e-Residency in Estonia
e-Residency in Estonia - First e-Residency in the world.
First launched in December 2014, E-Residency is a program that allows non-Estonians to have access to various Estonian services. They include taxation, banking, and company information among others. Note that Estonia is the first state to introduce e-residency in the world. This electronic system is designed to enhance identification. With the e-resident smart card, you can easily sign documents, access state websites.
The Basics of e-Residency ?
When a person signs up for the Estonian e-residency, they are issued with a smart ID card by the government. The card is for digital identification as well as authorization. This simply means you can use it to access various digital services, carry out secure transactions, and sign vital documents even if they don’t live in this state.
This legislation was made effective on December 1, 2014. Before this, electronic identification was only available to citizens of Estonian. On the other hand, foreigners living here needed a residence permit. But e-Residency has simplified everything. However, it has to be reissued after 5 years.
Benefits of electronic residency?
Estonia is a state that’s trying creating a borderless digital society. The financial footprint of E-residents is monitored digitally. Besides that, it doesn’t affect income taxation in any way and neither can it help to establish income-tax liability.
– You can use this card to access all e-government services. So, it helps to minimize personal visits to various government agencies.
– It gives you access to employee management, independent business management, and to even obtain a permit.
– It’s the digital signature of the cardholder and it makes approval and registration of documents much easier. Note that a digital signature also makes it easier to sign contacts and do transactions online.
– It simplifies the process of company registration and the management process.
If you are an entrepreneur who is interested in investing in Estonia, then this is the best way to start. Get an e-card. It will make the process of opening a company very easy. Note that if you receive e- residency, you can be a founder of a startup. In addition to that, you can also be a founder of a holding company that’s planning to join the EU market. Overall, the main reason why people look for e-residency is to be able to successfully operate a location-independent online business.
How to obtain e-Residency?
The procedure for e-residency is straightforward. It’s normally issued by Estonia’s Police and Border Guard Board. You first need to send an application with the required documents. After submission, the police department will pick up from there and start by doing a thorough background check. This is important in establishing if you have any offense in Estonia or your country of origin.
Additionally, they will check if you have an existing tie with Estonia. If there are no strong ties that have been established or if you have no plans to establish a tie, then your application will be declined. There should be a strong motivation behind your application for it to be approved. For your application to be considered, you will be requested to provide biometric data at the nearest Estonian office.
If your application is approved, you need to select where you will pick the digital ID from. This is normally one among the 38 Estonian consulates and embassies found around the globe. Alternatively, you can also choose to pick it from Estonia’s Police and Border Guard Station.
What to prepare to start application
– A copy of your government ID or passport.
– Digital passport-style photo.
– Biometric data.
– Visa or MasterCard.
– Motivation letter.
– 102 Euros.
If the police department rejects your application, they will not give you details as to why they refused. However, applicants still have a chance to resubmit their applications. It takes an average of 30 calendar days for a decision to be made in regards to the e-residency application.
Picking Up Your E-Residency Card
– Individually pick it up at the place you selected during the application.
– Bring with you the government-issued ID or passport used during the application process.
– Submit your fingerprints.
E-Residency and Tax Residency
A tax resident will only be charged if they stay here for at least 183 annually. In case you don’t meet this requirement, you will not be charged even if you have the e-resident card. Estonia also takes into account the tax requirements of an individual’s country of residence. Some of the things that they will analyze include bilateral agreements between Estonia and your country of citizenship to determine the country of tax residency. You can contact the necessary personnel for more information regarding the country of tax- residence plus the tax burden.
Opening a Bank Account
Having an e-resident ID makes it easier for you to interact with Estonian banks. However, every bank has its own set of procedures and rules which must be followed when opening a new account. So, each bank makes decisions regarding account opening individually. Your e-residency status does not give you the same rights as an Estonian citizen when it comes to opening a bank account.
Generally, it’s not easy for foreigners with e-residency to open bank accounts in Estonia. However, you can seek the help of Private Financial Services regarding this.
Other Things You Should Know
Simply because you have an Estonian e-resident card doesn’t mean that you can use it as your physical ID card. So, this does not mean that you will be granted tax residency, entry to Estonia, rights vested on residence permits, citizenship, or entry into European Union countries.
We would be glad to assist you during application stage:
– We will perform preliminary assessment and present you all possibilities of e-Residency program.
– We will effectively prepare your documents into a full package.
– We will assist to fill the necessary details and the e-residency application in right manner.
– If required, we accompany you during a visit to Estonian Police and Border Guard Board.
– We will assist you to install required software and will teach you how to use e-Residency card.
The cost of this service is 250 EUR.
NB! For clients who order company formation service in Estonia, e-residency service provided for free!