In the first half of 2023, companies owned by Estonian e-residents generated tax revenues of EUR 37.7 million, an increase of 57 percent compared to the same period in 2022.
The bulk of the tax revenue, 55% or €20.6 million, came from labor taxes paid by e-resident companies registered in Estonia. The remaining 45 percent, his 17.1 million euros, was collected mainly from special income taxes such as dividends.
In addition to taxes, e-residents also paid €1.4 million in state fees, increasing the economic impact of the program to €39.1 million in the first half of 2023.
Minister of Economy and Information Technology Tit Liisalo said the e-Residency program continues to perform well. “For a growing number of foreign entrepreneurs, e-Residency is a convenient way to do business in the European Union, offering digital solutions for secure and transparent operations with low administrative costs. However, maintaining and developing national IT systems is expensive.'' In the case of e-Residency, our return on investment is quite high. For every 1 euro that Estonia spends on e-Residency, the program receives 7.6 It generates a return on euros,” said Riisalo, adding that e-Residency is nothing special for Estonia. It is just a profit machine sold to foreigners, but it also benefits many local Estonian companies. is a public electronic service that brings
Liina Vahtras, who took over as the new managing director of the e-Residency program in early June, said these results (nearly 65% of the €60 million target set for 2023) were the most optimistic forecast. admitted that it exceeded that. “We are working hard to accelerate the issuance of digital ID cards so that e-residents do not have any delays when setting up business in Estonia,” said Vaatlas.
The bulk of tax revenue in the first half of 2023, 12.6 million euros, will be generated by e-residents engaged in professional, scientific and technical activities, followed by information and communications companies with 10.5 million euros, administrative and support services. Activities amounted to 12.6 million euros. 3.7 million.
At the end of June, e-resident companies employed 5,027 Estonian residents, an increase of 284 compared to 2022.
Despite a slight decline in major markets, Estonian e-residents founded 2,302 new companies in the first half of 2023, an increase of 6% year-on-year. Nationals of Spain, Ukraine and Germany started the most new companies, with Turkey showing the fastest growth, followed by France and Italy.
As of the end of June, Estonia had issued electronic resident digital IDs to 5,428 foreigners, which is comparable to the annual average in recent years, or approximately 5,428 people. 1,000 new e-residents every month. The countries with the highest number of new applications are Spain, Ukraine and Germany, followed by Turkey and France, all of which are showing strong growth trends.
In 2022, the e-Residency program generated a total of EUR 51 million in direct economic income for Estonia, while the total cost of the program (including contributions from partner institutions) amounted to EUR 6.68 million.
To date, Estonian electronic residence status has been granted to 105,500 people from 176 countries (excluding re-applications and invalid identity documents). Over the years, these e-residents have established their more than 27,000 companies in Estonia. There are currently 61,350 active electronic resident digital ID cards in use. As of March 2022, Russian and Belarusian nationals are not eligible to apply for Estonia's e-Residency program.
Estonia launched the world's first e-mail service at the end of 2014, with the aim of providing foreigners with secure access to public electronic services, while at the same time promoting cross-border entrepreneurship and generating additional revenue for the state budget. Residency program started.
That's why Estonia is the only country that offers 100% digital entrepreneurship solutions to foreigners, giving them a state-of-the-art toolbox to start and run a location-independent international business.
Over the years, this program has generated approximately 183 million euros in tax revenue and state fees for Estonia.
In 2022, the Estonian government approved a new growth strategy for e-Residency, which envisages the program's annual revenue reaching 100 million euros by 2025.
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