What is Estonia e-Residency?

A small yet vibrant country on the Baltic sea, Estonia has become a popular destination for business-minded immigrants seeking a stable and innovative environment to grow their companies. And yet, you don’t need to physically relocate to Estonia in order to reap the economic benefits of residency. This is because Estonia is also a pioneer in the concept of “e-Residency,” in which a country offers digital “residency” to eligible applicants via a quick and easy online application process. If you are a citizen of a non-EU, non-Schengen country who is looking to harness the benefits of Estonian residency without having to immigrate to Europe, you may be interested in the Estonia e-Residency program. Read on for guidance about how to become an e-resident and apply for Estonian e-Residency, and for information about Estonia e-Residency taxes and other essential aspects of the program. 

Estonia e-Residency

• Estonia e-Residency is a government program offered by the small, Baltic country of Estonia, which grants a digital form of residency to eligible applicants, allowing them to create and maintain a business with an EU identity from abroad.
• Estonia e-Residency targets innovative entrepreneurs who seek to establish startups and other vibrant businesses not in need of a physical location. 
• Estonian e-Residency is grounded in the revolutionary concept that you don’t need to be physically present in a country in order to access its online services and digital community.

Estonia e-Residency Benefits

• Estonia e residency benefits include the following:
  • Successful applicants for Estonia-e residency will receive a digital identity card, giving them the ability to found and oversee a business from any global location. 
  • With e-Residency, you can digitally sign materials and documents, get paid via PayPal, and oversee your business enterally online, all while gaining entry into the EU business market. 
  • Holders of Estonia e-Residency will experience the stability of a European business environment without having to undergo an arduous, expensive, and time-consuming immigration process. 
  • As an Estonian e-resident, you will become part of a fast-growing community and network of individuals throughout the world; this will be a resource for you and your business as you seek to expend and develop across digital borders. 
  • Zero physical residency, income, or language requirements. With e-Residency, you can live the life of a digital nomad or freelancer, free from the requirement to establish a local director. 

Estonia e-Residency Taxes

• As an Estonian e-resident, you will be subject to the corporate tax rate of 20%.
• This tax is levied monthly (on monthly profits) rather than yearly.  
• Please note that companies which report less than €40,000 in taxable turnover are exempt from the Estonian VAT tax. 
• Finally, as a “digital” Estonian resident (i.e. someone who does not physical reside in Estonia) you will be exempt from paying personal Estonian taxes. 
• For more information on the potential taxes you would pay as an Estonian e-Resident, click here.

Price of Estonia e-Residency

• The basic fee for Estonia e-Residency ranges from €100 to €120, depending on where the application to enter e-Estonia is lodged. 
• Applicants for Estonia e-Residency from within the country (via the Service Point of the PBGB) will pay €100; applicants who apply from outside the country (at an Estonian Embassy abroad) will pay €120. 
• Once you receive your card, if you register a company in the country you will be subject to the state registration fee of €190.
• Additionally, you will be subject to service fees resulting from the yearly requirement to maintain a “contact person” in the country, who is usually “purchased” through services providers who charge around €200-400 per year.
• Please note that many companies also choose to register a “share capital contribution,” which requires a minimum “investment” of €2500 (as per the requirements of the Estonian Commercial Code). 
• Please note that the above prices of the Estonian e-Residency also do not take into account the cost of necessary banking fees that are essentially required to be paid by Estonian E-residents; nor are they inclusive of Estonian taxes, which all companies must pay.  
• Please note that all fees related to E-residency are non-refundable; if your application is denied, you will not get your payment back.  

How to apply for Estonian e-Residency

• In order to enter e-Estonia and become an e-Resident, you must go through the below process to access the online application:
  • You can submit your Estonia visa application online, by filling out the official application form, available here. 
  • Enter the required basic biographical information, including your name, address, and country ID number (if applicable). 
  • Enter information about the business you started/will start; upload your CV, and make sure to put down if you have any business and enterprise bans.  
  • In addition to your biographical and business information, you will have to provide what is called a “motivation statement.” Essentially, you will be asked to describe your primary reason for pursuing Estonian e-Residency. This can be in the form of a small paragraph, which expands on your main motivation for applying. Typical main motivations include “bringing business to Estonia,” “fan of e-Residency,” and “location independent international business.”  
  • You must also indicate on your application where you would like to retrieve your “e-Residency kit” in the event that your online application is accepted. Potential locations include the Estonian Embassy/Consulate in your country. ). Click here for a list of potential kit retrieval points available in your country.
  • Submit/upload all of the Required Documents (see below). Once submitted, your application will be reviewed by the government, and your personal information will be checked against European security databases by the Estonian Police and Border Guard Patrol (PBGB). (Please note that your application will likely be denied in the event that you possesses a significant criminal history). 
  • While you are waiting for your application to be processed, you will likely receive curtsey emails from the PBGB notifying you of the various stages it is entering. 
  • If you pass what is effectively a background check, you will be notified of your acceptance into the Estonia e-Residency program, pending the retrieval of your “e-Residency kit,” which you must retrieve in person from the retrieval point you indicated on your application. You will coordinate via email on an appointment time for the kit retrieval (you cannot simply show up at the Embassy/consulate to pick it up without a prior appointment. 
  • Please be mindful of the requirement that applicants retrieve their kit in person (applicants are not currently allowed to designate someone else to retrieve their personal e-Residency kit). Only the person whose name is on the application for Estonia e-residency may pick up the kit. 
  • When you personally retrieve your kit, you are required to have your biometric information (fingerprints) collected. Additionally, when you retrieve your kit, you will be asked to present the same ID you used to establish your identity on your application. Failure to present the same ID (even if you present another valid ID) will result in you being denied your kit. 
  • Please keep in mind that once your e-Residency kit is sent out to the retrieval point, you have 6 months to pick it up before it expires and is effectively destroyed by the government. If you fail to pick up your kit within the allowed window, you must start your e-Residency application all over again. (Please note that given the current disruption to travel caused by the ongoing coronavirus pandemic, you might be allowed to pick up your kit after the traditional 6-month period without it being destroyed).  

Required documents for Estonia e-Residency

• In order to fill out the above form, you will need access to the following additional documents/materials:
  • Payment (credit card: Mastercard/Visa). 
  • Passport/travel document information. 
  • Photo (requirements: taken against a light, pattern-less background, no earlier than 6 months before submission date, dimensions: 1300×1600, in color, looking directly at camera). 
  • “Motivation” personal statement.

Processing time of Estonia e-Residency

• The general processing time for an Estonia e-Residency application ranges from one week to 30 days. However, your application could take shorter or longer to be reviewed, depending on whether or not you provided complete and correct information. 
• Please note that the above processing times do not take into account the post-acceptance period during which time your e-Residency kit is prepared. This period of e-Residency processing can be anywhere between 2-5 weeks. 

Enter Estonia

• Please keep in mind that Estonia e-Residency is not the same thing as physical Estonian residency, meaning that you will still need a visa to enter the country if you are from a non-Schengen, non-EU country that does not have visa-free access to the Schengen area. 
• If you are looking to visit Estonia, but only need to enter and remain in the country temporarily, you could apply for a Schengen visa for Estonia. 
• A Schengen visa will allow you to spend up to 90 days in Estonia and/or any of the 26-Schengen Member States. For more information about how to apply for a Schengen visa to Estonia, click here.