Lexware vs Xero
Last updated October 2026
Looking for a European alternative to Xero? Here's how Lexware compares, on EU hosting, GDPR and what it does.
Our pick for a European buyer: Lexware. We weight data residency, GDPR and EU jurisdiction above everything else — that is the constraint this directory exists to solve.
What it is
German accounting and invoicing with DATEV integration
Cloud accounting software for small businesses and their advisors.
Headquarters
🇩🇪 DE
🇳🇿 NZ · 2006
EU data residency
Yes, for all customers
Not offeredXero has no plans to store data in the EU.
DSGVO / GDPR
Yes
Yes
Certifications
No
ISO/IEC 27001:2022, SOC 2
Price from
€7.90/mo
No
Free plan
No
No
Open Source
No
No
Integrations
Super, HubSpot, Integrately, Pipey
Payroll, Payment gateways, Inventory management, CRM
Where each one wins
Lexware
Xero
Strengths
- +User-friendly interface for non-accountants
- +Strong multi-currency support
- +Real-time collaboration with advisors
Limitations
- −No EU data residency option
- −Limited customization for complex workflows
- −Learning curve for advanced features
Data residency & compliance
Lexware
Xero
EU data residency
Yes, for all customers
Not offeredXero has no plans to store data in the EU.
Transfer mechanism
Not required — data stays in the EU
not established
Certifications
No
ISO/IEC 27001:2022, SOC 2
Pricing
Lexware
- Starter €7.90/month per monthBasic invoicing · Expense tracking · Limited integrations
Pricing may vary based on features and user count. Free trial available.
Xero
No published pricing we could verify.
Pricing details are not provided in the research.
Features
Lexware
- Invoicing & Billing
- Automated invoice creation, Customizable invoice templates, Recurring invoices, Multi-currency support
- Expense Management
- Receipt scanning with OCR, Automated category suggestion, Expense tracking, Digital receipt storage
- Accounting & Reporting
- Double-entry accounting, Financial reports, Balance sheets, Profit & loss statements
- Integrations & Automation
- API access for custom integrations, Automated workflows, Third-party app connections
Xero
- Accounting
- Invoicing, Expense tracking, Bank reconciliation, Financial reporting
- Collaboration
- Advisor access, Real-time collaboration, Role-based permissions, Audit trail
- Integrations
- Payroll add-ons, Payment gateways, Inventory management, CRM connectors
- Compliance
- GDPR compliance tools, Data retention controls, Audit logs
- Security
- Two-factor authentication, Data encryption, Regular security audits