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Estonia

Temporary residence permit

Under the Aliens Act, Non-EU citizens may apply for a temporary residence permit if they settle with a spouse, close relative, family reunification, to study, work or do business. In order to qualify for temporary residence, it is required a medical insurance and proof of income twice the level of subsistence in Estonia. In 2017, the subsistence level is € 130 per month.

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.

investment


Startup

You may obtain a temporary residence in Estonia, if you are starting a company with the aim of developing and launching a business model with such great, innovative and reproducible global growth potential that it will contribute substantially to Estonia's business environment. The project must be previously evaluated and approved by an expert committee of the Ministry of the Interior.

Temporary residence permit has 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.

Requirements


- Approval of the expert committee of the Ministry of the Interior.
- Have an actual place of residence is Estonia register it in Population Register.
- Have health insurance.

Restricted Nationalities


European Economic Area

dual citizenship


Dual citizenship is not recognized in Estonia. To become a citizen of Estonia, you must renounce your previous nationality.


Documents Required


  • 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)
  • Receipt of payment of fees
  • Original and photocopy of passport
  • Expert committee statement
  • 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 -
  • Investment Family 4 -
  • Minimum annual income €1,560
  • Time to citizenship 120
  • Time to permanent residency 60
  • Visa-free countries 164
  • Financing available No

Fees

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

Country details

Estonia
EUR
372
Tallinn
Europe
Estonian
1291170
The Republic of Estonia, is a Baltic Republic located in the north of Europe. Being independent of the Soviet Union in 1991, since 2004 it has been part of the European Union (EU) and NATO. It is bordered to the south by Latvia, to the east by Russia, to the north by the Gulf of Finland and to the west by the Baltic Sea. It is inhabited by approximately 1,287,000 people. Its capital and most populated city is Tallin. Its official language is the Estonian, although about a third of its population is Russian-speaking. In 2011, the Euro (EUR) replaced the Estonian kroon (EEK) as its official legal tender currency. The country also stands out for its responsible public finances, being the least indebted state (9.6% of GDP) of the OECD.

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

With your new passport from Estonia you'll be able to access 164 countries visa free
>

Taxes

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

Procedures

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.


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.

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.

First, your startup will be assessed by an expert committee of the Ministry of the Interior. The expert committee will give their opinion within 10 working days.

Once approved we will send you the residency 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.

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