Why become an e-resident
2023-08-22 15:29:38 UTC
If you are granted e-Residency, you will receive a government-issued digital ID card that provides access to Estonian e-services.
The majority of e-services currently available to e-residents are business-related as most people choose to apply for e-Residency in order to establish and manage a company online in a transparent business environment - e-Residency works particularly well for entrepreneurs offering location-independent digital services, like freelancers, consultants and digital nomads who:
sell services or digital products online in a broad range of sectors, including IT, marketing, publishing, consulting and more,
want to reduce bureaucracy and paperwork, in order to save time and money,
do not have a fixed location, or
want their business to stay in — or enter — the EU market so they can expand regionally or globally, trade in euros, access financial services or EU funding, or stay within the EU’s legal frameworks.
Benefits of becoming an e-resident
Digitally sign documents
Verify the authenticity of signed documents
Encrypt and send documents securely
Access a wide range of Estonian public and private e-services
Establish an Estonian company online
Manage your Estonian company online from anywhere in the world
Apply for digital business banking and online payment services
Declare Estonian corporate taxes online (if your company is an Estonian tax resident)
Join a community of like-minded people
A list of the e-services most often used by e-residents can be found in our article on how to use your e-Residency digital ID or in our Marketplace.
Still not sure, if you should become an e-resident? Read our blog Is e-Residency for me?
Though we have some great examples on who benefits from e-Residency programme the most at the blog article referred above, you can also read what e-residents say themselves at our blog section e-resident stories.
E-Residency application fee
The state fee must be paid during the online application process and can be done by Visa or MasterCard. For the time being there are no alternative payment options. If you do not own Visa or MasterCard, the application fee can be paid by someone else on your behalf.
The amount of the state fee depends on the pickup location you choose in your application.
As the application fee is a state fee, no invoices will be provided, but you should receive a receipt of the payment from the payment service provider. If you would like to request another receipt or have questions regarding your payment, please contact the Police and Border Guard Board at ppa@politsei.ee
There are no annual or maintenance fees for the e-Residency digital ID card.
The e-Residency digital ID card is valid for 5 years. The state fee for renewal or replacement is the same. Learn how to renew.
Company registration fees
The state fee to register a private limited company (OÜ) online is €265. You can find a more in-depth overview of some of the Estonian state fees e-residents may need to know about here.
In order to register a company in Estonia, you will need a legal address and contact person. Please note that only a licensed representative may be designated as a contact person. Most of the e-residents use a company service provider for this and spend, on average, €200-400 per year. Service fees vary depending on a service package (some may also include bookkeeping and accounting) and which service provider you choose. You can compare service fees in our Marketplace, but also check with the service providers directly.
Though it is not a fee, you should also consider the share capital contribution.
If your company needs to apply for a business license, additional costs may occur.
Company running costs
We strongly recommend using the services of a professional accountant to make sure that your company's bookkeeping and accounting comply with local rules. An accountant can also help you to prepare and submit an annual report, which is mandatory for all Estonian companies (even if they have not been active). Fees for accounting services start from €50 per month.
Other company costs will depend on additional services that your company might need such as legal or tax consulting, business advice, sales and marketing, etc.
Look for a service provider and compare their service fees in our Marketplace.
Estonian corporate tax
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. Learn more about Estonian taxation, and when it applies.
If your annual taxable turnover is below €40,000, VAT registration in Estonia is not obligatory.
Banking fees
Information about the average cost of business banking services used by e-residents can be found in our banking comparison table.
https://www.e-resident.gov.ee/
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