Tiny Estonia is leading the way when it comes to borderless businesses. They have what is called an e-residency, which allows people from all over the world to open a business in Estonia.
It’s a logical conclusion for this nation that leads the world in using the internet to make life easy for its citizens. Estonians pay their taxes online in less than 5 minutes. They can vote online and open bank accounts without ever stepping foot in the bank thanks to their use of secure digital signatures.
If you are looking for a way to enter the European market to do business, then take a look at how the e-residency program works to see if it is the right move for you.
Residency without needing to be a resident
With this program, you are able to become a legal business entity without needing to be an expat there. What is an expat? An expat is a high-class way of calling an immigrant.
If you were to move to Estonia, or anywhere outside your country, to open a business, then you would be considered an expat there.
With that out of the way, you never have to leave your country of residence to become an e-resident in Estonia. You don’t even have to leave your bedroom! You can do everything online from the comfort of your home without needing to book a ticket.
What does an e-residency get you?
Before we talk about what you can do with your e-residency, let’s highlight what you can’t do.
It is not an entry into residency to physically live in Estonia or any other Schengen country. Your residency is strictly on paper to be able to do business.
You will still need to pay taxes in Estonia when you take any profits out of your business. Estonia is not a tax haven. They do have many tax treaties with other countries like the US and every European Union member, so you won’t be double taxed. You’ll need to contact a tax consultant that specializes in international taxes to understand how this affects you.
And, lastly, it is not a travel document. It doesn’t even have a picture on it. The only place you can navigate with it is online.
What you do get with your e-residency is access. You will have access to the European marketplace and do business efficiently with European citizens. If you work remotely and do work for European clients predominantly, this is going to make your life much easier.
You also get a 0% corporate tax rate. That isn’t to say that you won’t pay taxes in Estonia. It means that you only pay a flat tax of 20% on any income you take out of your business profits. And paying the taxes takes literally minutes.
Lastly, you get a simple to operate an international company that can handle international payments and all with just a few clicks of the mouse.