Over the past years, Estonia has invited entrepreneurs from all over the world to become e-residents, which in turn should have allowed them to easily open and conduct business within the country.
The application process for Estonia’s e-residency is quite simple: you send the application online, pay the tax, go through a security check and get an e-resident ID card at the nearest Estonian embassy.
Starting a business in Estonia is also quite simple: as soon as you get Estonian e-residency, you can create an online business.
How’s an e-resident's digital ID different from an Estonian identity card?
An e-resident’s digital identifier is just a chip card, which can only be used in a digital environment to identify a person and to use their digital signature. Since the document is not intended for visual identification or travel, it does not have a photograph of the user.
E-residency is similar to the legal position of a foreigner: the same principles that apply when issuing a visa or residence permit to foreigners apply when issuing a digital identifier.
This may all sound nice, but what about the conditions for obtaining this magic e-residency?
A Estonian digital identifier can be issued to a person who has had contact with the Estonian state or has a reasonable interest in using Estonian online services. The issuance of a digital identifier is determined by the Estonian Police and Border Guard Board. When issuing a digital identifier, the trustworthiness of the e-resident will be checked via all the available sources. Furthermore, the use of the e-resident digital identifier will be monitored by the Police and Border Guard Board, the Security Department and the Estonian Tax and Customs Board.
How to get e-residency in Estonia?
After filling out an online application for a digital identifier to confirm identification, you must contact the service center or the Estonian embassy to receive the document. You will be identified based on your country of origin travel document. In addition, biometric data and fingerprints will be collected.
The whole procedure usually takes at least 10 business days. During this time, you will be given a personal identification code. In the end, you will receive a digital identifier at the service center along with the instructions and a card reader necessary for its use.
What are the perks of an Estonian e-residency for an entrepreneur?
- Create an online company in a day through the company registration portal.
- Manage an online company from anywhere in the world.
- Open a bank account, as well as use Internet banking.
- View tax accounts and send tax returns online through the e-Tax Board.
- Access all Estonian bank accounts with one smart card.
- Use a digital signature on any official Estonian document.
- Use a smart card to encrypt emails and files for free.
- Use public services through the state portal eesti.ee.
When is your door to e-residence in Estonia closed?
If you:
- do not have a valid citizenship document;
- did not pass security checks conducted by the Estonian authorities;
- have no connections with Estonia or a legitimate interest in using Estonian online services.
Keep in mind that Estonian e-residency does not directly affect your tax residency. The fact that you are an Estonian e-resident does not mean that you automatically become a tax resident of Estonia.
