Estonia is a small European country, but its government is concerned about citizens’ well-being and development. From year to year monetary assets for informational technologies development are appropriated from the budget in Estonia; this fact not only makes citizens’ life easier, but brings substantial contribution to the budget of the country. Skype development is one of outstanding achievements of Estonian programmers; it is successfully used all over the world.
There is a wide range of e-services, employed by the Estonians in their daily life now. Currently Estonian government offers 600 E-services for citizens and 2400 E-services for business.
Estonia is the first country in the world that launched the Electronic Residency Program. With the help of this program citizens of other countries can open their own business in Estonia and run it over the Internet from any spot of the Earth.
What does e-residency status give?
Setting up a company in Estonia, without visiting the country via entrepreneur portal .
Usage of Tax and Customs Board Department for filling of tax returns and communication with the Revenue.
Possibility of Company Existence, having just non-residents, received electronic residency status.
Possibility to use state portal services eesti.ee, namely:
to readdress you email account @eesti.ee to the usual e-mail account in order to receive messages from government facilities;
to load documents, to subscribe them via digital signature and send them to others, using service My documents;
to use other E-services, emerging full blown due to business and personal activities development in Estonia.
How to receive e-residency status in Estonia?
You can apply for reception of e-residency status:
on the web-site of Estonian e-residency status;
within the territory of Estonia — in Service Bureau of Police and Border Guard Board;
outside the territory of Estonia — in Embassies and Consular Agencies of the Republic of Estonia.
1. Taxes in Estonia:
1.1 If your Company does not carry on business within the territory of Estonia (namely: there are no wage-workers, sale/purchase within the territory of Estonia), then accumulated-earnings tax equal to 0%, there are also no salary taxes.
1.2 If any way you are going to connect your business with Estonia, then the following taxes will be obligatory:
- turnover tax (VAT): ordinary rate of the turnover tax in Estonia makes 20% from taxable value of commodity or service; also 9% and 0% tax rates are used. If you do not sell or buy within the territory of Estonia, then you shall not pay VAT in Estonia. Companies, which do not exceed purchase and sale rate with resident companies of Estonia in the amount of 40.000,00 Euro shall not pay VAT.
- income tax (it is incurred from the salary and in case of dividend payment) makes 20%:
- social tax (this tax is incurred with the purpose of revenue generation, required for pensionary and national health insurance. Payments within the framework of labor and work relations, payments to members of legal entities management and supervision organs, payments to natural entities, made by virtue of executory agreements, entered into with the purpose of services rendering and also special privileges and income tax, subject to charges from specific privileges, are imposed by special privileges. In above-mentioned cases, the social tax payer is a person, making a payment, and taxable period equals to one calendar month. As a rule, social tax rate makes 33% from really paid remuneration, i.e. in the case if there are laborers or public servants – at least from monthly rate, determined by the government budget);
- Excise duties: fuel, tobacco products, alcohol, motor vehicle and also packing from alcoholic beverages and cool drinks are imposed by excise duties in Estonia.
- Land Tax (it is a state tax, that is going into the budget of the local government to the full extent at the place of land location. The sum of land tax is calculated by multiplication of assessed taxation land price by land tax rate. The whole land is liable to land tax. The land tax is paid by the land owner and in certain cases also by land user);
2. Convenient tax infrastructure, Internet-banking
3. Possibility of long-term business visa processing
Company Promoters and Members of the Board in Estonia can apply for long-term business visa processing or residence permit. The first residence permit is given for the term of two years and then it is extended for the term of five years.
4. Distance Company Launching or Acquisition
5. Non-residents of Estonia can be owners or Members of the Executive Board