Ask an accountant
For e-residents

Running an Estonian company as an e-resident

e-Residency lets you set up and run an Estonian company online, from anywhere. It doesn’t make you an Estonian tax resident: you pay personal tax where you are tax resident, and your OÜ pays Estonian corporate tax. We keep the company’s books in Estonia while you live wherever you like.

  • 0%Estonian tax while profit stays in your OÜ
  • 183days in 12 months in Estonia (or living there) make you tax resident

What can e-Residency do for your company?

A digital ID that opens Estonia’s online services. Powerful, but narrower than many founders assume.

What it gives you

  • Set up and run an Estonian company fully online
  • Run an EU company without moving to Estonia
  • Sign documents digitally — including your annual report
  • Access to EU business banking and payment services for your company
  • Estonia’s e-services, from anywhere in the world

What it doesn’t

  • Tax residency — you stay tax resident where you are now
  • Citizenship, residence, or a right to enter Estonia or the EU
  • A guaranteed bank account
  • A travel document or a physical ID

Source: the e-Residency programme’s knowledge base.

Where do you pay tax, and where does your OÜ?

Keep the two apart and most of an e-resident’s tax questions answer themselves. Estonia taxes the company — and a board fee, as payroll; the country where you are tax resident taxes you as a person.

Estonia

  • Your OÜ 0% / 22%

    Estonian for tax because it was founded under Estonian law: no tax on profit kept in, 22% of the gross when profit is paid out.

  • A board fee

    Payroll, taxed in Estonia wherever you live.

  • Us

    Your books and filings, done in Estonia, in your language. You send documents from wherever you are.

dividend / salary

Where you are tax resident

  • You

    Taxed as a person where you are tax resident, under that country’s rules and any tax treaty with Estonia. Estonia counts only if you live there or stay 183 days in 12 months — e-Residency doesn’t.

  • Your country’s view

    Run the company from home, and your country may tax its profit too — a permanent establishment. Worth checking before you assume Estonia is the whole story.

What else should an e-resident get right?

Three things that trip up founders running an Estonian company from abroad.

A contact person, sometimes

If your company’s address is outside Estonia, the law requires a contact person here — and only a notary, advocate, sworn auditor, tax representative or licensed provider can be one.

You sign — digitally

Your e-Residency card is how you sign, including the annual report your board must approve and sign every year.

Deadlines ignore time zones

Every month has its filing days, and the annual report is due within 6 months of year end. We track them all, so being abroad never means missing one.

A month of filings
  • by the 10TSD — taxes on salaries, filed and paid
  • by the 10Income tax on a dividend — on the same TSD
  • by the 20KMD — the VAT return, filed and paid
  • OSS return — every 3 months, by the end of the month after each quarter

TSD and KMD: a weekend or public holiday moves the day to the next working day.

What do we do for e-residents?

Everything an Estonian company needs from an accountant, done remotely and in your language.

Which plan do e-residents start with?

A one-person company with a few invoices a month usually fits Confident starter: full bookkeeping, VAT and monthly filings, with a named accountant. Growing? We’ll name the right plan before you pay anything.

Prices are in euro, before VAT. Whether VAT is added depends on our VAT status and where your company is established — your quote shows it before you sign.

What do clients say?

Reviews our clients left on Fiverr, shown word for word.

Our tag: Annual report

I was overwhelmed with the annual report of my Estonian company and Olena did it competently and patiently. Many thanks once again.

Reviewer D. · Dominican Republic
Fiverr

What do e-residents ask us?

Does e-Residency make me an Estonian tax resident?

No. The programme says so itself: e-Residency doesn’t confer tax residency, citizenship or a right to live in Estonia. Your personal tax residency stays where it was — Estonia would only count if you lived there or spent 183 days of 12 months there. The e-Residency and tax residency guide explains where you pay personal income tax.

Will my company pay tax in Estonia or where I live?

Estonia taxes your OÜ as an Estonian company, because it was founded under Estonian law. The country you live in may also look at where the company is really run from. If that’s you, at home, check your country’s rules — we’ll help you frame the question.

Do I need a contact person?

Only if your company’s address is outside Estonia. Then the law requires one, and it can only be a notary, advocate, sworn auditor, tax representative or a licensed trust and company service provider. Ask us and we’ll point you to the right option.

Can I open a business bank account with e-Residency?

e-Residency doesn’t guarantee one — banks and payment institutions run their own checks. Many founders start with an EU payment institution; which one accepts you depends on your business and where you live. Start early.

How do I pay myself from my OÜ?

Two usual ways. A dividend: the company pays 22% of the gross amount when profit goes out, and your personal tax on it is due where you are tax resident. A board fee is payroll, declared monthly and taxed in Estonia even if you live abroad; your own country may tax you as a person too. Which mix is right depends on your country.

What has to be in place before I pay a dividend?

Three main things, under the Commercial Code (§157): an approved annual report; profit to pay it from — the approved year’s, or profit kept from earlier years, less past losses; and net assets that, once it’s paid, still cover share capital plus the reserves that can’t be paid out. The shareholders then resolve the dividend, and the company declares it on form TSD and pays the tax by the 10th of the following month. A dividend paid without that basis may have to be paid back — and the board members who caused it are liable for it too.

Official sources: 9 · checked 22 September 2026

Tell us where you live and what your company does

We’ll tell you what applies to you — here and at home — and what a year of accounting costs. No commitment.

Ask an accountant

We reply within one working day

Your cart

Test mode: no money is taken. We are checking payments — please do not place real orders yet.