How To Get Estonian e-Residency And Start A Company In 2027

Last updated: November 14, 2026

To start an Estonian company in 2027, apply for e-Residency online, collect your digital ID card, register a private limited company (OÜ) in the e-Business Register, appoint a local contact person with a registered address, and open a business account. Most founders use a service provider to handle the address, contact person and accounting.

e-Residency is a government-issued digital identity, not a visa or tax residency. It lets you sign documents and run an Estonian company online from anywhere.

Step 1: Apply For e-Residency

Apply on the official e-Residency website, upload your passport and photo, explain why you want it, and pay the state fee, currently about €150. The police and border guard run a background check.

Once approved, you collect your ID card in person at a pickup location, such as an Estonian embassy or service point. Allow several weeks for the whole process.

Step 2: Choose A Service Provider

Companies managed from abroad must have an Estonian legal address and a contact person. Providers such as Xolo, 1Office, Unicount and Enty bundle these with accounting. Compare them in our list of the top e-Residency service providers.

Step 3: Register Your OÜ

With your ID card, register the company in the e-Business Register or through your provider. The state fee for an OÜ is about €265, and most providers charge roughly €290 to €315 including it.

You will choose a company name, business activity, share capital, management board member and the contact person.

Step 4: Open A Business Account

Open an account with an Estonian bank or a licensed payment provider. Banks may ask for proof of a real business connection to Estonia, so many e-residents start with an online business account.

Step 5: Understand Tax And Reporting

Estonia does not tax retained profits. When you distribute profits, the company pays 22% of the gross amount, calculated as 22/78 of the net dividend. The planned rise to 24% in 2026 was cancelled.

Standard VAT is 24%, and registration becomes mandatory once taxable turnover exceeds €40,000 a year. Companies file monthly returns when they pay salaries or dividends, plus an annual report.

Common Mistakes To Avoid

Assuming e-Residency Makes You Tax Resident

It does not. Where you live and where the company is managed can create tax obligations in your home country.

Skipping Monthly Filings

Missing declarations leads to fines. Make sure your provider files on time.

Choosing A Provider That Excludes Your Activity

Some providers do not support crypto, ecommerce or licensed businesses.

Frequently Asked Questions

How long does it take to get e-Residency?

The application and background check usually take several weeks, plus time to collect the card.

How much does it cost to start a company in Estonia?

Expect about €150 for e-Residency and about €265 in state fees for the company, or €290 to €315 through a provider.

Does Estonia tax company profits?

Only when they are distributed. Distributed profits are taxed at 22% of the gross amount.

Can I live outside Estonia and run an Estonian company?

Yes, but you need a local contact person and you should check your home country’s tax rules.

Conclusion

Starting an Estonian company is fast and fully online once you have your e-Residency card. The key decisions are your service provider, your bank and how you will handle tax at home. For help, see the top accounting firms in Tallinn and the Estonia hub.