Hi guys! Do you know any e-resident who is operating an e-commerce in Estonia?

I am happy to pay a consultant fee to a knowledgeable e-resident who has an online shop, please?

.

As an e-resident, I’ve registered a company with 2x local Estonian partners. But we’re facing challenges in setting up accounts with local companies due to my e-resident status.

For example, maksekeskus (makecommerce.net) don't want to approve an account with us because I'm e-resident. Also, no local banks wants to work with us nor delivery companies.

.

We are 3 business partners, 2 resident in Estonia and because I am the e-resident, we haven't been able to start the operations due lack of options to run the online shop with local solutions in Estonia.

Therefore, does anyone here has experience with building an e-commerce as a e-resident, please?

I’m trying to better understand the role of service providers in the context of Estonian e-Residency. Aside from offering a company address, a contact person, and assistance with filing the annual report, do these service providers typically provide other essential services?

If I already have someone who can provide a compliant company address and contact person, and I am comfortable filing the annual report myself, is it still necessary to engage a service provider? Are there any additional benefits or services they offer that might make them indispensable for e-residents?

I’d appreciate insights from anyone who has experience navigating this process or using such providers.

Looks like many people are considering to open OÜ to reduce taxes and so on. This information is not going to be 100% perfect for every individuals here but will explain the basic things to check whether it will save you taxes or not.

This does not constitute taxation consulting or advice.

Make sure talk to the Estonian accountant for the rules in Estonia. Make sure you talk to an accountant at home. If you are living in other countries, make sure you talk to an accountant in those countries.

Also, I may have misleading information so correct me if I am wrong + do not take this as like 100% right. Everyone has different nationals so it may not even close to your situation.

----- Short Summaries

1. Estonia is not a Tax Haven but it has a very clear tax rule and indication. Like some countries have open words that you have to look up to the previous cases to determine if you are tax resident like that. Estonia clearly states and will tell you if you are the tax resident. Which is the reason why I opened the company in Estonia.
2. Check the tax resident rules in your home country. Most likely you have to look for what makes you a 'NOT Tax Resident' than what makes you a 'Tax Resident' at home country.
3. If you are living somewhere outside your home state. Check both countries rules. Remember that becoming a tax resident in one country does not make you non tax resident in other country. They can both claim you as a tax resident. And that is why there are dual taxation agreements.
4. Make sure you follow the 'offshore business and beneficial owner' policies in countries you are living in + your home state.
5. OÜ is Estonian. Some rare cases, you have to report your income to a country you are living in and your home state. And, you have to report incomes to Estonia (obviously), resident country, and your home country.

Like I know one country does not really care about the offshore company but they care about the worldwide income. So, if your home country is strict with tax residency or PE rules, then you might have to pay income tax to the country you are living in while reporting the corporate income to your home country.

It is very spooky with taxes. It is all about the examples and the rulings from the court cases. If you make a lot? I would read those cases to find how more likely turn out to you.

5. Remember that the accountants make $$ from filing reports. It wasn't the case in Estonia since the rules crystal clear (which makes very attractive for me to setup a company there) but it was an account back home that she always told me to report everything. While I have spoken to some tax authorities and other accountants that I wouldn't even be considered as a tax resident. Talk to multiple accountants and if the stakes are high, I recommend reading court cases to find similar examples.

6. Even tho 183 days rule is not like a set thing but use it as a basic measure if you are staying in the country that is not your home.

----- Individual Tax Residency

1. Tax Residency - 183 Days?

Every country has its own rules for tax residency. The Estonian government states 'A natural person is a resident if his or her place of residence is in Estonia or if he or she is staying in Estonia for at least 183 days during 12 consecutive calendar months'. And they have rules for how to count 183 days.

For your nationality, you have to make sure that what makes you 'NOT tax resident' in your country. Like in Canada, https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html - if you have a family in Canada even if you were leaving abroad more than a year, you could be considered as a tax resident and the government will try to tax you.

You have to ask the accountants in your country to check how likely to be considered as a tax resident in your country with your current status at home. Some countries only consider 183 days but others may not.

But it is mostly used because it is the basic measure of the tax residency rule according to the international standards.

1.1. Digital Nomad or Temporary Visa or Working Holiday - staying over 183 days

This is pretty important if you also move around the countries. Normally, if you are in one country more than 183 days but with like a digital nomad visa or working holiday, the host country doesn't really care and will not consider you as a tax resident (meaning you only pay salaries that you generated in that country you are in).

However, if you stay 183 days in Canada and do not have a close tied to Canada. Then you are under the 'deemed resident' of Canada. Which you pay worldwide incomes <--- if you are a digital nomad or a working holidayer here then prob this will be the case.

But, if you are in Croatia with a Digital Nomad Visa, even you stay more than 183 days you will not be taxable and it clearly mentions on their government website that you should not engage any type of economic activity inside Croatia (https://mup.gov.hr/aliens-281621/stay-and-work/temporary-stay-of-digital-nomads/286833).

A DIGITAL NOMAD IS a third-country national (this means a non EU/EEA/Swiss citizen) who is employed or performs work through communication technology for a company or his own company that is not registered in the Republic of Croatia and does not perform work or provide services to employers in the Republic of Croatia.

So, 183 days rule is a good measure but do not just rely on 183 days rule.

2. The government does not really want you to be a tax resident (sort of)

Sometime, it is the case that you have to do a lot to proof that you are indeed a tax resident in the country that you are staying or at home. It is because of the 'tax benefits' or 'health care' or any type of welfare structure they have.

There was a case that one working holiday person in Australia went to a court to claim that she was indeed a taxable resident in Australia to get the tax benefits.

Some governments do not really care if you don't really report things even though the rule is to report the worldwide income until you come back home with $$$$$.

So always talk to the accountants at home and the country you are visiting/staying more than 183 days if you will become tax resident, non-tax resident, or deemed tax resident or whatever there is.

3. Dual Taxation Agreement

Each country has its own rules for determining tax residency. It’s not as simple as leaving the country for 183 days to automatically become a non-tax resident, especially in countries where your nationality is a factor.

Theoretically a country with weird policies could claim you are a tax resident. But, many governments do not really bother to do so because of the tax benefits or they don't have capability or resource or simply busy dealing with rich people who are invading taxes in its country.

But it is always good to check if there is a dual taxation agreement between your home and wherever you are staying. Some countries do consider the paid of taxes in a country without the dual taxation agreement as 'dual taxation agreement country'. Meaning they will deduct the tax you paid to a country like how the dual taxation agreement works.

4. Most E-Resident is not tax resident in Estonia (unless you live there then you become a real resident from E-Resident)

So it is all about your home country vs the one you are staying or simply your home country.

----- OÜ and PE

This is probably the most important thing. But, there is a reason why personal tax residency matters for OÜ and PE. A policy about PE or any type of offshore corporation ownership can be different according to your tax residency in a country you are staying.

1. OÜ is basically ESTONIAN

OÜ is Estonian meaning that you will have to deal with the country you are a tax resident vs Estonia. If you are at home, then you just have to check the your home country and Estonian rules. Which is pretty straight forward. Most countries whether they will consider you have a Permanent Establishment at home, they will ask you to register the company to their local tax authorities.

https://www.gov.uk/guidance/register-an-overseas-entity (this is the guidance for the UK residents).

It is because, E-Residency sounds fancy but you can open offshore businesses in many countries without even being there. So a lot of countries already have rules for those. Some are stricter than others. So check with the accountants what are the rules for possessing offshore businesses.

Even if you are not a tax resident at home country, you might have to register it because of your nationality. So check the policies for that too. Or it might be beneficial to report it if you are willing to move back to a country, then you might be able to have benefits or like that.

2. If you are a tax resident in other countries than your home state

It could become three ways. You have to deal with the individual tax residency with the country you are staying. While you are dealing with the PE rules between Estonia and the country you are staying. Potentially you are becoming a tax resident in both countries then you also have to deal with the OU & PE Estonia <--> Country you are living in and Estonia <--> Your home country.

99% it does not go this extreme. 99% of the cases that they won't really care. But just check and follow the rules because once you are making enough (it can be something like 20,000 euros to some countries), the country you are in could target you for the tax invade. ALWAYS make sure you are off the hook.

Hey guys,

So, I plan to move to Portugal soon on a Digital Nomad visa.. And I was wondering how will my OÜ be taxed there? Will it be fully taxed as a company like in Portugal since I'm the only owner and manager and I will be a tax resident of PT?

And if so, I'm also questioning what is the entire point of e-Residency and having an OÜ? Wouldn't it be simpler for me to just open a Portuguese company? I'm still trying to understand what's the benefit.

Please let me know your thoughts guys if you have some experience on this.

Thanks in advance 🙏

Hi everyone,

I’m from Spain and I’m interested in setting up a business in Estonia. I’d like to know more about the monthly costs involved for those of you who already have companies there.

Specifically, I’m curious if it’s possible to handle only the VAT filings and the annual tax report, without needing additional accounting services every month.

Any advice or shared experiences would be greatly appreciated!

Thanks in advance!

Hi! I'm working as a contractor in Czechia with my Estonian company. How should I withdraw founds?

I have asked several tax authorities in Czechia but they aren't capable to grasp that I wanna pay taxes here not in Estonia.

Is it possible to become a freelancer in Czechia and just invoice myself? This seems to be the easiest but I'm not sure if its compliant.

What do you suggest?

Hi everyone,

I’m an Iranian e-resident, and I’m currently facing challenges with registering my company in Estonia. While I’ve obtained my e-residency card successfully, it seems that many service providers are hesitant to assist Iranian residents due to international restrictions and regulations.

I would like to ask:

• Have any Iranian e-residents here successfully registered a company in Estonia?
• Which service providers were helpful in this process?
• Did you encounter similar obstacles, and if so, how did you overcome them?

I’m open to any recommendations or advice regarding reliable service providers or alternative approaches to move forward.

Thank you in advance for sharing your experience

Hello everyone,

I’m seeking your advice. I currently operate two companies in France (a micro-company and a classic structure), and earlier this year, in February 2024, I opened a company in Estonia through my e-Residency to launch some side projects. As the year ends, I’m now addressing the accounting aspect and have been reaching out to accounting firms for quotes.

Here are the details of the company’s activity:

• 11 months of operations.
• Approximately 250 transactions over the year (mostly 20 SaaS tool subscriptions per month).
• 1 bank account. No cash, crypto, stock, warehouse, employees, loans, investments, or assets.
• No VAT.
• Total revenue: less than €10,000 with €0 profit.

To my surprise, the quotes I’ve received are all over €3,000 (including tax)! That’s equivalent to 30% of my total turnover, which seems disproportionate. From my perspective, managing 250 transactions for a side project should not be this costly.

For comparison, here’s how it works in France:

• Micro-company: No accounting required for revenue under €70,000—so €0.
• Classic company: Over 300 transactions per month (around 4,000 annually), and I pay €80/month (€960/year).

Have I misunderstood the landscape, or am I looking in the wrong place? Does anyone have recommendations for an accounting firm in Estonia with reasonable rates? I don’t currently have the cash flow to cover such high accounting fees for a side project.

Thanks in advance for your insights!

I've look at getting an American Express Business Platinum, but realised that only a gold card is available for Estonian businesses. I have a private gold card already though.

Any advice on this?

I am wondering if any Americans have experience on how taxes work as an owner of an e-resident company.

Do you basically get no advantage from the "profits are not taxed until distributed" setup? Or does that still work?

Is it a disregarded entity if you are single owner? Pass through taxes as if any profits are personal income? Anything with it being a CFC and GILTI tax?

I cannot find much info or experience from Americans in regards to these topics, and I want to make sure I fully understand.

Hey everyone!

I'm curious if anyone here has managed to get payment processing for their e-commerce store, specifically as a non-resident of Europe? I'm an Estonian e-resident and I'm running a dropshipping business. Finding a payment processor that works for high-risk industries and also accepts non-European residents has been a real struggle.

I'd love to hear about any successes you've had, or even just tips on what companies might be more flexible for this situation. Anything helps!

Thanks in advance :)

Currently Estonian tax resident. Have OÜ, which makes under 600 eur a month, side income, online work. Income stays in the company and gets invested. What would be tax implications if moving to Germany?

I am planning to start an education consultency company in Estonia to dodge breucratcy and taxes and will be making less than 40k € annually. I will be paying some consultents in France, Italy and Germany for their services. I will serve Turkish students. Do I need any kind of professional help like a lawyer or should I just go for it?

Thanks everybody who helps.

Hi everyone!

I am looking into banking options that can work with the e-Residency program. I wanted to hear about your experiences - which banks agreed to work with you? What process did you expect compared to what actually happened? And in general, are there any recommendations on a particular bank that is more suitable in terms of services, fees and support for digital businesses?

Thanks in advance to everyone who will share tips and insights! 😊

I filled in application for e-Residency about a month ago.

I now received an email from the police asking me to: 1. Provide all my contacts in Estonia; 2. Upload a video talking about my plans; and 3. Provide links to my achievements and articles.

They have given me three days to do this.

I don’t have any contacts in Estonia. I provided my LinkedIn during the application. And I cannot describe how much I do not want to film myself and upload a video.

Is this a normal part of the application?

If filming a video of myself is required I would rather not bother. Can I just get a refund?

Hey there! Two weeks ago I stumbled upon the possibility of becoming an e-resident through the e-residency in Estonia. It sounds very interesting and I'm thinking about moving my freelance-business from Germany to Estonia.

But before I (maybe) do it, I want to get more informations. So I'm asking you, if anybody created and runs a Freelance business through Estonia? If so, I wanted to ask:
- Will I have to pay any other costs in addition to the application fee?
- What do I need to pay particular attention to when setting up a company? (e.g Legal form of Freelance business)
- What bank-account do you use? - Is there any kind of source to gather informations or to get an Consulting via online-call etc?

Looking forward to hearing form you!

Hello,

I am literally paying 80€ a month for an accountant when I am only making 2 or 3 transactions a month worth 20$ or less. Is there any tutorial that would show me how to do my own accounting, VAT declaration etc ?

I imagine it isn't really complicated and it gets really frustrating to pay that much money for something I would like to do myself.

Thank you

Has anyone opened a company in estonia being minor?

Hi everyone, I am setting up a new business and came across the e-residency in Estonia where you can remotely run a company there while living in the UK, and save on corporation tax.

If i live in the UK would I also need to pay corporation tax in the UK or would it just be income tax?

Hello everyone first of all I am minor and wondering if I can open a company on Estonia and then about banks, what are the best banks for shopify sync?

I created an Estonian OÜ for operating an online school for which I needed Stripe integration. No bank wanted to open a bank account, because local banks such as LHV require a 'strong connection' to Estonia, and digital ones, like Revolut, end up requiring a legal permit or Visa emitted by Estonia, which is basically the same. In short, I couldn't open a Revolut account for the Estonian OÜ, because they don't accept the e-residency as a valid document. Therefore, all the process was a waste of time and resources. Without a bank account that integrates with Stripe the OÜ is useless. I'm not saying it doesn't work in some cases, but do your research so it won't happen the same to you. For me it was pure BS.

https://preview.redd.it/f2qo09j9bmsd1.png?width=1232&format=png&auto=webp&s=f4b4a5647fe60359d3f9e3791c8cdcccc9f910dc

That is Revolut disclaimer that I discover doing the verification process.

PS- I wanted to change the title and replace 'scam' for 'uselss', as some people have rightly pointed that out.

I would appreciate your advice on how to proceed in this situation, as well as any recommendations you may have regarding the drafting of contracts and the management of transactions. We are a company who just start their business in drop shipping (intermediary) field. we will start selling/invoicing soon and need your best advice guys. Of course we already asked for legal advice but just want to know if you guys had the same experience on this.

1. Current Activity:

I am currently working with large companies as both a supplier and a client. However, my company cannot make direct purchases or sales, nor can it have a warehouse as e-business. Therefore, I do not have the capacity to import or export products.

2. Sales Structure: I have been proposed to facilitate sales directly between the supplier and the client, acting as an intermediary. My intention is to formalize an intermediary contract that defines my role in the process, but I do not want it to reflect that there is a commission involved in the transaction, as this might not be well received by clients.

3. Invoicing: Although it has been suggested that I should not invoice directly due to the lack of insurance—so that both companies can ensure the transaction between themselves and I avoid the risk of non-payments—I still want my company to invoice because it is necessary. I need guidance on how to navigate this situation legally while ensuring my company can issue invoices.

4. Insurance: Additionally, I would like to know if it is advisable for me to have insurance to cover potential risks related to my role as an intermediary since I currently do not have an insurer.

Thank you for your assistance.

Hello everyone,

I’m a Portuguese citizen residing and working in Portugal, where I pay taxes through my full-time job. My business partner and I (we’re 50/50 partners) have developed software that we want to start selling. Currently, most of our customers will be Portuguese, but we don’t have an office. We’re exploring options to establish our company in a country with a simpler and more favorable fiscal system. Our goal is to reinvest profits back into the company and only pay taxes on dividends when we choose to distribute them.

We’ve been looking into Estonia’s e-Residency program and are intrigued by the potential benefits. As EU citizens, we’re curious about how tax treaties between Portugal and Estonia might affect us. Specifically:

•	Taxation: How does the taxation work if we set up an Estonian company but reside in Portugal? Will we pay corporate taxes in Estonia and personal taxes in Portugal when distributing dividends? How do the tax treaties between Portugal and Estonia influence this, especially concerning double taxation and tax rates?

•	Customers in Portugal: Given that most of our customers are in Portugal but we have no physical office, are there any legal or tax implications we should be aware of?

•	Benefits: What are the real advantages of having an Estonian company in our situation? Is it truly more straightforward and beneficial for reinvesting profits?

•	Legal and Fiscal Obligations: Are there any potential pitfalls, compliance issues, or additional obligations we should be aware of when operating an Estonian company from Portugal?

We’d greatly appreciate any insights, experiences, or advice from those who’ve been in a similar situation or have expertise in this area.

Thank you in advance!

Hi,

I'm looking for advice on structuring a company to maintain privacy while using Estonia's e-residency program. Estonia requires ownership and management details to be public, and nominee shareholders or directors are not allowed. However, I'm considering the following structure and wondering if anyone has implemented something similar:

U.S.-based Holding Company: Set up a holding company (LLC or Corporation) in a U.S. state like Delaware, Wyoming, or Nevada, which offers privacy for owners. This holding company would own and manage the Estonian company, so only the holding company's name appears in the Estonian business registry, not mine personally.

Privacy Protection: The holding company would act as both the shareholder and board member of the Estonian company. My name would only be associated with the U.S. holding company, limiting my public exposure in Estonia.

Professional Service Providers: I'm also considering using professional service providers to manage the company operations without appearing as formal "nominees."

Of course, my goal is not to hide my name from the Estonian authorities. The aim is solely to avoid being publicly exposed and to enhance asset protection.

Has anyone used a similar structure to maintain privacy with an Estonian company? What challenges did you face, and how effective was this setup?

Regards, TS

Can we create a developer account for Apple Developers Program or Google Play Console using eResidency?

Basically i have a mobile application where I will be reselling eSIMs that are obtained through partners. According to them I require some kind of license. Has anyone ever dealt with such situation?

1. Have you ever used Xolo.io? Does it handle like, everything? Do you need anything other than that service?
2. I want to form my company as Private limited company (OÜ), but I'm having a hard time knowing which activity code I should choose. How can I do it? Who can help me with it? Im working on an application that my users will be able to buy eSIMs from. I will partner with companies who will provide me the eSIMs through APIs and I will resell them in my app. I also want to create many different applications in the future.
3. Which bank do you prefer dealing with?
4. Who do you recommend to consult for Tax and Legal questions?