UK wont work, want something inside Shzengen.

Would you mind elaborating on that bit? The UK is a pretty good option for freelancers, here is why:

• Everything is in English
• You can setup the company online (£15) in a day with no requirements of UK / EU residency
• Nearly everything can be done online / remotely (YMMV with a business bank account, but I managed to do it when I was in Asia)
• Expect to pay a few hundred pounds per year for an accountant (or you can do it yourself for free) and mail forwarding (you need an address for tax returns and the business bank account)
• Corporate tax rate is 20% (dropping to 18% next year)
• You can effectively pay no other taxes and take out up to £32k/year from the company (although it may go down a bit next year)
• VAT registration is only required once you earn over £82k - but the optional flat-rate-VAT means as a freelancer you can earn an extra 5% for doing nothing

Unless you need to be employed by the company for the visa, you can still have your company in the UK and be a resident and / or tax resident somewhere else - but for simplicity it's probably not worth it (hence my pondering today).

The issue is that you will be taxed where you income resides (where your company is) and also taxed where you are a tax resident (you are automatically a tax resident in most EU countries if you are there for more than 183 days a year). Double-taxation agreements mean you won't be taxed the same amount twice, but will always pay the higher rate of both countries and have to file taxes in both countries. So in that case you might as well keep things simple - register a company in the country you want to live :D

Registering as self-employed is also another option, but at least in the UK it's a lot more tax effective to setup your own company.