It doesn’t matter if you are an e-resident or not, here are some good points why Estonia is one of the best countries in the world to locate your business:
– minimal bureaucracy and clear tax framework
– easy infrastructure
– low startup and maintenance costs
– remote administration from anywhere in the world
– 0% company income tax until distributions are made. More money stays in the company, thereby giving businesses the ability to set up a remote team faster and more successfully. Remember that e-Residency does not determine tax residency
– company is located in EU, that increases perception of trustworthiness
– inclusion in the EU’s legal framework
– digital signing. You don´t have to print and scan your or use expensive international couriers to send documents
– both the European Union and the United States recognize e-residents’ digital signatures as being legally binding
– pay taxes online
There are five forms of business entities, which you can choose from to register:
– private limited company (Osaühing)
– public limited company (Aktsiaselts)
– general partnership (Täisühing)
– limited partnership (Usaldusühing)
– commercial association (Mittetulundusühing).
The most popular on is private limited company. It’s also possible to move your company or develop its branch in Estonia. If you want to become Estonian resident company, you’ll need to appoint a director ( or ask for nominee services). Here is one quite unique thing about Estonia’s tax system – the 20% corporate tax is only paid on distributed profits. As long as profits are reinvested rather than being distributed to shareholders through dividends, no corporate tax is owed. When profits eventually are distributed as dividends, the 20% tax is paid by the company not the person receiving the dividends.
Estonia is not a Seyshelles-like tax heaven, but the tax burden is still far from the highest! The most common taxes you need to know about are income tax (20%), corporate tax on profits (20%) and VAT (20%). There are also social taxes totalling around 35% for employees and directors that perform their services within Estonia. If you use employees from any other countries, you pay social tax to their homeland.