In 2025, Estonia’s e-Residency program reached a new milestone. What started as a bold digital experiment has now clearly become a powerful economic engine.

According to the official e-Residency Estonia press release, the program generated €124.9 million in direct economic impact for the country in 2025 — an 87% increase year over year.

But beyond the headline numbers, the real question is: what does this mean for entrepreneurs and global founders?

 

Key Results from 2025

  • €125 million in direct state revenue

  • 5,556 new companies founded by e-residents (+15% YoY)

  • 13,828 new e-residents (+20% YoY)

  • Every fifth new company in Estonia is founded by an e-resident

Revenue breakdown:

  • €54.5 million — labor taxes

  • €66 million — corporate income tax (mostly dividends)

  • €4.3 million — state fees and duties

In simple terms: e-Residency is no longer a pilot project — it is a proven business model.

 

Why Entrepreneurs Choose Estonia

The continued growth of e-Residency reflects a broader global trend. In many countries, entrepreneurs face:

  • excessive bureaucracy

  • slow and costly company formation

  • complex and unpredictable tax systems

Estonia offers a clear alternative:

  • remote company formation and management

  • a transparent and stable tax framework

  • 0% corporate tax on retained and reinvested profits

  • access to an EU jurisdiction without physical relocation

It’s no coincidence that the strongest growth in applications comes from Germany, France, Italy, the United Kingdom, Ukraine, and Latin America — markets where demand for efficient and cost-effective business structures is rising rapidly.

 

The Next Major Step: Card-Free e-Residency

One of the most important developments announced is the move toward fully mobile, card-free e-Residency.

Today, the process still relies on a physical ID card and logistics. According to program estimates, transitioning to:

  • mobile-first identity verification

  • biometric authentication

  • smartphone-based onboarding

could increase company creation by at least 20% and generate an additional €3–9 million in annual tax revenue.

For entrepreneurs, this means a much faster and smoother entry point: your business setup process could soon start and finish on your phone.

 

What This Means for Business Owners Today

From a practical perspective, e-Residency has become a solid solution for:

  • international founders

  • IT and SaaS companies

  • digital agencies

  • e-commerce and service-based businesses

Estonia is not competing for residents — it is competing for companies, value creation, and long-term economic activity. And so far, that strategy is clearly working.

 

Final Thoughts

The record €125 million is not just a success story for Estonia’s state budget.
It is a strong signal to the global market: simple, digital-first, and founder-friendly systems win.

With the 2026–2029 strategy focused on speed, mobile access, and scalability, e-Residency is positioned to become even more attractive in the coming years.

 

📌 Source: e-Residency Estonia / Enterprise Estonia (EIS) press release, January 30, 2026