Introduction: Why Choose Estonia?

Estonia is a digital pioneer—globally recognized for its innovation, transparency, and pro-business environment. With just over 1.3 million people, Estonia has built a reputation as the Silicon Valley of Europe, home to some of the most successful digital startups.

🌍 Success Stories from Estonia:

• Skype – Engineered in Estonia and later acquired by Microsoft.
  
  
• Wise (formerly TransferWise) – A global fintech leader in cross-border payments.
  
  
• Bolt – A major European competitor to Uber in mobility and food delivery.
  
  
• Veriff – An AI-powered identity verification platform used by banks and online platforms worldwide.
  
  
• Pipedrive – A user-friendly CRM used by over 100,000 companies.
  
  

Since launching the e-Residency program in 2014, Estonia has made it possible for entrepreneurs anywhere in the world to establish and run a European business 100% online.

📊 Estonia in Numbers:

• 110,000+ e-Residents from 175+ countries (as of 2025 - source)
  
  
• Over 30,000 companies created by e-Residents
  
  
• Ranked #1 in digital public services in Europe (EU DESI Index)
  
  
• 99% of government services available online
  
  
• Incorporation takes just 1–3 days on average
  
  

What is E-Residency?

Estonia’s e-Residency is a government-issued digital identity that allows non-residents to:

• Start company formation in Estonia remotely
  
  
• Digitally sign contracts and documents
  
  
• Declare taxes and access Estonian business services online
  
  
• Use fintech and banking platforms suited for global businesses
  
  

You do not get Estonian citizenship, tax residency, or the right to live in Estonia—but you can legally operate a fully digital company.

It’s ideal for:

• Freelancers and consultants
  
  
• Digital nomads
  
  
• SaaS founders and startup teams
  
  
• Agencies and remote businesses
  
  

How to Apply?

Applying for e-Residency is fast and fully online:

1. Go to: e-resident.gov.ee
   
   
2. Fill the application form
   
   
   
   • Upload passport scan
     
     
   • Passport-style photo
     
     
   • Motivation statement
     
     
3. Pay the state fee: ~€100–120
   
   
4. Wait for background check: 2–6 weeks
   
   
5. Choose pickup location: Your digital ID card is delivered to an Estonian embassy or consulate
   
   

You will receive:

• A digital ID card
  
  
• A USB card reader
  
  
• Two PIN codes for signing and authentication
  
  

Use this to securely access government services, banking, and register your company online.

Choose Service Providers from e-Residency Marketplace

To register and manage your business remotely, you need a legal address in Estonia and a local contact person (required by Estonian law for foreign owners).

💼 Popular service providers:

• Xolo – Great for freelancers and solo founders
  
  
• Companio – For global startups, with crypto and SaaS-friendly services
  
  
• 1Office – Offers legal, tax, and accounting solutions
  
  
• e-Residency Hub – Full-service business administration
  
  
• LeapIN – Streamlined platform for solopreneurs
  
  

These providers assist with:

• Company registration
  
  
• Accounting and tax compliance
  
  
• Banking setup
  
  
• Legal address and contact person
  
  
• Customer support in English
  
  

You can browse all certified providers at: marketplace.e-resident.gov.ee

Tax Advantages of Estonian Company

Estonia’s corporate tax system is built for simplicity and reinvestment:

💡 Key Benefits:

• 0% Corporate Tax on Retained Profits:
  No corporate income tax is charged unless you pay out profits as dividends.
  
  
• 20% Tax on Distributed Profits Only:
  Tax is only paid when profits are withdrawn—encouraging long-term growth.
  
  
• No Withholding Tax for Non-Residents:
  Estonian companies can distribute dividends tax-free to most foreign shareholders.
  
  
• VAT Registration Threshold:
  Required if annual turnover exceeds €40,000. If you register, you can reclaim VAT on business expenses.
  
  
• Double Taxation Treaties:
  Estonia has agreements with over 60 countries to reduce or eliminate double taxation.
  
  

This setup is ideal for startups and small businesses that want to grow quickly without being burdened by complex or high taxes.

🧮 Accounting & Annual Reporting

Even though Estonia’s system is digital, accurate accounting is legally required for all companies. Remember about choosing the best accounting software f.e SimplBooks.

🗂️ Key Accounting Duties:

• Maintain regular bookkeeping and records
  
  
• Submit annual financial statements to the Estonian Business Register
  
  
• File monthly or quarterly VAT returns (if registered for VAT)
  
  
• Keep all invoices and business documentation
  
  

💼 Who Handles It?

Your chosen service provider typically includes:

• Monthly accounting
  
  
• Annual reporting
  
  
• Tax declarations
  
  
• Communication with the Estonian Tax and Customs Board (EMTA)
  
  

Prices usually range from €30 to €150/month, depending on the complexity of your business and services included.

Accounting services are especially helpful in:

• Managing cross-border revenue
  
  
• Dealing with cryptocurrency or digital assets
  
  
• Filing EU VAT and understanding compliance rules
  
  

Estonia’s digital infrastructure makes accounting seamless, but it’s still a legal obligation—so a good provider is key.

Final Thoughts

Starting an e-Residency company in Estonia gives you access to a stable, digital-first business environment in the heart of the EU. Whether you’re a solo entrepreneur or a scaling startup, Estonia offers a secure, tax-efficient, and globally respected platform to run your business entirely online.

✅ In Summary:

• Apply for e-Residency online
  
  
• Pick up your digital ID card
  
  
• Choose a trusted service provider
  
  
• Register your company online
  
  
• Manage accounting and taxes digitally
  
  
• Grow your global business with EU credibility