Estonian e-residency program: the results of six years of work

Estonian e-residency program: the results of six years of work


MarketBusiness

Olga Blinkova | 12/13/2020

Estonian e-residency program: the results of six years of work

In December, Estonia celebrated six years since the beginning of the e-residency program: an electronic residency, when you can create a company and operate as an Estonian company, but physically
being anywhere in the world.

It is noted that over the years the program has allowed Estonia to earn more than 50 million euros; however, its growth and functioning during the pandemic continued.

Currently, there are 75 thousand electronic resident companies in the country, of which 11,500 have joined in the last year. The tax rate in Estonia is 20%.

The advantage of e-residency is that this form of enterprise functioning gives access to consumers in the EU countries. Thus, most of the companies applying the Estonian e-residency physically
are located in Ukraine, Russia and China.

There are a number of difficulties in obtaining electronic residency in Estonia: for example, you need to physically confirm your identity and obtain a special ID card at the Estonian consulate in your home country, and
open an account in an Estonian bank. There are also problems with this – to open an account you need to visit Estonia, which was previously not easy for those who need to obtain a Schengen visa, but now, during
pandemics, and even more so. At the same time, registration of e-resident status takes place remotely (but, I repeat, you need to get it personally at the consulate) and costs about 100 euros.

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