Becoming an e-resident means that we are opening our digital country to you. We do ask you to help us retain the digital environment as trusted and transparent as it has been.
First the basics
1. E-Residency is a digital identity that Estonia has created as a benefit for foreigners who wish to do business in Estonia or have another justified interest in using the e-services of Estonia.
2. E-Residency does not interfere with your citizenship or physical residency. In fact, e-Residency is a digital status granted on the basis of your existing citizenship. As an e-resident, you will receive an Estonian personal identification code.
3. E-Residency status does not confer tax residency. Your personal tax residency will remain where it had been before you became an e-resident.
4. An Estonian company established by an e-resident is an Estonian tax resident. In case the business activities of this company are carried out elsewhere or the company is managed from outside of Estonia, the income received in a foreign state will be taxed in this foreign state and Estonia will ensure the avoidance of double taxation.
5. E-Residency does not enable you to travel or live in Estonia or Europe – for this, you still need to follow the migration requirements in place.
Personal responsibilities
1. Keep your e-Residency digital ID card and PIN codes safe and never hand the card or your PIN codes to anyone else.
2. Notify the Estonian Police and Border Guard Board if the card is lost or stolen.
3. Inform the Estonian Police and Border Guard Board if your contact details have changed.
4. You will need to apply for a new e-resident’s digi-ID within 30 days when your name changes.
5. Always use the latest version of the ID software.
6. Ensure that your digital ID card is up-to-date. It is recommended to apply for a new card at least 3 months before the expiry.
7. Familiarise yourself with the local legislation regulating your activities and obey the law. Our Knowledge Base and State portal are good resources to help you out.
Activity-based responsibilities
Depending on your activities, e.g. Registering a company, you will have to follow additional requirements. Please note that this is not a full list, but an indicator of what you should consider.
It is very important to give the Estonian Tax and Customs Board the contact details, in order for the tax administration to be able to send e-resident important information. The same is expected from the Company Registration Portal, your business service provider and your business banking service provider.
To ensure that you will not experience any difficulties, make sure, your e-Residency digital ID card remains active until you have obligations or ties to Estonia (for example, if you have registered a company but at some point wish to cease business operations, you will need access to e-services to do this smoothly). You can also look into Smart-ID as an added solution.
Estonian Tax and Customs Board (EMTA) and Company Registration Portal requirements
1. Appoint a contact person for your company. You are also obliged to fill in the address of the location of the management board (outside of Estonia) in the Commercial Register.
2. Make your share capital contribution (minimum €0.01 per shareholder for an OÜ).
3. Obtain a business licence (for certain business activities).
4. Keep the company contact information, including the address of the location of the management board (outside of Estonia), up to date at the Company Registration Portal and e-Tax systems.
5. Ensure that taxes are declared and paid to the country where they are owed.
6. Make sure that the company follows the local rules in the countries where it operates.
7. Maintain proper accounting and bookkeeping procedures.
8. Submit annual reports (due 6 months after year-end). Read more about submitting the annual report at our blog.
9. In Estonia, companies are obligated to state the data of beneficial owners publicly.
10. If you have staff in Estonia, register them for tax purposes
According to Estonian domestic law, an administrative act is regarded to be submitted, when it is made available on the e-Tax/e-Customs.
You will see that other authorities also practice making information available through e-services, which is more effective and faster both for the authority and for the user.
If you are daunted by these obligations, please consult with an e-residency business service provider.
Statistics Estonia
Statistics Estonia may request Estonian companies to submit data to them. Fulfilling this request is obligatory.
Statistics Estonia will notify you about this obligation through your contact person. You can also check if you need to submit any data, online. If you have joined eSTAT, notifications will be sent to the persons who are registered as the main user or CEO of the company.
Additional reading
To learn more about what duties come along with managing a business in Estonia, visit our blog, where we have longer articles that help you understand your legal duties as an e-resident company owner Part 1 and Part 2.