OK... Briefly goes like this - tho there is a lot more to consider. The EU or the US is not offshore.
In reply to your points...
1. There is no reason why you should not maintain your Canadian corp - all corps can have uses. Can't see any reason, from what you have said, to close your Canadian corp.
2. The customary locations in the EU are places like Gibraltar, Cyprus or hell, the UK as a non-resident company.
3. Each jurisdiction is different so kinda hard to generalise, but since you are not really moving to an offshore area while you are resident in Canada, there are little complications. You basically (or your Canadian corp could) recieve revenue from your EU corp and taxes would be payable in Canada.
Since the reason for doing this is primarily processing capabilty, highly recommend you seek guidance from an EU processor with the aim of ensuring the formation of your corp is acceptable to the EU processor and that all VISA rulings are covered.
Only my
- everyone is different, but I sure would have a presence in the EU right now for two reasons. First is, it is the only continent other than the US which has several operational TTP's. The second reason is there is more security in place generally, and an extension of that are business models used by a couple of main processors where webmaster funds are covered in the event of problems with a TTP. The US gave in to VISA USA rulings and offered nothing in return to USA clients (apart from charging $700 or so) - this offers no protection of client funds.
Cost... varies depending on the juridiction, how much time you spend with a lawyer, if nominee dirs are needed etc. As a rough guide, that can be anything from around $1500 to $3000'ish depending on the work you need done.
Bottom line... listen hard to an EU processor. Along with that you need to do some reading and get familiar with trading elsewhere - and, if possible, waste some time on a phone chatting with a lawyer in whatever country you want to incorporate (but have your questions worked out in advance).
That said.. it's easier than it sounds. Prob the first step is contact an EU processor and say exactly what your situation is - would recommend you contact Kristi at SegPay on this, since she will prob be able to suggest suitable formation agents/lawyers.