Estonia E-Residency
Guide to Estonia's E-Residency program. Run an EU company remotely without living in Estonia.
Estonia's E-Residency is a unique program that allows anyone in the world to access Estonian digital services and run an EU-based company. It's NOT physical residency—it's a digital identity.
What E-Residency IS
- A government-issued digital ID
- Access to Estonian digital infrastructure
- Ability to register and run an Estonian company
- Ability to use Estonian digital banking and services
What E-Residency is NOT
- ❌ Physical residency in Estonia
- ❌ A visa or right to live in the EU
- ❌ Estonian citizenship
- ❌ A tax residency
This is a crucial distinction. E-Residency does not give you the right to live in Estonia or the EU.
Why Get E-Residency?
Run an EU Company Remotely
- Register an Estonian OÜ (limited company)
- Open Estonian business bank accounts
- Access EU banking and payment infrastructure
- Invoice EU clients in EUR
Digital Infrastructure
Estonia is famous for its digital government. As an e-resident, you can:
- Sign documents digitally
- Access company registration online
- Manage your company remotely from anywhere
Company Structure: OÜ
An Estonian OÜ (Osaühing) is similar to an LLC:
- Limited liability
- Single shareholder allowed
- No minimum capital requirement (€0.01 is fine)
- 0% corporate tax on retained earnings
Tax Treatment
- 0% corporate tax on profits kept in the company
- 20% tax when profits are distributed as dividends
- Dividends taxed to the company, not the shareholder
This "reinvestment-friendly" system is great if you plan to grow your business rather than distribute all profits.
Costs
| Item | Cost |
|---|---|
| E-Residency application | €100-120 |
| Company registration | €190-265 |
| Registered address | €200-400/year |
| Accountant | €100-300/month |
Total first year: approximately €2,000-3,000
The Process
- Apply online at e-resident.gov.ee
- Background check — 3-8 weeks
- Pick up ID card — At an Estonian embassy or designated location
- Register company — Online through service provider
- Open bank account — Through Estonian banks or fintechs
E-Residency vs US LLC
| Feature | E-Residency (Estonian OÜ) | US LLC (Wyoming) |
|---|---|---|
| Tax on retained profits | 0% | 0% (pass-through) |
| Tax on distributions | 20% | 0% (for non-residents) |
| Banking | EU banks, some fintech | US banks (Mercury, Relay) |
| Credibility | EU company | US company |
| Annual costs | Higher (accountant required) | Lower |
| Best for | EU-focused business | Global/US-focused business |
Who Is E-Residency For?
Good fit:
Not ideal for:
Our Recommendation
For most international entrepreneurs, a US LLC is simpler and cheaper than an Estonian OÜ:
- Businesses primarily serving EU clients
- Those wanting EU invoicing infrastructure
- Entrepreneurs who want to reinvest profits (0% retained earnings tax)
- US-focused businesses (US LLC better)
- Those wanting physical residency
- Those who need to distribute profits regularly (20% dividend tax)
- Lower ongoing costs
- No dividend tax for non-residents
- Better banking options (Mercury)
- US credibility
Consider E-Residency if you specifically need:
- EU company structure
- EUR invoicing through EU banks
- To keep all profits in the company (0% retained earnings)
Interested in a US LLC instead? Learn about our formation services →