Evil
Europe is the same as almost anyplace else - the all have "porn laws" and Europe is maybe not as bad as the US, but they have "matured" their laws over decades. Some stuff is permissable, some not, and this will vary with each country.
Overall, it still remains that less industrialised countries have far fewer restrictions than the US or Europe. You were right in looking at Belize.
Euro corps are ten a penny, you can form one online in the UK for example, by visiting
http://www.jordans.co.uk or a Gibraltar corp... try
http://www.offshoregibraltar.com. These people have been around for ages and are reliable, tho there are plenty more.
As a guide, first you have an issue of where you are actually residing. The laws of that country must be favorable as regards "porn". They may have "porn laws", but what constitues an offense under those laws will vary. Places like the Caribbean and Latin America may have "some" kind of porn laws, but generally, these are not a problem to the normal adult webmaster - the could not care less.
Second is where the corp is. - this can be *anywhere* and not necessarily in the jurisdiction of your place of residence. Similarly, banking - this of often neither in the corp jurisdiction or the place of residence.
The basic rule on this is - obey the laws of the country in which you reside, or choose to reside. They rest, as long as there is no *actual* serious crime involved, does not matter.
Final tip - don't listen to any lawyers or "advisors" who are "onshore" and have, apart from reading some books and looking at websites, no experience of actual offshore. These people are not doing you one favor - just "professionally" ripping you off. There is a *vast* difference in speaking with an *actual* lawyer who conducts business in an offshore jurisdiction.
I'd seriously still be looking at Belize as a base, or other options in the Caribbean and other Latin American countries - it's not just about "offshore" - more quality of life stuff :-)