My Thoughts on Estonia e-Residence
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- เผยแพร่เมื่อ 26 ก.ค. 2024
- nomadcapitalist.com/2016/05/1...
nomadcapitalist.com/2015/03/1...
Estonia revolutionized government ID with its innovative “e-residence” program that anyone in the world can register for. But beyond a plastic card, many non-residents found that running a company or opening an Estonia bank account was still difficult.
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You mentioned many untold issues on Estonian e-residency program. Appreciate it
I've had e-residence for a few years. I love talinn, what a great country and easy to work in. I haven't spent a winter there though. My Italian citizenship (by ancestry) is almost done processing. Then I need to think about what's next. Thanks Andrew for being a guiding light! One day when I'm bankrolling I'll come to the nomad conference!
Great video, Andrew. We love your transparency about the difference between the 5 figure entrepreneurs & 6-7 figure entrepreneurs and what you do.
Thank you!
U gave that example where a person making 80k would pay 18k meaning it wouldn't be cost efficient. Well in my country a person making 80k would pay close to 40k so yes it would be cost efficient to keep that 40 grand plus have the ability to grow faster as u invest that extra 40 grand
The Estonian consulate in NYC was really cool too
As an e-Resident myself, this makes sense. Another quality video.
The e-residency is meant to be a bureaucracy haven, not a tax haven. But, an advantage is also that there is no tax on corporate profits (unless they are paid out in any form). if you re-invest them.
@@tentimetex the point I am trying to collect now is the list of things can be considered as "re-investment" on the company. I want to compare with the scenario in Belgium in order to take a decision. Belgium for sure is far from being a tax paradise :) so maybe Estonia offers a more interesting scenario for a personal company.
Great video! However, I think Estonian parliament passed the law where you don't need an Estonian bank account to do a business. Any EEA bank account will do according to what I was reading. This was passed January 2020 I believe. Now that's not helping you if you're from outside of EEA, however if you're EEA based consultant/freelancer, I think it's a great starting point.
Good point, although many EU countries require a connection to the country to bank there.
@@nomadcapitalist that's very true. Normally you would need a connection to EEA to be able to bank here. It's why I emphasized it would be great for EEA based consultants/freelancers. People outside of EEA would need to go through Estonian bank, like you mentioned in the video. Cheers!
As much as I know , E resident can open corporate bank account in Germany totally remote . I think it's best for Small business to run remotely. Also ,if you create right structure, Estonia levies Territorial Taxation on Corporation !
I did look very seriously at this and although I decided not to continue I do feel you missed the finer points of it. There is no requirement to pay tax in Estonia if you pay yourself into a foreign bank account where you do pay tax. Your point about the banks is valid but the system allows you to have an EU registered company that you work for and your pay is transferred into your US or Malaysian account where you pay tax on it. Only money taken out from your Estonian account is liable for Estonian tax. Money paid in salaries overseas are not liable for Estonian tax.
Interesting.
Do you mean this on the corporate income tax level?
We were looking at using Eastonia to house a refugee whom we hired as a digital worker and supporting him using US funds. Main idea, looking for cheap living options. He did not want to move to Philippines, truly the cheapest digital nomad option. Ecuador might have been another choice. When one is not allowed to come to the USA, sometimes.these kinds of options are needed. We were just looking for cheap and safe and allowed for our hired budget.
Andrew, I'd love to see a video on "The best or easiest second Citizenship for Australians".
Kind regards,
Another brilliant video Andrew, thank you. You always talk about the idea of the next Singapore. Could you please make a video about North Macedonia, I believe there is a lot of potential there. And I know you have employed people from there so it will be nice to here from you, could it be that Macedonia is next Singapore? Thanks again
Great video, Andrew. In my opinion it's about figures and instruments that Estonia provides. It still may make sense in a lot of cases. For example, when it's a 5 figures US family of two from "ex"-Californians doing fed FEIE and safe harbor job. Subpart F deferral also may seem to be an option for US Citizens due to 20% being grater than 18.9%. Another potential option could be an actual nomad (socialist pun intended) visa which they passed as a law. -not a tax advice-. Thoughts?
Apart from North Macedonia, could you also make a video about Bulgaria?
Dear , looking forward to listen from your experts views about Lithuania culture safety residence ,business route to citizenship quality of life.
I'm the guy from Afghanistan
@Andy A. he’s probably gone :/
We will bring jihad in estonia also. 😇😇😇
@@diego.silveira F
🦍💨🇵🇰🏳️🇦🇫
Hi Andrew, can you please make a video about the new Estonia's digital nomad visa?! Thank you
Helpful video! Do you cover any tips for Canadian DN/Expats in your book?
Where in the world do you recommend for a affordable easy to set up tax friendly company?
Even after brexit as a European?
It's almost like governments could greatly benefit from a better understanding of business. Weird.
or banks could understand business!
you mentioned other countries, including a video on dubai. but a google search only shows e-residency hits for Estonia and a few of Lithuania. No info on e-residency for other countries. so, do any other countries offer this, or are we just talking about "setting up a foreign company abroad"?
Very interesting
If you work as a freelancer, you have immedeatly an eu tax number. Thats the only reason to me, why I've applyed to the e-residency.
What's good about it?
@@jonymx I imagine that it gives you automatic residency status to let you travel and do business throughout the EU.
@@k98killer it doesn't
@@jonymx the ability to do buisness with european companies. More trustful from what I heard.
Where I can find example of white paper for initial token offering prepared in Estonia?
An Estonian once told me if you can prove fluency in the language then you can apply for residency and eventually citizenship
The requirements for citizenship are 1) living in Estonia for the majority of a year for 8 years 2) basic communication level in the Estonian language 3) basic understanding of the laws 4) oath of loyalty. Alternatively if you can find an ancestor that had Estonian citizenship then all you need is to prove your ancestry. There is a slight difference between the two - the first must be renounced if you get any other citizenships after that, the second is inalienable.
Andrew, but what happens to these properties around the world owed by foreigners investors should they pass away. Would the governtment keep the properties?
Hi Andrew, are you ever going to do an item about Bulgaria and/or Hungary? They seem to have a very beneficial tax system in the EU. I have never seen something about Bulgaria where it's supposed to be one of the best worldwide, even to live in the EU. Thanks.
Hungary tax efficient, really? Is this some kind of joke? I can tell you first hand Hungary is the shittiest country in the EU to do business in.
Banks: Know your customer. (hate that)
does this still apply During COVID-19?
A good idea for EU citizens, would be to move to Estonia (officially have primary residence there, it could even be just a room), then establish your company there (they all speak English) and then just not be there for the rest of the year. That way, the banks will have no problem with you (because you live there) and you will be able to use the e-card to control your company from anywhere. You can then be anywhere else in the world (for less than 3 months at a time).
I thought you needed to be living for some years to stop being resident in your own country. To become resident you are going to need some more than just that.
What would the benefit be? Estonian taxes are not particularly low.
What is the “tax friendly quadrant”?
Hey Andrew! Appreciate the honesty. What about crypto/blockchain companies? Any thoughts on the crypto license that they provide?
Please check. It has autoactivated 2 years.
I just wanted to know if I can register my van as a e resident of Estonia. Anyone know?
I've never understood the appeal of Estonia's e-residence program. I constantly hear people rave about it though. There are literally no benefits provided by this program that cannot be found elsewhere.
The only profit you get is the way profits are managed there the rest seems quite similar to uk or other countries.. the way you open the door to Euro region for the rest of the world investors is the second reason many companies like that program. I tried it and the banking maintenance costs and the consultant monthly payment is as expensive as spanish monthly expenses..so I stopped the business there. The best opportunity was gone when banks started taking profits from small investors starting an startup there. There are a lot of institutional costs associated to having a company there not mentioned until you are setting up or settled down there
@@prometion7592 Interesting to hear that. I am trying to gather information about e-Residency to compare with the scenario in Belgium (where I live in) and decide the most suitable option for me. This part you said about "having a company there not mentioned until you are setting up" is quite scary. Did you use LeapIn services to open the company in EE? (or another company with the same goal) I would expect they may inform you of any possible "trap" on this process. Well, I will keep watching videos and googling information about it, it's kinda spreaded everywhere and it is not easy to collect and organize everything but it was a great plus read your experience here.
What do you recommend for a consultant building an online productised service?
hey, what is your thoughts about HK and long-term prospects of running a HK incorporated company (for int. consulting business)? will it be safe long-term? or better to move away soon?
Hi , Hong Kong resident here. Honestly the situation is way overblown. Most of the companies seems to be staying because of the priority access it has with china but there will always be companies that are more paranoid.
Stay away from Hong Kong. Too much grip of the CCP in Hongkong now. It’s not a place where you can expect law and order like it was a year ago. Also good luck getting a bank account there! It’s impossible! Safe ur time
You got the point and this started when Sweden was taking over all Estonian banks. And Estonians sold them those for profit. The ID card project was supported by “Reform Party” being in power on those days was an attempt to keep them in power. I didn’t had an ID card until 2012, because I used my old Estonian passport having US 10y Visa for business and pleasure (B1/B2) in first page. So, no border officer never went to the last page to see my Estonian details. But, to my surprise during 2006 parliamential elections (when I resided in Belfast, Northern Ireland) I had e-voted for the “Corruption Party” using my ID card? BTW. The software for US voting machines used in last elections has made by same programmers…
Can't view it
Sakasjvili is an Ukrainian minister
Another trinket card?
Hello mate, can this resident program card be used to travel around the world. Which mean as an travel document with leads into to the countries in the EU?
No it does not.
The buddha statue is beautiful 😍
i get the estonian e-resicency and also a company setup but it turned out to be a hoax in the end coz one still needs to go to estonia for a bank account. thats bs. they sold it like one could do business through estonia while sipping martini on mars.
You can try getting an EU e-bank account like Paysera! The bank for your company does not have to be in Estonia. It can be anywhere in EU!
So you don't recommend to get e residency in Estonia?
@@hareemhasan256 it was not suitable for me. I never intended to go to live in Estonia. I just needed a remote option which can be done in multiple countries- USA, UK etc.
I have an online learning platform as a side business, with that I make around 20k a year, that income is being taxed 42%. Anyone who has experience with registering small online business in Estonia? Is it worth it if the business only makes 15-20k a year?
Let me address a few points here:
it's much better to open up an Estonian company then opening in a corrupt country. Maybe you felt the same way while you were a US citizen, they enforce their law onto you. The tax you pay is the tool that the goverment uses to force their racist homophob rules. I much rather pay the double in taxes to where I agree where it's heading.
In the beginning the bank system had flaws, was not an easy ride... I changed to Transferwise Borderless account, it's flawless. Now there are several solutions. What you say is not true anymore.
Beside that you only get taxed when you take out money. There's no recurring fixed cost.
I'm a proud e-resident and if you're living in a ccountry which you disagree (temporarly!) this is the way to go.
Hi Zoltan, could we connect some how? I have some questions regarding your Estonian Company set up. Would be great to hear from you.
@@stanrising-betterbytheday3165 hi Stan, sure, I blog at automatizely dot com. happy to help e-Residents anytime, even has a TH-cam video about it when it was new :)
You were thinking of me today lol! I have a lot of thoughts on this matter and also have a video on this area if people want to check out my TH-cam channel. Also, I did not realize that you had Estonia e-residence which helps to know firsthand what this document gives you. One other area to cover is the digital nomad visa that Estonia is introducing right now.
Yeah. Your video is better tbh 😁
Hi sir can u help me apply e residency card for estonia
This video might help you.
if I'm a freelancer with e-residence so can I cross EU countries borders just with this card? is it possible? (in case if I am not from EU)
Actually I gained more respect for Andrew with this video. I am from Estonia and lived and worked internationally, so I speak from experience. Estonia was really a forward thinking regional leader in the 90's. But things have regressed a lot over the years. There is a lot of expensive state funded propaganda about "E-stonia", but, as Andrew noted, very little substance. It's an isolated small market country with fairly close minded village mentality, high consumer taxes, high corruption and bureaucracy. Lack of long term planning of any sort, disorganized government. Even the beloved President of yours that you mentioned was involved in so many scandals involving "milking the system" that average citizen has lost count of. The stuff was so absurd that a surreal movie could be made. And then moved out of this "advanced paradise" shortly after his term ended. Of course, making sure to re-marry like 1 month before term expiration so his 3rd wife would get state salary and leaving his farm residence to be maintained by the taxpayers. How modern and transparent, just as advertised in state propaganda! Even it's Baltic neighbors, LV and LT look much more affordable and happening comparing to EE for many years now. At least they have some flight connections unlike this swampy backwater of EE which is a challenge to get to in the first place. It's a shady place, not everything is gold that shines.
I have many ideas on this matter and would definitely agree on many ideas that you have expressed presently living here, there are many issues of this country and often just the positive aspects are the only areas that are highlighted about Estonia.
I've gotten e-Residency when it came out (2016). I've renewed it. (2018). Based upon their mission of "...with e-Residency and enjoy a truly online and hassle-free way of doing business. " I tried to register a domain. This is a Globally Simplistic IT task and takes less than 10 minutes! I used their #1 recommended "Elite Partner" domain registrar.. it is now over 24 hours later and I still do NOT have my domain. There are Waay Too Many organizations (government & private companies) that have a level of incompetence that is far too high. Read as: on-par with the Philippines 😞
@DM sigh... Try registering a *.EE domain with GoDaddy and then revise your comment
@DM didn't need company. Wanted to try out e-Residency. Wasn't a benefit for me. I'm sure it's a great solution for others though. I think the concept is Fantastic. Their "customer service" however, I sadly found lacking. All good. Not everything is a fit for everyone. But, domain registration is ridiculously simple. They botched that.
@DM yes. It was annoying and didn't scream "easy to do global business". Pretty short sighted in my experience..
Hi, can I get an online paid advice from you?
Please go to www.nomadcapitalist.com/apply/ and see how we can help.
👍🏿👍🏿👍🏿
Hello dear sir good afternon ...am from india ...am search a job in estonia ...please help me am passport holder....
E-Stonian residence
Hi
Want to get residence in Estonia how take time and total time
Total funds
Open a company in Estonia is pointless, you still to be liable of corporation tax and personal taxes in your home country.
my thoughts aswell
I guess the comparison here is about how is the corp tax in each country (EE x the country where you plan to open your company) once the resident/personal tax will be done always by the place where you live in. Correct? So maybe some advantages may apply.
Oh, btw, if you have an SEB or Swedbank account - assuming it's not frozen yet - be forewarned, be ready, they are coming for you :)
What do you mean?
@@tuiks1 it's hunting season... KYC on steroids and a bit coke. find the little guy and terrorise him, launder trillions of euros, get caught and fire your CEO with a lovely bonus.
I completely understand you man! I am from Latvia:) My wife works for Swedbank.
If I was a 7 or 8 figure capitalist, I probably wont even know what TH-cam does :)
e-residenc is big stake,,,,,i am estonian and to my is it big
tragety,,,,,,,
You tak totally liberish. You have no idea. You mix all good with all bad, and make many things up. Dont inform people, your information is not true.
Yeah I wasted 100 euros on this shit. stay away from this e residency scam.
why do you think this is a waste of money? Can you explain what was your plan and failure?
@@md.shahadathossain9610 Extremely difficult to get a bank account, high tax rates upto 33% , no physical business possible, cant do business in Estonia, No benefit in getting business visa etc
@@qamarzahid If people cannot do physical business in Estonia then why E residency? What is the purpose of the residency card?