E-residency program earns state €41 million since launch
Estonia's e-residency program has earned the state €41 million, €31 million of which is direct tax revenue since it launched in 2014.
Ott Vatter, director of the e-residency program, said the growth in tax revenue collected from e-residents' businesses is the most prominent example of the program's positive effect on the Estonian economy. So far, e-residents have created over 13,000 businesses in Estonia
"Compared with the first quarter of last year, tax payments by e-residents businesses to the state budget grew 51 percent during the same period this year, and now total over €1.3 million each month," Vatter said.
The focus of the program has shifted from rapid growth in the number of e-residents to encouraging them to establish strong businesses in various economic sectors to foster their growing tax payment in Estonia.
Businesses founded by Estonia's e-residents have earned the state close to €31 million in tax revenue since the program's launch.
A recent poll by Norstat shows the program's effects on the Estonian economy are also appreciated by local residents. Of the respondents questioned, 63 percent said they think e-residents' tax payments to the state budget are important and 62 percent think the additional jobs created by the scheme are important.
"People are increasingly applying for e-residency for the purpose of starting a business here, therefore, e-resident entrepreneurs' demand for services, from accounting to legal advice, is also growing. The growth and development of Estonian businesses servicing e-residents is a good example of the program's indirect impact on the Estonian economy. We were also pleased to learn that the awareness of Estonian people of the indirect effects of the program is on the rise," Vatter said.
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Editor: Helen Wright