Many people after BREXIT wonder about their business activities in other EU countries. One such foreign-friendly country is Estonia, which offers everyone to set up a fully online business without leaving home.
In today’s article, Eesti Consulting from Tallinn city will talk about the e-Residency program and tax law in Estonia.
What is an e-Residency program?
E-Residency is a transnational digital identity available to anyone in the world interested in administering a location-independent business online. E-ID solution enables the use of secure and convenient digital services that facilitate credibility and trust online. Please note that e-Residency does not concern citizenship, tax residency, residence or right of entry to Estonia or to the European Union. It can’t be treated like visa or residence permit. The e-Residency card is not a physical identification or a travel document and doesn’t contain a photo.
5 benefits of e-Residency program
1 – Stay with your business in the EU Market – because Estonia is EEA Member
2 – Fully online company registration
3 – Pay and get paid with convenient banking solutions
4 – Be paperless and work with digital secure solutions
5 – Connect with expert service providers
How to apply for an e-Residency card?
If you want to apply for e-Residency card – please prepare basic documents like:
- A copy of your government-issued ID – for example passport copy or identity card
- Motivation letter and information about your business like Linkedin Profile or CV
After thank you will need to submit the application , pay 100-120 EUR state fee and wait for an application review from 3 to 8 weeks. After a positive decision you need to collect your e-Residency card from a pick-up point in your home country. Now you can register your first company in Estonia.
Taxes in Estonia
The tax system in Estonia is not complicated, which is why this country attracts many foreigners. We present below basic tax incentives and tax rates.
The main advantage is no corporate income tax on retained and reinvested profits. It means that you can make profits for several years and avoid paying Corporation Tax (tax rate like “0%”). You will pay Corporation Tax only if you will pay out dividends to the company shareholders.
The corporate tax rate is generally a flat 20%, but if your company pays out regular dividends the reduced rate of 14/86 may apply.
VAT registration is mandatory if you will achieve turnover more than €40,000
Start your first company with a trusted partner – Eesticonsulting.ee managed and owned by EESTI CONSULTING OÜ company registered in Estonia under number 14542319 and FIU license number: FIU000310.
Our firm is a member of the Estonian Chamber of Commerce and Industry and recommended in e-Residency Marketplace.
We will help you with all paperwork and taxes with no hassle.