E-Residency in Estonia. A guide to what it is and what it is for.

Estonia, a small country in Northern Europe, is known for its digital innovations. One of these innovations is E-residency, a programme that allows foreign citizens to obtain a digital identity card and open a business in Estonia without leaving their home country. This is very beneficial both for the business people themselves and for the country’s economy. In this article we will look at what E-resident is, what rights and opportunities it provides, as well as a detailed look at the process of obtaining it and the costs associated with it.

What is E-Residency?

E-residency is a programme launched by the Estonian government in 2014. It allows citizens of other countries to obtain an electronic identification card that gives them access to various Estonian government services online. This means that E-residents can manage their business, open bank accounts, file tax returns and much more without leaving their home country.

Advantages of E-resident status

One of the main advantages of E-resident status is the ability to open a company in Estonia without having a physical presence in the country. This makes Estonia an attractive destination for entrepreneurs who want to do business in the European Union. Please note: E-resident status does not grant tax residency, permission to enter the European Union or a residence permit.

The following facilities are available to E-residents:

• Opening a bank account. E-residents can open a bank account in Estonia, which allows them to conduct financial transactions, accept payments and manage their finances.
• Filing tax returns. E-residents can file Estonian tax returns online, which greatly simplifies the process of doing business.
• Electronic signature. E-residents have the opportunity to use an electronic signature. It has the same legal force as a traditional paper signature.
• Company management. E-residents can manage their company in Estonia remotely, no physical presence in the country is required. At the same time, there will be no special restrictions.
• Access to public services. E-residents can access various Estonian government services, such as company registration, filing reports and others.
• Security and privacy. Estonia is known as one of the safest and most confidential countries in the world, which is why it is so attractive for doing business.
• Tax advantages. Estonia offers favourable tax conditions for doing business, including no tax on retained earnings.
• Access to the European market. By becoming an E-resident of Estonia, entrepreneurs are able to do business in the European Union, which opens up new opportunities for growth and development.

Since the launch of the E-resident programme in 2014, its popularity has been steadily growing. According to the Estonian government, there are now more than 80,000 E-resident applicants from over 170 countries. This shows that E-residency is becoming more and more in demand among entrepreneurs and freelancers from all over the world.

How to apply for E-resident status in Estonia?

You will need the following documents during the application process:

• a copy of your passport (or European Union ID card);
• a digital photo with a resolution of more than 1300×1600;
• a reference or file with a business project and CV.

To become an Estonian E-resident, you need to follow a few simple steps:

1. Submit an online application for e-residency. To do this, you need to use the official website of the programme, where you will find the corresponding form. It is filled out in several steps, it is recommended to prepare the documents in advance.
2. Pay the state duty. If you plan to collect your digi-ID at a service centre, you need to pay 100 euros. If you choose the Estonian embassy as the place of collection, you have to pay 120 euros. The choice of the place is made at the first stage.
3. Wait for all checks to be completed. After sending the application, you have to wait for the police and border guard to check your data and make a decision on whether or not to issue E-resident status. The process takes up to 30 days and you can track the progress on the same website.

After that, you will receive a notification and you can collect your resident ID card.

To summarise

Becoming an E-resident gives you a digital identity card, an electronic signature, the ability to open a bank account and register a company in Estonia without leaving your home country. This allows you to manage your business remotely, use state e-services, tax benefits and other advantages.

Q&A

Here you will find answers to the most frequently asked questions.

How long does the process of obtaining E-resident status take?

The process of obtaining E-resident takes on average 4 weeks + 2 weeks for delivery to any Estonian consulate worldwide.

Is it possible to obtain Estonian citizenship through E-residency?

No, E-residency does not entitle one to obtain Estonian citizenship. If a person obtains residence permit, permanent residence permit or Estonian citizenship, he/she automatically loses E-resident status.

Can I travel in Europe with e-residency?

No, E-resident does not entitle you to travel freely within the EU. A visa or a residence permit is required.

Can I give up my E-resident status?

Yes, E- residence can be terminated at any time at the will of the resident.