Estonia e-Residency

[Michail]

Has anyone succesfully set up an estonian company through the E-residency scheme to have access to the EU market?

Is this feasible?

[WTFH]

What do you mean by “access the EU market”?

People have done it, but it’s not the panacea some imagine it is. E.g. it’s not going to grant you access to the EU market for any contract that requires on-site working. It works for 100% remote. It doesn’t give you EU citizenship or right to work in EU countries.

[jamesbrown]

As above, no idea what "access the EU market" is supposed to mean. You are probably confusing your corporate and personal status. The general rule is that you are personally taxed where the work is done and you will need a right to work where the work is done. Taxation of your corporate entity is a bit trickier because, as a controlling person, you can create a permanent establishment where the work is done, which translates into a taxable presence. Anyway, selling professional services to EU markets is perfectly straightforward from the UK, providing you don't intend to work in the EU or you otherwise have a right to do so.

[Lance]

you can get 'access to the EU market' from Belfast. And still use a UK company.
But without an Irish passport it won't give you right to work in the EU (except Eire where a British passport is sufficient).

[Michail]

What do you mean by “access the EU market”?

People have done it, but it’s not the panacea some imagine it is. E.g. it’s not going to grant you access to the EU market for any contract that requires on-site working. It works for 100% remote. It doesn’t give you EU citizenship or right to work in EU countries.

Yeah, that is for remote working only i am interested in

[eek]

Yeah, that is for remote working only i am interested in

What do you hope to gain from it because if a firm is willing to do remote work they will have zero difficulty paying a UK worker.

Estonia is great if you are say in South America or India / Pakistan it doesn't offer many advantages for someone in the UK.

[lecyclist]

I've had it for many years, and keep it ticking over at a cost of around €150 per annum with a registered office forwarding service using an Estonian accountancy provider.

I had various intentions to use it for contracting work, and may do so in the future, but

1) It does not help me when looking for UK work, as I tend to find work through UK agencies that are reluctant to deal with non-UK counterparties B2B.
2) I have permanent EU residency that means I can use a UK limited company-local entity setup when required.
3) Some of the initial digital nomad tax arbitrage advantages have been restricted, like the ability to load the company from another entity and drawdown Estonian salary to minimise tax liability.
4) EE social tax, should you need to pay it, is higher than many countries.
5) One of the big incentives, no corporation tax on profits, only tax at point of drawdown, is widely available in other EU countries now.

The big plus IMO is the company administration/ tax can all be handled very simply electronically, with many of the the online forms easy to understand and complete, radio button driven and available in multiple languages (including English). By far the easiest company administration process I've encountered.

The best use case is for genuine entrepreneurs/ digital nomads with a digital product to sell, especially those outwith EU/ EEA, who need a gateway to the EU marketplace.

If you are applying for eResidency, be aware that the application criteria to obtain an EU VAT number for your OÜ (EE LTD CO equivalent) is more stringent than the old days, and despite what you might read about the possibility of completing an application remotely, you should expect to make at least 2 visits in person to Estonia to make the eResidency application/ complete paperwork/ apply for bank accounts.

There are many resources on the web you can read detailing the benefits / use cases for EE eResidency, and I suggest you read them to understand better if these examples match your circumstances.

[Michail]

What do you hope to gain from it because if a firm is willing to do remote work they will have zero difficulty paying a UK worker.

Estonia is great if you are say in South America or India / Pakistan it doesn't offer many advantages for someone in the UK.

Be able to travel and work. UK and generaly the west is becoming a pain in the arse to live in..

[WTFH]

Be able to travel and work.

You started the thread by saying you wanted access to work in the EU.

Which is it? Travel or access?

[edison]

You started the thread by saying you wanted access to work in the EU.

Which is it? Travel or access?

Without knowing the personal circumstances of the OP but it could be both, couldn't it?

There are at least 15 countries that offer a similar e-residency although some have more stringent criteria. Surely one of the benefits for digital nomads is the ability to work and do bit of travel and live in other countries.

One startup founder I know is basically a permanent digital nomad working and living in multiple countries.