How does e-residency impact taxation

The e-Residency Estonia economy offers one of the most competitive tax brackets within the EU region. It acts as a shield for its rapidly growing economy and gives entrepreneurs an accommodating environment channeling more benefits to the entrepreneurs.

Generally, the Estonian tax laws demand that all companies registered within the Estonian borders be referred to as Estonian tax residents. They are subject to the Estonian tax laws. This law excludes the multinational companies, which in this case, operate under other international treaties.

Tax residencies, in most cases, are determined based on the company's effective management point. Estonia e-Residency companies whose formations were done within its boundaries and whose management is from abroad countries be taxed from their respective countries.


Non-resident companies operating within the Estonia borders are subject to taxation in Estonia as they establish that;

  1. They directly get their primary income from the trading activities within Estonia.

  2. They have established their presence within the county by way of permanent business


Estonia's tax residency enables the entrepreneurs to enjoy lower tax rates as the country charges 20% corporate taxes., a financial consultant and tax expert in the Estonia market, offers its clients the rightful guidance regarding tax legislation and compliance. It also providesclients accounting services on all financial matters.

Limitations of e-Residency

Despite offering lucrative opportunities within the Estonian market, e-Residency usage may be limited to specific aspects such as;

  1. E-Residency does not guarantee CITIZENSHIP.
    The Estonian government only offers the e-residency platform for purposes of convenience in the business. The digital identification cannot be used to acquire benefits accrued to the rights that come with Estonian citizenship.


   2. E-Residency is not a valid TRAVEL DOCUMENT.

        The Estonian digital ID cannot be used either as an official business passport or as an identification document to travel                    anywhere.

   3. E-Residency is not a TAX REPRIEVE PERMIT.

        All e-Resident must pay taxes based on the tax regulation they qualify to. The ID does not act as a shield against citizens                  remitting taxes to their domicile countries.

   4. E-Residency is not a REAL RESIDENCY.
        The e-residency permit does not guarantee any individual the social rights to reside in any country. It only grants the                        economic rights and opportunities to conduct business as an Estonian resident.


The ID allows you to trade within the European Union while having access to the Estonia government services from the governments and bank’s portals online.

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Solidifying Estonia e-Residency Company


Launched by the Estonian government, e-Residency is a pioneering program that has dramatically tapped investors from the European Union market for potential investments into the Estonia market.

As an independent nation, Estonia has progressively grown its digital space to a re-known, innovative, and the most advanced digital community helping freelancers, business owners, and entrepreneurs steadily ascend the market ladders.

The e-Residency Estonia program enables anyone to become an Estonian digital resident, and that earns him or her an identification card and a certificate. The digital ID also allows the holders to access the essential services from the Estonia administration.

What can the e-Residency enable you to do?

Despite the ID granting you the right to do so many things in Estonia, it does not allow physical citizenship rights. It enables the holders to;


  • They are digitally signing of documents.

  • Registration of a company

  • Registration of a bank account

  • Encryption and securing documents

  • Managing companies online

  • Corporate taxes declaration online


The program enables Estonia e-residency company start-ups with valid VAT numbers while managing the business online, signing documents online, and paying taxes online.

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How can one apply for an e-Residency?

Estoniacompanyregistration enables clients to acquire their e-residency identifications remotely while also handling all the other necessary client obligations. The company requires its client to submit the following details for the processing of their e-residency;


  • The applicant’s home country Identification document

  • A passport-photo

  • Reasons for applications

  • A state fee of 120 sterling pounds


From the application page, will first activate the "first residency application" before feeding in all the other essential information, as indicated on the applicant identification document.

The application procedure requires the applicants to fill in the reasons for their application and their point of collection of their ID.

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E-residency and banking

The Estonia banking system is much dynamic such that it accommodates various client needs while also trying to fit on their primary objectives. The Estonia market offers both traditional and digital banking platforms accessible to all its residents.


To open a bank account in Estonia, Traditional bank would demand the physical presence of the applicants who must be Estonian residents. Digital lenders do not require the physical appearance of individual entrepreneurs but equally require that they be residents of Estonia.


Traditional banks do not guarantee non-legal residents of Estonia access to bank accounts, as this is their way of solidifying their anti-money laundering rules and other fraudulent financial activities.

Traditional banks also have in place these practices because of the need to offer their client's insurance on the deposits, which pose a greater risk if the clients are not legal residents.

Despite the digital banks offering a secure transaction platform, they do not limit their client's need for legal identities. They allow e-Residents to access and transact through their online platforms without too many limitations.

However, digital lenders offer no guarantee to the client's deposits. They may not be directly liable in the event of losses arising from loss of funds through acts such as hacking. Digital banking also offers clients’ convenient banking as it offers reasonable and manageable costs.


Why you should consider specializes in company and company activities within and without the Estonian market. It seeks to grow the Estonian market resourcefully while educating clients on the new market trends.

While it helps clients acquire e-Residency identifications, it is also concerned about the purposes. For instance, it empowers the clients on the stages, procedures, and requirements for fulfilling certain market objectives that would help the company strategically fit within the market.

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Rävala puiestee 19, Tallinn, 10143, Estonia

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WhatsApp :    +372 5815 5779

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