Estonian e-residents’ companies deliver €32.5 million in tax revenue in 2021

In 2021, the companies established by the Estonian e-residents delivered €32.5 million in tax revenue, an increase of almost 90% compared with the previous year, marking a new record for the e-residency programme.

According to Andres Sutt, the Estonian minister of entrepreneurship and information technology, the e-residency programme has considerably broadened the scope of the Estonian economy and enriched the local business landscape.

“The share of tax revenue from companies set up by e-residents has grown annually. Taking into consideration that many e-resident companies are still in their early stages, we can expect this trend to continue in the future,” he said.

Lauri Haav, the managing director of the programme, said the applications for e-residency were increasingly motivated by the desire to start a business.

Direct revenue for the budget exceeding €90 million

“When we first launched the programme, only every fifth e-resident was interested in entrepreneurship. Today, aspiring entrepreneurs make up a third of all e-residents,” Haav said, adding that businesses set up by e-residents are also becoming more active.

Lauri Haav, the managing director of the e-residency programme. Photo by Herkki Erich Merila.

In 2021, the majority of tax revenue (€13.4 million or 41% of total tax revenue) came from e-resident companies operating in the field of information and communication technology.

The Estonian e-residency programme was launched in December 2014 with the aim of providing foreign nationals secure access to digital services offered within the Estonian e-governance ecosystem. To date, Estonia has welcomed nearly 90,000 e-residents who have established around 20,000 new companies.

In addition to the indirect economic impact – growth among and investments into Estonian companies offering services to e-residents – the e-residency programme has generated direct revenue for the Estonian state budget in the amount exceeding €90 million, including €75 million in tax revenue.

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