inventory, and the national tools (Lexware Office, sevDesk, Pennylane, Dinero, Fortnox) are strongest in their own country.
No. Xero Limited is headquartered in Wellington, New Zealand. For UK customers the contracting company is Xero (UK) Limited in Milton Keynes, under English law, and its Irish terms point Irish customers to that UK edition. For New Zealand and the rest of the world, it is Xero (NZ) Limited under New Zealand law.
On its UK pricing page the plans are Ignite at £18 a month, Grow at £39, Comprehensive at £55 and Ultimate at £70, excluding VAT, with 90% off for the first six months (£1.80, £3.90, £5.50 and £7). Ignite is limited to 20 invoices and 10 bills; Grow and above have no invoice limit. Prices differ by country.
Its English pricing page lists Compact at €3 a month, Start at €15, Growth at €29 and Complete at €41, with a toggle for yearly billing that saves up to 25%. Compact processes 5 bank transactions, Start 20, Growth 50 and Complete is unlimited. There is a 60-day trial with the Complete plan.
Holded's pricing page lists Plus at €15 a month, Basic at €29, Standard at €59, Advanced at €99 and Premium at €199, with 50% off for the first three months. Invoices per year are capped at 250, 1,000, 3,000 and 10,000 on the first four plans and unlimited on Premium. Extra users are €10 a month each and some modules, such as HR and inventory, are paid add-ons.
Lexware Office lists S at €7.90 a month, M at €12.90, L at €21.90 and XL at €32.90, excluding VAT, with half price for the first three months and monthly cancellation. Pennylane lists plans at €7, €14, €24 and €79 a month excluding VAT per user, with a 15-day free trial, and the €79 plan adds the accounting module.
Yes, within limits. Dinero's Starter plan is free with a turnover cap of DKK 100,000. sevDesk has a free plan for three e-invoices a month. Clear Books has free Making Tax Digital plans for sole traders and landlords. FreeAgent is free for NatWest Group bank customers according to its terms.
FreeAgent and Clear Books are UK companies, and bexio is Swiss, so none of the three is in the EU, but all three are in Europe and contract under their own national law. FreeAgent is a Scottish company owned by NatWest Group. The other eight are in the EU: the Netherlands, Spain, Germany, France, Denmark and Sweden.
Holded Technologies SL is a Barcelona company under Spanish law with Barcelona courts, and its about page says it joined Visma in June 2021; the footer shows Visma Group. Dinero is also run by a Visma company (Visma Dinero ApS), according to its terms as shown in search results. Decisions on those products can be made at group level.
Xero lets you export reports and lists, and most of these tools accept CSV imports of contacts and opening balances, but I did not verify a direct import path for each of them. Plan for a migration of contacts, opening balances and open invoices, and keep Xero running until the first VAT return from the new tool is filed.
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