What is Estonia e-residency? What are the benefits and costs of the e-residency program?
Estonia's e-Residency program is a great way to set up a business in Europe. It provides access to European markets, and it allows you to run your business entirely online from anywhere in the world.
We have prepared a comprehensive article about the Estonia e-residency program for you. With this article, you will be able to find answers to the following questions:
- How can I become a member of the Estonia e-residency?
- What are the costs of Estonia e-residency?
- How can I establish my company with Estonia e-residency?
- Are there any tax benefits with Estonia e-residency?
- Can I live in Estonia with Estonia e-residency?"
What is Estonian E-residency?
Estonia is a small country in Northern Europe with a population of 1.3 million people. It is the first country to offer e-residency, which allows non-citizens to set up and run businesses in Estonia without living there physically. E-residency is not citizenship or permanent residency; it’s simply a digital identity that allows you to open bank accounts and companies remotely, pay taxes online and digitally sign documents. Estonia has been pioneering technology since the 1990s when it made a big leap out of Soviet control by using more advanced systems than its neighboring countries—including digitizing their health records and making them accessible via smartphone apps.
How can I become a member of the Estonia e-residency?
Applying to the Estonian e-Residency program is quite easy. Firstly, you need to apply through the website https://e-resident.gov.ee. During the application process, you need to have your passport with you. Your personal details, passport, and biometric photo will be completed, and then you will be asked why you are applying for the e-Residency program. You should provide details about your business when answering these questions. If you explain your business better, your program application result will be faster. Additionally, there is an application fee that you need to pay, which can be paid instantly with your credit card. Your application will be processed in approximately 3-6 weeks.
What are the costs of Estonia e-residency?
The application fee for Estonian e-Residency is 120€, and the courier fee necessary to deliver your e-Residency kit to you during the application process is 20€. You can pay this fee with your credit card during the application. There is no extra fee such as monthly or annual management fee for your e-Residency card.
How can I establish my company with Estonia e-residency?
Setting up a company with the Estonia e-Residency program is easy and fast. Here are the steps to follow:
- First, you need to receive your e-Residency card. Once you have your e-Residency card, you can start the process.
- Decide on the name and structure of your company. In Estonia, the most common company structure is OÜ, which is equivalent to a limited company.
- We recommend that you use a consulting firm to help you set up your company. There is a risk of making mistakes when dealing with the Chamber of Commerce, and consulting firms can offer support at a low cost. You can click here to find a list of consulting firms.
- Once you have set up your company with the Chamber of Commerce or through a consulting firm, you will receive the necessary company documents by email. You can use these documents to open a bank account and register with payment gateways like Stripe and PayPal.
- To set up a company with Estonia e-Residency, you will need a company bank account. If you are not an EU or UK citizen, it may be difficult to open a company account with banks like Swedbank, LHV, or SEB. If you want to quickly open an account, you can use wamo business bank.
- With Estonia e-Residency, you can manage your company electronically. You can use your e-Residency card to perform important tasks like VAT registration, share transfers, and tax payments.
You can set up your company with the Estonia e-Residency program and choose wamo for your company bank account. You can also use wamo to make tax payments with Estonia e-Residency.
Are there any tax benefits with Estonia e-residency?
Estonia is a European Union country, a global leader in fair taxation, and offers companies the best tax advantages.
In Estonia, tax is not assessed on the profit earned every year but on a monthly basis, and only when profits have been distributed. The corporate tax rate is generally a flat 20%, calculated as 20/80 from taxable net payment. If your annual taxable turnover is below €40.000 VAT registration in Estonia is not obligatory.
Can I live in Estonia with Estonia e-residency?
No, e-residency does not grant you the right to live in Estonia. E-residency is a digital identification program that allows you to establish and manage an Estonian company online from anywhere in the world.
To live in Estonia, you would need to obtain a residence permit or a long-term visa. The requirements for obtaining a residence permit or visa vary depending on your nationality, the purpose of your stay, and the duration of your stay.
If you are interested in moving to Estonia, you should contact the Estonian embassy or consulate in your country to inquire about the specific requirements and procedures for obtaining a residence permit or visa.