Success of e-Residence – EUR 17.5 million of tax revenues in 2020
Increase in tax revenues by 1/3
The amount of Estonian tax revenues from the e-Residency system increased by 1/3 compared to 2020 according to estimates of the state agency Enterprise Estonia, which is a record since 2014. Companies founded by natural persons from all over the world who are registered e-residents paid EUR 17.5 million to the budget of the State of Estonia.
Lauri Haav, managing director of the e-Residency program, says the results are delivering more ambitious goals, as well as the fact that existing e-resident companies continue to grow and expand, and e-residents continue to create thousands of new businesses each year. many of which show many international promises.
1/5 of the new businesses were founded by e-Residents, Haav said.
Lauri Haav, who became head of e-Residency last December, said: “In the last three years, almost 20 percent of all private limited companies registered in Estonia were founded by e-residents.”
“In addition, the program has significantly contributed to the expansion and diversification of the Estonian economy,” Haav said, according to a press release from Enterprise Estonia.
E-residents are customers originating in the US, Finland, Sweden, Russia and Ukraine, topping the table, which, as Enterprise Estonia points out, covers a relatively large range of countries in terms of development and wealth.
Andres Sutt – IT and entrepreneurship minister said: “The e-Residency programme has spurred innovative rethinking of traditional business models and provides a flexible platform for a new generation of entrepreneurs”
Most e-Residency companies are small, agile, said Lauri Haav, especially in high-value-added sectors such as IT. The program has attracted enthusiasts of new technologies, security, as well as the Estonian business community, which is already known for its transparency and minimal bureaucracy, says Enterprise Estonia.
E-residence and lockdown
The e-Residency program was launched in December 2014. The purpose of the program is to provide stakeholders with secure access to Estonia’s e-services, as well as enabling digital signature, payment of taxes, establishment and registration of companies.
The e-Residency card is a digital ID card and is no different than that of Estonian citizens. At the moment, the application base is 80,000 e-residents, which gives a total of 16,000 established companies. The coronavirus pandemic made the e-Residence program a perfect fit. In a situation of local restrictions – many Europeans have problems with performing activities at the notary’s or visiting offices. E-residents say goodbye to this problem, because they handle all official matters remotely, including even granting a power of attorney in the e-Notary Service – adds Paweł Krok Eesti Consulting OÜ