DON’T GET LOST IN TRANSLATION
Cracking new markets means understanding how each jurisdiction operates The UK fintech sector is an international success story, in more ways than one. From 2020 to August 2025, the UK saw more startups achieve unicorn status than Germany, France and the Netherlands (the most successful EU countries) combined, according to Dealroom and The Economist . Fintechs have accounted for the lion’s share, as well as some of its best known, such as Revolut and Monzo. But such success frequently depends on looking beyond Britain’s borders. Revolut has expanded into the US, Australia and Singapore, as well as Europe. Monzo, too, has ‘international ambitions’, as its annual report notes. When the British Virgin Islands group BVI Finance surveyed 451 fintech business leaders in June 2025, it found that 95 per cent of those in the UK said cross-border growth was important or critical to their success. Similarly, a survey by the World Economic Forum and University of Cambridge found that, among European fintechs, seven in 10 had an international presence.
“Most fintech businesses we work with have international ambitions. With global workforces and products, expanding beyond Britain’s borders is always a natural part of their plan,” says Emily Berry, partner and head of fintech at leading professional services firm S&W. But seeing a global vision through to a successful international expansion is not easy. Beyond the different markets and regulatory regimes, fintechs must contend with international taxation, navigating different jurisdictions and demands. In particular, they must consider the tax issues around their sales, people and pricing. SALES TAXES For many fintechs, of course, expanding abroad doesn’t require leaving home. Nor does exposing the business to the complexities and risks of overseas VAT or sales taxes. Simply selling to a buyer overseas may create obligations to the jurisdiction’s tax authorities. “Some countries have minimum turnover thresholds, but others don’t,” says Jade Els, VAT associate director at S&W. “In certain territories, if you make a single sale, you may have an exposure.” A wide range of different VAT and sales tax regimes complicate issues. Even within
the EU, Els points out, there are numerous VAT regimes to consider. Likewise, the different states in the US have their own sales tax provisions. “There’s a bewildering array,” she says. As important are the varied approaches and attitudes to enforcement. Some territories are a lot stricter than others in terms of penalties for failing to abide by the VAT rules, according to Els. These can include even criminal liabilities, she adds. “A big part of what we do is help clients take a pragmatic approach so they can scale quickly and access new markets while taking into account their potential exposures and the risks of failing to register.” INTERNATIONAL WORKFORCES When fintechs do need a local presence, there’s often a sense of urgency to get the right people in the right place, as quickly as possible. But, just as corporate structures are a critical aspect in planning international expansions, employment structures require careful consideration. “You might need boots on the ground, but lack an entity from day one,” explains Natasha Karp, S&W director and a specialist in global mobility and employment tax. “In those cases, businesses may consider contractor
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