What is e-Residency?

Estonia is the first country to offer e-Residency to people living and working anywhere in the world. E-Residency is a secure and convenient way to run a business regardless of location. E-residents are given a digital identity issued by a government agency, which allows them to access Estonian e-services and operate in Estonia's transparent business environment anywhere in the world.

• E-Residency is valuable to many people living and working around the world, but it is not a magic solution that will help everyone. Some people will benefit more from e-Residency than others - it all depends on circumstances and business models.

• E-Residency does not cancel international obligations, such as tax obligations. E-residents and their companies must pay taxes in accordance with international and national legislation. It is important to create commercial substance for the company in Estonia, for example, renting an office, recruiting employees, spending time here or registering property.

• E-Residency is not a way to circumvent the income tax system applied to foreign companies to create a shell company. In fact, the Estonian business environment is one of the most trusted and transparent in the world thanks to various measures – for example, basic data of Estonian companies, such as their owners and annual reports, are public and confirmed by digital signature, while all companies managed by e-residents have a registered address and authorized contact person.

• A company created through e-Residency is not a virtual company. It is an Estonian and EU company with equal legal basis. All EU countries allow non-residents to manage companies from abroad, but Estonia offers this in a much more convenient and secure way through e-Residency, because we are already a digital society where companies are managed online.

• An e-resident company does not need to have a traditional Estonian bank account, which can be difficult if the e-resident company does not have operations in Estonia. E-residents can use business accounts with fintech companies or other banks located in the European Economic Area. The account is not guaranteed for e-residents, as banks and fintech companies set their own rules and criteria for accepting clients.

• E-Residency may not be a useful solution for people living in countries known as high-risk areas for financial transactions, as access to business banking or payment solutions may be impossible for them.

• More information about e-Residency: e-resident.gov.ee.

Benefits of e-Residency for Estonia

• Estonia's influence as an innovative digital nation is increasing

• The Estonian business environment is diversifying and strengthening

• Estonian state tax revenue is growing

E-Residency allows global businesses and talented people to come to Estonia, making our business environment more active. They create more jobs and enable local companies to increase their international competitiveness. Thanks to e-Residents, Estonian companies here grow.

What can a foreigner do with an e-resident digital ID?

The e-resident digital ID is an opportunity for foreign citizens to securely access Estonian state e-services. A person who has an e-resident digital ID card can participate in both private and public law activities, for which an Estonian identity card is required. The e-resident digital ID allows you to perform operations only through e-services.

E-residents can establish companies in Estonia and easily manage them, even if they are not in Estonia.

Entrepreneurs from countries outside the European Union can also establish companies in Estonia and organize their activities within the European Union.

E-residents can use Estonian online banks, file tax returns, and use digital signature options.

It should be noted that e-Residency is not equivalent to the right to reside in Estonia, to enter Estonia, and does not grant tax residency in Estonia. An e-resident's digital ID cannot be used as a document proving the identity of a natural person.

Who can apply for an e-resident digital ID?

Persons who have a legitimate interest in using Estonian e-services may obtain an e-resident digital ID if:

• they are foreigners without a residence permit and right of residence in Estonia;

• they are not residing in Estonia as an alien under the International Military Cooperation Act and do not have a residence permit card or a valid identity card issued by the Police and Border Guard Board.

An Estonian citizen abroad who has the right to obtain an Estonian identity document cannot obtain an e-resident digital ID.

The e-resident digital ID, issued since May 1, 2018, is valid for 5 years.

How to start a company electronically?

An e-resident has the same opportunity to establish a company in Estonia electronically as Estonian citizens. This can be done in the e-business register.

E-Residency and taxes

Estonia has signed agreements with dozens of other countries to avoid double taxation. It should be noted that e-Residency in Estonia is not an automatic exemption from taxation by other countries.

In terms of Estonian tax law, an e-resident is actually a non-resident who is taxed in Estonia on income earned in Estonia. Since an e-resident company can also be managed from foreign countries, the company may also be liable to tax in another country.

Virtual marketplace

The virtual marketplace is designed to support the export of Estonian companies. The virtual marketplace team is working to make life easier for e-residents. They check the reliability of companies on the marketplace. Therefore, cooperating with companies that are not on the marketplace is also riskier.

E-Residency created a viable customer base for companies on the virtual marketplace.

Estonian companies that want to help e-residents develop their businesses are welcome to join the virtual marketplace.

Reasons to join the e-resident virtual marketplace

The e-resident community has grown rapidly, and this in turn has increased the need for a variety of services. This offers Estonian companies a variety of business opportunities. E-residents want to buy in raamatupidamist, legal advice, address service, banking services and much more.

• A great opportunity to expand your company's competitiveness internationally

• Opportunity to contribute to the development of your company and increase your company's turnover

• You can contribute to developing a world-class business services sector in Estonia

• Creating innovative products in the business services sector

• The path to new customer segments

• Expanding your business's global networkHow to join the marketplace?

Joining the virtual marketplace is easy. You just need to fill out a registration form and submit a few recommendations from previous clients who are e-residents, and the recommendations must also be digitally signed.

Then, a thorough background check is conducted on the company to ensure that it is a good fit for the marketplace.

We assist our clients in applying for e-Residency and completing documents.

As of December 1, 2014, a person who is not an Estonian citizen or a foreigner living in Estonia on the basis of a residence permit may be issued a digital ID. E-Residency can be applied for by all foreigners who wish to use Estonian e-services, both private individuals and companies. E-Residency gives foreigners living in foreign countries similar opportunities to Estonian residents to operate in the Estonian e-environment. For example, a person from outside the European Union can create a base center for their business in the European Union - they can establish a company in Estonia and actively participate in the management, accounting, sales, development, and profit growth of the OÜ.

Applicants for e-Residency must be aware that this is a benefit, not a right. A digital identity card is issued to a person who has a connection with the Estonian state or a justified interest in using the e-services of the Estonian state. A digital identity card is issued only if the person is trustworthy and there is reason to believe that he or she is using the digital identity card in good faith. If the Police and Border Guard Board suspects that a person may misuse the digital identity card, it has the right to refuse to issue it. In addition to refusing to issue it, the Police and Border Guard Board may suspend or terminate the validity of the digital identity card in the event of the slightest suspicion. E-Residency does not give a foreigner rights that only Estonian citizens have. or permanent residents (e.g. vote in Riigikogu and local government elections, belong to political parties).

Documents required to apply for a Digital ID

• Application form

• Foreign identity document

• One color photo measuring 40×50 mm

• A free-form written explanation of the intention to use the digital identity card and the circumstances of its use

• Document proving payment of state fee

The application will be reviewed within 3-8 weeks and a background check will be conducted on the person during this time.

If the application is approved, you can pick up your digital ID card at the Police and Border Guard Board service office in Estonia or at Estonian embassies, consular missions or other service provider's issuing point (service fees may apply).

When you pick up your passport, you will need to bring your national ID card, which you also submitted when applying. You will also need to provide your fingerprints.