Estonia lets people who have never set foot in the country register and run an Estonian company entirely online. 142,000+ people have taken it up, and they have founded 43,000+ companies between them.
A digital identity that runs an EU company
e-Residency is a state-issued digital ID card that lets you authenticate to Estonian e-services and apply an EU-recognised digital signature. With it you can found an Estonian company, run it, file its returns and sign its contracts from anywhere.
It costs €150, the card lasts 5 years, and registering a company on top costs €265. It gives you no right to enter, live or work in Estonia — see why that distinction matters.
Table of Contents
The Programme in Numbers
2025 was the programme's strongest year in six: 13,828 new e-residents, up 20%, and 5,556 new companies, up 15%. Estonia collected €124.9 million in tax and fees from e-resident businesses that year, an 87% increase.
How to Apply
Apply online
Identity documents, a photograph, and a statement of why you want it. The state fee is payable at this point and is not refunded if the application is declined.Background check
The Police and Border Guard Board runs it. Applications are refused for people who cannot be identified, or where there is reason to doubt the stated purpose.Collect the card in person
You choose the collection point when applying. There are 50+ worldwide, including Estonian embassies. Inside Estonia: Tallinn, Tartu, Narva and Pärnu. Changing the pickup location later costs €10.
You must collect the card in person, and it is the only step you cannot do remotely — biometrics have to be taken and the card handed over physically.
What It Costs
| Item | Cost | Note |
|---|---|---|
| e-Residency application | €150 | Same fee on renewal. Non-refundable if declined. |
| From 1 January 2027 | €165 | Flat rate, application and renewal alike |
| Registering an OÜ, electronically | €265 | The only fee the register publishes for founding a company |
| Minimum share capital | €0.01 | Not €2,500 — see below |
| Replacement PIN codes | €20 |
There is no €2,500 minimum share capital
It was abolished on 1 February 2023. The minimum is now the nominal value of one share, €0.01. The €2,500 figure survives in the law only as a threshold below which shareholders stay personally liable for the unpaid portion — which is a liability rule, not a capital requirement. A great deal of published guidance still gets this wrong.
The Company, and the 0% That Isn't Magic
Estonia taxes corporate profit only on distribution. Retained and reinvested earnings are taxed at 0%; distributions at 22%, expressed in the law as 22/78 of the net amount.
That is a genuine cash-flow advantage for a company reinvesting its profits. It is not a way to avoid personal tax. You are taxed where you live, and if you manage the company from your own country, that country may treat it as tax-resident there. The separate page on this goes into why it is the most expensive misunderstanding in the programme.
One rate that changed, and one that did not
The reduced 14/86 rate on regular distributions, with 7% withholding on dividends to natural persons, was abolished on 1 January 2025. It is no longer available on any distribution.
Personal income tax is 22%, not 24%. The rise to 24% was legislated in June 2025 for 1 January 2026, then repealed that December before it took effect — so a 24% figure describes a rate that never applied.
Banking, Which Is the Hard Part
Registering the company is straightforward. Getting it a bank account is not, and the programme is explicit that e-Residency “does not guarantee access to banking services.”
Estonian banks apply their own anti-money-laundering assessments, and generally want to see a genuine connection to Estonia — customers here, staff here, or a director who visits. A company whose only Estonian feature is its registration often does not clear that bar.
Most e-residents therefore bank with EU fintechs rather than Estonian banks. That works, and for a service business it works well. It is simply not what people picture when they read "EU company with an EU bank account", and it is worth knowing before you pay the fee.
Frequently Asked Questions
What is e-Residency, in one sentence?
A state-issued digital identity that lets a non-resident register and run an Estonian company online, sign documents with an EU-recognised digital signature, and use Estonian e-services.
Does it let me live in Estonia?
No. It confers no citizenship, tax residency, physical residency or right of entry. Living here requires a residence permit, applied for separately.
What does it cost in total to get a company running?
€150 for e-Residency plus €265 to register the company electronically, which is the only route the register prices — about €415 before any accounting or service-provider fees.
Do I have to go to Estonia?
Only if you choose an Estonian collection point. The card must be collected in person, but there are 50+ locations worldwide including Estonian embassies.
How long is the card valid?
5 years. Renewal costs the same as the original application — €150 in 2026, rising to €165 from 1 January 2027.
Is the 0% corporate tax real?
Yes, on retained earnings — Estonia genuinely does not tax undistributed profit. Distributions are taxed at 22/78. What it does not do is change where you personally are taxed.
Related Guides
Disclaimer. General guidance, not legal or tax advice. Fees and rules change, and how an Estonian company is treated in your own country depends on rules this page cannot see. Confirm with the programme and a qualified adviser before acting.