Since the launch of the e-residency program in December 2014, Estonian e-residents have established 13,000 Estonian companies around the world, with a current cumulative turnover of over 1.67 billion euros. This growth has been driven by the recent significant increase in Estonian companies founded by e-residents to gain access to the European Union market. E-residents have also reported a significant increase in new e-residents since the start of the COVID-19 outbreak.
According to Ott Vatter, e-residency's managing director, e-resident companies' sales are rapidly increasing.
“In 2016, the total turnover of e-resident companies based in Estonia was 72.4 million euros. Last year, it increased more than seven times and the total amount exceeded 535 million euros.”
According to him, the rapid growth is based on the recent increase in Estonian companies founded by e-residents. The e-resident has launched 8,300 new businesses in Estonia in the past two years. Estonia's total population is only 1.3 million people.
“In 2019, one in six new companies established in Estonia was founded by e-residents,” Vatter added. “This means that, on average, e-residents founded 11 companies every day. In 2019, e-residents founded nearly 50 percent more companies compared to the same period in 2019, further demonstrating location-independent business operations worldwide. It is related to a crisis situation.”
The increase in the total turnover of e-resident Estonian companies also drove the increase in average tax revenue for the same companies.
In 2019, the cumulative average tax revenue generated by e-resident Estonian companies increased by 32 percent.
“A large number of e-residency companies are bringing their products and services to the global market, many of which benefit from becoming EU companies thanks to e-residency and are also creating customer demand at a global level. Additionally, many of the businesses started by e-residents actively contribute to building a knowledge-based society and are active in sectors that generate significant added value to the economy,” explains Vatter. do.
Many e-residents who have set up companies in Estonia within the last six months are still working hard on developing their products and services.
“Entrepreneurs around the world understand the added value that e-residency brings, as Estonia's digital e-services offer them the opportunity to run their companies remotely. -19) With the pandemic still going on and many countries around the world still in full or partial lockdown, this has left entrepreneurs and small businesses desperately looking for alternative ways to keep their companies running. e-residency will always be there to support companies that are uncertain about their future,” Vatter concludes.
The e-Residency Program was launched by the Estonian government in 2014 with the aim of providing non-residents around the world with secure and transparent access to Estonia's pioneering digital services.
Holders of electronic resident digital ID cards can digitally sign documents and access portals and information systems that accept eIDAS-compliant Estonian ID cards. E-residency in itself does not provide Estonian citizenship, tax residency, residence rights, or the right to enter Estonia or the European Union.
But earlier this month, Estonia opened applications for digital nomad visas. This visa allows foreigners in Estonia to work for a foreign employer or as a freelancer.
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