e-Residency in Estonia
The world's first digital identity for global entrepreneurs
100,000+ e-Residents
e-Residency is a government-issued digital identity that allows non-Estonians to access Estonian digital services and establish an EU-based company online.[ERIKS §2]
✓ What You GET
- • Digital ID card with chip
- • Ability to digitally sign documents
- • Start and manage EU company online
- • Access Estonian e-services
- • EU banking options
✗ What You DO NOT Get
- • Physical residency rights
- • Right to live in Estonia/EU
- • Citizenship or passport
- • Physical ID for travel
- • Tax residency status
Benefits of e-Residency
🏢 Establish EU Company
Register an OÜ (private limited company) in Estonia and operate within the EU single market. Access to EU customers, suppliers, and payment systems.[ARS §10]
💰 Favorable Tax System
0% corporate tax on reinvested profits. Only pay when distributing dividends. Perfect for growing businesses that reinvest their earnings.
🌐 100% Digital Management
Sign contracts, file taxes, manage banking, and run your business entirely online from anywhere in the world. No paperwork, no physical presence needed.[ERIKS §3]
🏦 EU Banking Access
Open business bank accounts with Estonian fintech companies like Wise, LHV, or traditional banks. SEPA transfers across Europe.
✍️ Digital Signatures
Sign documents legally valid in the EU with your e-Residency digital ID. Equivalent to handwritten signatures under eIDAS regulation.[ERIKS §4]
Who Is e-Residency For?
Ideal For:
- ✓Freelancers wanting EU company structure
- ✓Digital nomads running location-independent businesses
- ✓Startups targeting EU market
- ✓E-commerce sellers in EU
- ✓Software/SaaS companies
- ✓Consultants with international clients
Less Suitable For:
- ⚠Businesses requiring physical presence
- ⚠Those seeking personal tax residence
- ⚠Companies needing local employees (complex)
- ⚠Regulated industries (banking, healthcare)
Application Process
Apply Online
Submit application at eresident.gov.ee. Provide personal information, statement of interest, and copy of passport.
Pay Application Fee
€100-120 depending on pickup location. Non-refundable. Payment by card online.
Background Check
Police and Border Guard Board conducts security check. Takes 3-8 weeks. Track status online.
Collect e-Residency Kit
Pick up your digital ID card and card reader at chosen location (Estonian embassy, consulate, or pickup point).
Start Using
Install software, activate card, and access Estonian e-services. Ready to establish your company!
Starting an Estonian Company
- Service Provider: Most e-residents use a service provider (like Xolo, 1Office, Companio) for legal address and accounting
- Legal Address: Required in Estonia (provided by service provider)
- Contact Person: Estonian resident for official correspondence
Costs Overview
| Item | Cost |
|---|---|
| e-Residency application | €100-120 |
| Company registration (state fee) | €190 |
| Service provider setup | €100-500 |
| Monthly service provider fee | €50-200/mo |
| Annual report filing | €0 (DIY) - €200 |
| Accounting (if transactions) | €50-300/mo |
Typical first-year cost for solo founder: €1,000-2,500 depending on activity level.
Tax Considerations
Important
Estonian Company Taxes
- • 0% on reinvested profits
- • 22/78 (28.21%) on distributed dividends
- • 24% VAT (if over €40,000 turnover)
Your Personal Taxes
You pay personal taxes in your country of tax residence based on dividends received. Many countries have double tax treaties with Estonia.
Related Guides
Sources
- e-Residency Act — e-Residency Act
- Commercial Code (Äriseadustik) — Commercial Code
- Centre of Registers and Information Systems — Centre of Registers
- Police and Border Guard Board — Police and Border Guard Board