Introduction
Are you searching for the best place to establish your company in Europe? Look no further! We’ve conducted thorough research and are excited to share our findings. In this article, we will explore essential questions: What is E-Residency in Estonia? Who can apply for it? And why is Estonia the ideal option for company incorporation?
Without further ado, let’s delve into it!
Estonia and E-Residency what is it?
Estonia is one of Europe’s most digitally advanced countries, offering convenient e-government services for its residents and those looking to become part of its innovative business ecosystem.
To put it simply, E-Residency in Estonia is a program to obtain a government-issued digital identification card (EU-based digital ID Card) that grants access to a wide range of e-state services and facilitates entry into the dynamic business environment of Estonia.
The E-Residency program allows you to incorporate your EU-based company fully online and manage it from anywhere in the world. By joining Estonia’s E-Residency program, you’ll become part of a thriving startup culture that already includes over 100,000 entrepreneurs from over 170 countries, with 20,000+ companies established in Estonia.
Estonian E-Residency explained
If you want to take advantage of Estonia’s vibrant startup ecosystem or tap into European business opportunities, it’s important to understand the core elements of Estonian E-Residency.
Digital ID Issued by the Estonian Government:
✅ The E-Residency digital ID card provides you access to Estonia’s extensive e-government services, enabling you to run your business remotely. However, it is important to note that this ID cannot be used for travel and does not serve as a physical identification card within the European Union.
✅ The E-Residency card does not grant citizenship, physical residency, or tax residency in Estonia, nor does it allow entry into the European Union or Estonia. If you are outside the EU, you will still need to apply for a visa for travel purposes.
✅ Lastly, while E-Residency offers great flexibility for managing a business, it does not provide automatic access to Estonian banking services.
Benefits of Estonian E-Residency for freelancers, entrepreneurs and digital nomads:
Estonian e-residency offers a unique opportunity for freelancers, entrepreneurs, and digital nomads to establish and manage their businesses remotely. Here are some of the key benefits:
1. Remote Business Setup
📌 Digital ID Card: The e-residency program provides a digital ID card that allows you to access Estonia’s online government services.
📌 Online Company Incorporation: You can establish your company entirely online, without the need for a physical presence in Estonia.
📌 Global Management: Manage your business from anywhere in the world with internet access.
2. Tax Advantages
💸 Favorable Tax Environment: Estonia offers a competitive tax environment with a corporate tax rate of 0% for reinvested profits.
💸 Simplified Tax Administration: Enjoy streamlined tax procedures and reporting.
3. Access to the European Union Market
🌍 EU-Based Company: Your company will be legally established within the European Union, providing access to the vast EU market.
🌍 Simplified Trade: Benefit from the EU’s single market and reduced trade barriers.
4. Access to Estonia’s Digital Infrastructure
⭐ Advanced Technology: Benefit from Estonia’s world-class digital infrastructure and e-government services.
⭐ Innovation Hub: Connect with a thriving startup ecosystem and collaborate with other entrepreneurs.
5. Global Recognition
International Credibility: Establish your business with a European identity and enhance your credibility in the global market.
6. Cost-Effective Solution
👉Affordable Setup: The initial costs of obtaining an e-residency and setting up a company are relatively low.
👉Ongoing costs: Accounting services are relatively cheap too in comparison to the other EU countries, you can agree with the private companies that will help you manage your bookkeeping and help you with the yearly reports.
Who Can Apply for Estonian E-Residency?
According to the official website of the Estonian government, you are more than welcome to apply if:
☑️ You have good intentions for applying for e-Residency in Estonia and understand how you will use it.
☑️ You respect and obey the law stated by the Estonian Republic.
☑️ You do not have residency in Estonia and are a citizen of another country (not Estonia).
In short, if you are a digital entrepreneur, digital nomad, freelancer, or someone else involved in digital operations who wants to establish a European company and enjoy the benefits of remote operations, you are welcome to apply.
How to apply for Estonian E-Residency (Get a Digital ID card)?
All the applications associated with residency in Estonia can be applied online via the Estonian Policeman and Board Guard Board, there you will be asked to prepare and submit the following documents:
✔️ Portfolio of your work or CV
✔️ Documentary appropriate photo of your face
✔️ Your banking card details
✔️ Your passport or EU ID card
✔️ Your motivation for applying
✔️ The type of your business services
We recommend checking the official guidelines provided by EPBGB.
Conclusion: Why Estonian E-Residency is Profitable for Freelancers
Estonian E-Residency offers a highly profitable option for freelancers looking to establish a business within the European Union. The program provides significant advantages:
📌 Low operational costs and affordable setup make it easy to launch and manage a business remotely without the high expenses often associated with traditional company registration.
📌 The favourable tax regime—with 0% corporate tax on reinvested profits—allows freelancers to reinvest earnings into their growth rather than losing a substantial portion to taxes.
📌Access to the EU market opens doors to thousands of potential clients, creating opportunities for expansion and collaboration across the continent.
📌 The streamlined administration through e-government services reduces the time spent on paperwork, leaving freelancers free to focus on growing their businesses.
On top of these benefits, freelancers gain the freedom to manage their companies from anywhere in the world. Whether you’re a digital nomad or simply prefer working remotely, Estonian E-Residency empowers you to run a European company with minimal hassle.
But it gets even better:
Freeberry offers an even more convenient solution for freelancers. Not only do we handle the process of registering your company in Estonia, but we also provide bookkeeping and taxation services, saving you time and effort. Check how we help you open and manage your virtual company here.
Another option of how Freeberry might be useful for you is allowing you to issue company-friendly invoices to clients without going through the complexities of opening and managing a company yourself.
Ready to take the next step? Explore how Freeberry can simplify your business operations and help you thrive as a freelancer with Estonian E-Residency.
Contact us today and let us handle the hard work so you can focus on what you do best!
