E-Residency in Estonia: What Is It and What are the Benefits?

The e-residency programme in Estonia is aimed primarily at non-Estonian business people. It gives the holder special status to set up and run a company based in Estonia. It does not grant Estonian citizenship, but it does offer many benefits. In particular, it allows non-Europeans to establish a business presence in Europe, plus it facilitates more efficient tax planning.

Obtaining an e-residency is easy, and there is no need to visit Estonia. You can apply online, paying the required fee which is currently set at €100. Once your application is processed you will be able to collect your e-residency card at the Estonian consulate in your country of residence. You must collect it in person and show identification, but the process can be completed where you live.

What an E-Residency Allows You to Do

The main reason individuals obtain an Estonian e-residency is to set up a company. You can also do this without visiting the country, although you do need to have an address in Estonia. This is where LumoTrust can help, though.

Your e-residency card also lets you remotely administer the company from anywhere in the world. You can manage bank accounts, send money transfers, and use online payment platforms.

It also gives you access to the Estonian tax system where you can declare taxes. In addition you can handle documents, i.e. digitally sign documents such as contracts. You can also send documents securely using your e-residency card as well as verify the authenticity of documents sent to you.

The Benefits of E-Residency

E-residency offers a range of benefits. These include:

  • Access to European financial markets – you can buy stocks and other commodities in Europe to which you would not otherwise have easy access.
  • Access to European customers – having a company in Europe makes it easier to trade and accept payments from European customers. An Estonian e-residency is a quick and inexpensive way of doing this.
  • Tax efficient – an Estonian e-residency gives you additional tax planning options. For example, you can sell to European customers and you may not have to pay tax on that revenue in your home country, although this depends on your country’s tax code. Our expert team at LumoTrust can give you specific advice on the tax opportunities you have based on your personal circumstances. You also get some of the benefits of the tax system in Estonia when you have an e-residency. This includes the rules regarding delayed payment of corporation tax. In simple terms, you do not pay any corporation tax in Estonia if you don’t distribute capital by, for example, withdrawing money or paying dividends. This can make tax planning much easier.
  • Builds trust with European customers – the laws in all European countries are similar. As a result, customers in Europe have confidence purchasing goods and services from within the EU. Having an Estonian-based company gives your business this trust.
  • Real estate investment – an Estonian e-residency card gives you options for investing in property in Estonia. Your European company could, for example, rent out your Estonian property. This is another business strategy you can implement without ever visiting Estonia, as you can use a management company to look after your real estate assets.
  • To create a holding company – again, helping you with tax planning.

Getting e-residency in Estonia is inexpensive and simple. It comes with a range of features and gives business people, entrepreneurs, and wealthy individuals benefits and options in business, tax, and investments.