Estonian e-residents’ companies deliver €32.5 million in tax revenue in 2021
In 2021, the companies established by the Estonian e-residents delivered €32.5 million in tax revenue, an increase of almost 90% compared with the previous year, marking a new record for the e-residency programme.
Andres Sutt (Estonian minister of entrepreneurship, information technology) says that the e-residency program has significantly expanded the scope of Estonia’s economy and enhanced the local business environment.
“The share of tax revenue from companies set up by e-residents has grown annually. Taking into consideration that many e-resident companies are still in their early stages, we can expect this trend to continue in the future,” he said.
Lauri Haav was the programme’s managing director. She said that the motivation for the e-residency applications was increasing because of the desire to start a company.
Direct revenue for the budget exceeding €90 million
“When we first launched the programme, only every fifth e-resident was interested in entrepreneurship. Today, aspiring entrepreneurs make up a third of all e-residents,” Haav said, adding that businesses set up by e-residents are also becoming more active.
In 2021, the majority of tax revenue (€13.4 million or 41% of total tax revenue) came from e-resident companies operating in the field of information and communication technology.
The Estonian e–residency program was launched in December 2014 to provide foreign nationals with secure access to digital services within Estonia’s e-governance ecosystem. Estonia has received nearly 90,000. These e-residents have created around 20,000 new businesses.
In addition to the indirect economic impact – growth among and investments into Estonian companies offering services to e-residents – the e-residency programme has generated direct revenue for the Estonian state budget in the amount exceeding €90 million, including €75 million in tax revenue.
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