In the first half of 2024, the Estonian e-residency programme directly impacted the country’s economy by €31 million; additionally, e-residents contributed over €11 million to Estonia’s economy in 2023 through local business services.
In the first half of the year, 76% of taxes paid by Estonian companies founded by e-residents, amounting to €22 million, were labor taxes. The remaining 24%, or €7 million, came from income taxes on special cases, primarily dividends. Additionally, €2 million in state fees paid by e-residents further enhanced the programme’s economic impact.
Between January and June 2024, over 6,000 foreign nationals received an e-resident digital ID. The approval rate for e-residency applications was 93%, with 6,482 applications received. During this period, e-residents established 2,450 new Estonian companies. The most active participants were citizens of Spain, Ukraine, and Germany, who submitted the highest number of applications and founded the most new companies.
Liina Vahtras, the managing director of e-residency, noted that while interest in establishing companies in Estonia remains strong, the growth rate is showing signs of slowing.
“The number of new e-residency applications was 7% higher compared to the same period last year, and the creation of new companies also increased by 7%. These results have exceeded our expectations despite the economic downturn,” she said in a statement.
The direct economic impact in 2023 was €67 million
A recent study reveals that Estonian companies on the e-residency marketplace generated over €11.4 million in revenue last year from serving e-residents alone.
“This value comes from a growing number of service providers for whom serving e-residents accounts for 50-100% of their business. The e-residency marketplace has allowed Estonian companies to evolve with their international e-resident clients. As a result, this sector is expanding its global reach, thanks to the valuable and expanding customer base provided by e-residents,” Vahtras said.
In 2023, the direct economic revenue from the e-residency programme to the state budget was €67.4 million. The economic impact measurement model of the programme considers the labour taxes and special-case (primarily dividend) income taxes paid by e-resident companies registered in Estonia.
In 2023, the direct economic revenue from the e-residency programme to the state budget was €67.4 million. This figure includes labour taxes and special-case income taxes (primarily dividends) paid by e-resident companies registered in Estonia.
Over a third of Estonian startups connected to e-residents
To date, Estonian e-resident status has been granted to 117,000 people from 185 nationalities. Currently, there are 59,500 active e-resident digital ID cards. Since March 2022, citizens of Russia and Belarus have been ineligible to apply for Estonian e-residency.
E-residents have founded or co-founded over 32,200 Estonian companies, representing about one in five new local companies each year. Additionally, 38% of Estonian startups are linked to e-residents.
Estonia launched the world’s first e-residency programme in 2014 to offer foreign nationals secure access to its public e-services, promote cross-border entrepreneurship, and generate additional revenue for the national budget.
Since the programme’s launch, the direct economic impact on the Estonian state has amounted to €244 million.
