Estonia is a small country in Northern Europe, and it’s the first country to offer e-residency. E-residents are entitled to use Estonia’s digital services such as online banking, taxation, etc. There are many benefits of being an e-resident that will be explored in detail below!
The post will also explore what other countries might start doing with their digital infrastructure and governance structures in response to Estonia’s innovation. After reading this article, you’ll know everything you need about e-residency with Estonia!
What is e-Residency?
Estonia’s e-Residency program is a government-backed scheme that will set you up with an Estonian digital ID. This program entitles you to all the perks of an Estonian business, including creating an online account, paying taxes, and getting investments.
How Much Does E-Residency Cost?
To set up your e-residency, all you need to pay is €100 (or equivalent in USD or GBP), and you’ll receive a starter kit. The kit includes an ID card, document signing PIN Code card, instructions on opening and operating bank accounts, etc.
E-Residency is very cheap to set up, and you also have a digital income tax return that lets you report your worldwide income and not pay in Estonia. The e-residency starter kit can be picked up from the nearest Estonian embassy or consulate on your travels.
To sum it all up: E-residency costs € 100 / $115 / £78, and it’ll let you get an Estonian digital ID, open bank accounts, set up a business in the EU & much more!
How Can E-Residency Benefit You as an Entrepreneur?
Estonia’s e-Residency program is top-rated with people who are running their businesses online. Having an Estonian business means that you can benefit from the following perks:
- Officially run your business online and bank in Estonia. Owning an Estonian company will enable you to open a bank account in Estonia, which is very easy to do! You’ll also be able to register your company with the Business Registry of Estonia for just €15.
- Have Estonian invoices and invoicing services. You’ll be able to get paid from all over the world, but pay your Estonian taxes on the profits! It’s so much easier if you only need to focus on one country.
- Taxation benefits. Estonia has a 0% corporate income tax rate for e-residents which means you can legally run your business with this tax-free status.
- Invest in Estonian startups through the e-Residency Investment Fund. Estonia’s government has set up an investment fund to help startup companies grow and expand. You’ll be able to benefit from this because, as an e-resident, you’ll be able to invest in the fund!
- Over 100 countries around the world recognize Estonia’s e-Residency program. This means that you don’t have to go through a lengthy process of registering your company locally and waiting for confirmation. As an Estonian registered business, you can set up a website, bank account, etc., online and start trading immediately.
How can E-Residency Benefit You as an Individual?
If you’re not running your own business or don’t want to register a company in Estonia, then e-residency might still be able to benefit you massively! To begin with, Estonian e-ID’s are globally recognized, which means that you can digitally sign documents for free. This includes documents that you might use in your job or everyday life, such as proof of employment and bank statements, etc.
If you want to launch a business or do some freelancing, becoming an e-resident of Estonia might be the right decision for you. E-Residency offers many benefits and opportunities in this small but booming European country with great tech and startup support.
In addition to establishing your residency while retaining your current nationality, one of the most appealing aspects is that it’s possible to conduct all transactions digitally without ever visiting Estonia! It indicates why so many people are considering e-residency in Estonia and deciding whether they want more information about how it would work.