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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 or family reunification, to study, work or do business. In order to qualify for temporary residence, medical insurance and proof of income twice the level of subsistence in Estonia is required. In 2019, the subsistence level is €150 per month for the first family member and €120 per month for each additional family member.

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


Major investor

You may obtain a temporary residence in Estonia, if you make a direct investment of at least €1,000,000 in a company registered in the Estonian trade register, investing primarily in Estonia or in an investment fund, from which most investments are made in Estonia.

The amount invested must be maintained throughout the period of residence either in the same investment or in another that meets the requirements.

The investor may not be required to have a place of residence or register the place of residence in the Estonian Population Register.

A 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 through holding a permanent residency permit, you may be eligible for naturalization. To become a citizen, you must have proficiency in the Estonian language, 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


- Have health insurance.
- Documents certifying the investment.

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
  • 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 €1,000,000
  • Investment Family 4 €1,000,000
  • Minimum annual income €3,120
  • 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. It gained independence from the Soviet Union in 1991, and since 2004 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, and has a population of approximately 1,287,000 people. Its capital and most populated city is Tallin.

Its official language is 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 digitally 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, and 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 in the country 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 the standard income tax rate. Investment income is usually taxed at normal rates. However, a tax deferment 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 they were taxed on source. Interest from financial institutions of the EEA are tax-exempt. Rental income and royalties are taxed as ordinary income.

On January 3rd 2019, Estonia implemented the EU-wide Anti-Tax Avoidance Directive Measures, which include new rules on controlled foreign companies (CFCs).

The V.A.T. standard rate is 20%. Reduced rates of 9% and 0% apply to certain goods and services.

Land is subject to a property tax that ranges from 0.1% to 2.5%, except for residential land. 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 the 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.

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 that your application will be approved.
If required, we may introduce you to our network of financial advisors in Estonia to find the most suitable investment option.

We can also incorporate your Estonian company and 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 invest and apply for the visa as soon as possible.

Once the investment is made, we will send you the application forms, provide assistance to complete the questionnaires, and translate and authenticate documents. You must undergo a medical check and acquire health insurance. The 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, which 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.

Consultation with

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