At e-Residency, we regularly verify key performance indicators, such as tax revenue to the state, according to an agreed-upon model, and publicly report on this twice a year. This economic impact assessment model has been endorsed by ministries and state institutions associated with e-Residency, including the e-Residency Council and the Tax and Customs Board.

The National Audit Office has also reviewed these economic impact assessment foundations in 2020 and 2023. Furthermore, in its 2020 report, the National Audit Office concluded that, according to the agreed-upon model, the program has been profitable.

The economic impact model considers taxes on labor, income tax on dividends, and state fees paid by Estonian companies established by e-residents. An e-resident's company is defined as a new Estonian company where the e-resident plays a role within a short 90-day window from its establishment.

This relatively narrow definition allows for linking e-Residency with one's motivation for operating in Estonia, as per the national agreement. Companies whose non-resident board members became e-residents after the company was already active are not included in the economic impact model.

However, the program's actual impact extends beyond the model, as e-residents also provide employment to other Estonian companies. As a result, turnover from e-residents servicing Estonian companies exceeded €11 million in 2022.

Due to data protection regulations, the e-Residency team does not have the right to view or disclose the specific companies contributing to our key performance indicators, but it cannot be claimed that this data does not exist.

In the context of performance indicators, aggregated (i.e., not linked to e-resident personal data) and industry-specific data, combined with our own conducted studies, provide sufficient information to make business decisions.

In addition to the National Audit Office, oversight authorities such as the Police and Border Guard Board (PPA), Tax and Customs Board, Financial Intelligence Unit, and Estonian Internal Security Service (ISS) can access and review e-residents' data and activities within their respective jurisdictions. There is a legislative proposal underway to provide the program team with a more comprehensive picture of e-residents' data and activities in order to further develop and manage the program.

Introducing Estonia's business environment through e-Residency

e-Residency is the world's first and largest national program that allows electronic identification and digital signing, along with the creation and management of Estonian companies for foreign citizens. Company formation is voluntary, and obtaining e-Residency does not entail an obligation to establish a company. e-Residency also does not require mandatory tax residency.

The e-Residency program is based on a nearly complete digital state service platform, unique in the world and belonging to the European Economic Area, with the highest quality level of digital identification documents in the EU.

Unlike other global business environments, 99 percent of public services in Estonia are available online, democratizing access to entrepreneurship and making it independent of location. This unique business environment is Estonia's competitive advantage not only in Europe but worldwide.

Getting access to our business-friendly environment and digital services, including the unique ecosystem of service providers and communities developed around e-Residency, is among the main reasons for establishing a company in Estonia. Proof of this is that nearly one in five new companies and every third startup in Estonia are established or co-established by e-residents.

In addition to the aforementioned tax revenue, e-Residency's digital identity provides Estonia with greater security compared to all other non-resident entrepreneurs entering the country through other means - notarially or by purchasing or creating a company through another intermediary.

Marketing activities and plans are evaluated

The e-Residency program operates on two levels: oversight of the program is handled by relevant government agencies (as it deals with personal data), and the strategic product, business development, and marketing of the program are managed by the e-Residency team.

The business development decisions of the program team are based on data collected by oversight authorities, agreed upon and made accessible to the extent permitted, as well as in-depth studies and analyses conducted by us.

For example, we conduct regular user and market surveys on entrepreneurship services and legislation in key target countries. Additionally, we rely on awareness studies in target countries, comparisons of business environments, regular qualitative and quantitative surveys of e-residents and potential e-residents, and various business segments.

The process of selecting partners is transparent and cross-border according to the Public Procurement Act, to involve the highest quality analytical capabilities.

We have identified both the fastest growing markets (Germany, Spain, the United Kingdom, and Ukraine) and customer segments for the program. The latter includes startups – Estonia's tax system and existing startup community are strong motivators – micro-enterprises, and small and medium-sized enterprises.

All three segments benefit from e-Residency if their main activity is cross-border and related to digital services and products. In 2022, the e-Residency team presented the government with a continuation strategy for the years 2022-2025, in which planned e-Residency sales and marketing strategies are aligned with the needs and motivators of customer segments.

To measure the effectiveness and objectives of sales and marketing activities and campaigns, we conduct awareness and customer satisfaction surveys in target countries and quarterly aggregated data analysis.

Marketing, especially analytics-driven digital marketing, can be assessed relatively successfully. It is a predictable activity with expected metrics. All companies work with such forecasts.

For example, it is possible to measure that, as a result of marketing activities, there has been a significant increase in e-resident applications, website visits, newsletter subscribers, and social media followers. Even if each new application cannot be associated with a specific campaign in analytics, the indirect impact of general awareness-raising activities on application activity is noticeable, including through increased organic internet searches.

The main goal of the e-Residency program is to grow the Estonian economy. e-Residency is an export product that directly benefits Estonia's economy and has established Estonia as an innovative digital state for nearly a decade.

Like any product, e-Residency requires investment and continuous development to meet market demand. It also requires marketing to reach desired customers who would become e-residents, establish active companies in Estonia, and hopefully thrive, thereby making Estonia's business-friendly environment stronger thanks to its progeny.

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