Temporary residence permit
The issuance of residence permits is subject to the annual immigration quota, which cannot exceed 0.1% of the Estonian permanent population in one year. This does not apply to American or Japanese applicants or to citizens applying for residency to do research or study.
BusinessResidency is granted to foreigners who participates in a company or operates as sole proprietor or invests in a business activity in Estonia of at least € 65,000 (€ 16,000 if self-employed). The capital stock, the subordinated liability and the amount of the fixed assets registered can be considered as investment.
Temporary residence permits usually have a validity of 5 years. After that, you may renew the permit or apply for permanent residency. Provided that your place of residence has been entered in the Estonian population registry, you have health insurance, permanent legal income (€ 260 / month) and an Estonian language B1 level.
After living in Estonia for 8 years, 5 of which must be holding a permanent residency permit, you may be eligible for naturalization. To become citizen, it is required an Estonian language proficiency, pass an exam of the Constitution and the Citizenship Law, a permanent legal income (€ 260 / month) and loyalty to the Estonian state.
Estonia does not recognize dual citizenship for naturalized citizens. Anyone who is granted with Estonian citizenship by naturalization must renounce its previous nationality.
- Have an actual place of residence is Estonia register it in Population Register.
- Have health insurance.
- Business plan in Estonian or English.
The description of business plan must express the following data:
- name and registry code of the company or the sole proprietor
- business idea- planned activities, potential clients and suppliers, plans of development, fixed assets available for the company, circulating capital, labour force being used
- financial forecasts for the next two financial years - projected income statement, balance sheet, cash flow forecast
- Curriculum Vitaes of the persons who perform managerial and supervisory functions
- Motivation, why the settling of the applicant in Estonia is important for enterprise
After the lapse of one year, when applying for the extension of residence permit, the investment requirement set for application for residence permit may be replaced by the sales income (at least €200,000 per year) or by the social security tax paid in Estonia (in each month at least equal to the monthly social security tax paid in Estonia from the fivefold remuneration of Estonian annual average gross wages).
European Economic Area
Dual citizenship is not recognized in Estonia. To become a citizen of Estonia, you must renounce your previous nationality.
- One passport-size photo
- Evidence of Health Insurance
- Proof of income
- Business Plan
- Investment Plan
- Original or Certified copy of Birth Certificate (if applicable)
- Original or Certified copy of Marriage Certificate (if applicable)
- Documents certifying Business Investment
- Receipt of payment of fees
- Original and photocopy of passport
- dual citizenship No
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required No
- Language skills required No
- Interview required No
- Investment Single €65,000
- Investment Family 4 €65,000
- Minimum annual income €3,120
- Time to citizenship 120
- Time to permanent residency 60
- Visa-free countries 164
- Financing available No
permanent residency benefits
temporary residency benefits
FeesPlease sign in to view
|processing fees main applicant||€180|
|total fees main applicant||€180|
|processing fees spouse||€180|
|total fees spouse||€180|
|processing fees dependents -18||€180|
|total fees dependent -18||€180|
Estonia is a world leader in digital governance and is one of the most digital advanced countries. All Estonians receive a digital ID card that gives them access to around 4,000 services online, from managing their finances, registering companies, signing digital contracts, paying taxes or asking for prescriptions, even voting. They are also pioneers in the conception and implementation of the E-Residency, a transnational digital identity card for non-residents issued and backed by the Estonian Government.
Visa Free Travel
To be a considered a tax resident in Estonia you must have a permanent residence and/or stay more than 182 days in a 12-month period.
Tax residents are subject to income tax on their worldwide income at a flat rate of 20%. Non-residents pay taxes on their income accrued in Estonia.
Capital gains are considered ordinary income and taxed at standard income tax rate. Investment income is usually taxed at normal rates. However, a tax deferring may be available under an investment account scheme where individuals can reinvest investment income and capital gains tax-free.
Domestic dividends are exempt from taxation, dividends obtained abroad are exempt provided that were taxed on source. Interests from financial institutions of the EEA are tax exempt. Rental income and royalties are taxes as ordinary income.
Estonia does not have controlled foreign company rules, which means that profits retained in a foreign entity own by an Estonian tax resident may not be subject to taxation.
V.A.T. standard rate is 20%. Reduced rates of 9% and 0% applies to certain goods and services.
Lands are subject to a property tax that ranges from 0.1% to 2.5%, except for residential lands. There are no transfer, inheritance and net worth taxes in Estonia.
Regarding corporate taxation, resident entities are subject to tax on their distributed profits at a 20% tax rate. Non-resident entities are subject to tax on their income accrued within Estonia.
Undistributed profits may be retained in an Estonian entity tax-free. To learn more about Estonian corporate legal framework, taxation and tax treaties, check out incorporations.io/estonia.
This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax Yes
- Transfer tax No
- Inheritance tax No
- Net worth tax No
- CFC law No
- Tax residency days 183
- Personal income tax rate 20%
- Capital Gains tax rate 20%
- Investment income tax rate 0%
- Territorial taxation No
ProceduresPlease sign in to view
Flag Theory | Passports.IO and our qualified attorney in Estonia, will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain free as possible.
First, our lawyers will conduct a due diligence check on you to ensure that you are eligible and meet the criteria to apply for the program and your application will be approved.
If required, we will incorporate your Estonian company. We recommend getting the e-residency card prior application. We will introduce you to several banks in order to open personal and corporate bank accounts. We work primarily with banks that allow for remotely opened accounts to ensure that you are ready to start your business and apply for the visa as soon as possible.
We will send you the application forms and provide assistance to complete the questionnaires, translate and authenticate documents. You must do a medical check and acquire a health insurance. Application must be submitted to a Foreign Representation office of the Republic of Estonia.
Once your application is approved, you may apply for your residency card, that will be issued within a maximum period of 30 days at the Foreign Representation office. The whole process takes within 3-4 months.
For further information on Estonian temporary residence permits and detailed procedures, contact us for a free private consultation.