Estonia’s e-Residency issues a secure digital ID that lets entrepreneurs register and run an EU company fully online, sign documents electronically and access Estonia’s digital business services.
It’s a powerful tool for cross-border founders — but it isn’t a silver bullet. e-Residency
Recent Statistics for Estonian E‑Residency
- Over 130,800 individuals currently hold e-residency status.
- More than 37,900 companies have been established by e-residents.
- In 2024, e-residents created a record 4,818 new companies — about a 5% increase over the previous year. The Baltic Times
- E-resident companies had a direct economic impact of approx. €31 million in the first half of 2024. ERR.ee
- E-residents are linked to 38% of all startups in Estonia in 2023.
The short verdict
Worth it if you need a trusted EU digital identity and plan to run an EU-facing, remotely managed company.
Not worth it if your business is purely local, you need a work visa, or you expect meaningful tax residency benefits without relocating.
Key pros
- 100% remote company formation & admin — register an Estonian company and sign documents from anywhere. e-Residency
- Reputation & banking access — an EU-registered company often eases opening business accounts and working with EU clients and marketplaces. Payoneer
- Mature ecosystem & stats — the programme has grown rapidly (official dashboard shows 130k+ e-residents and tens of thousands of companies), proving real market traction. e-Residency
Key cons
- Not a visa or automatic tax residency — e-Residency does not grant the right to live or work in Estonia; taxes depend on where you actually live and run the business. If you need to relocate, the Startup Visa is the separate route.
- Compliance & substance scrutiny — banks and tax authorities expect real business substance; remote founders must separate personal and company finances and keep transparent records.
- Costs and local requirements — besides the e-Residency card fee, expect company formation, accounting, legal address/contact person, and banking costs.
Real costs (what to expect in 2025)
- E-Residency application fee: €150 (state fee, card valid 5 years). No recurring e-Residency maintenance fee.
- Company setup & running costs: local legal-address and contact person service, accounting (from ~€100/month for basic bookkeeping), payroll and annual report fees — budget realistically for €1,000+ first-year total depending on activity.
- Tax changes to note (2025): Estonia raised the personal income tax rate to 22% from 1 Jan 2025 — relevant if you take salary or board fees taxed in Estonia. Most e-residents still pay tax where they are tax residents, so check both jurisdictions.
Who should apply
- Digital entrepreneurs, SaaS founders, consultants and freelancers selling to EU customers who want an EU company and trusted e-ID.
- Founders seeking a simple, low-bureaucracy EU base for invoicing, contracts and cross-border sales.
Who probably shouldn’t
- Those who only serve a single local market and don’t need EU presence.
- People who expect e-Residency to be a visa or a way to avoid taxes without real economic substance.
How LKS Consult helps
LKS Consult guides you end-to-end: assess whether e-Residency fits your model, help with the application, register your Estonian company, provide legal-address and contact person services, set up bookkeeping, OSS/VAT, payroll and annual reporting, and advise on tax implications (including cross-border issues and the 2025 tax changes).
We make sure your structure is compliant, credible and bank-ready.
FAQs
Does e-Residency let me live in Estonia?
No — e-Residency is not a residence permit or work visa. For relocation, consider the Estonian Startup Visa.
How much does the e-Residency card cost?
The state fee is €150 (card valid five years). Additional costs come from card pickup, company setup and services.
Will I pay Estonian tax automatically?
Not automatically. Tax residency depends on where you live and where the company’s management is performed. Consult tax experts to avoid double taxation.
How many people use e-Residency?
Official dashboard numbers show over 130,000 e-residents and tens of thousands of companies created via the programme
