Estonia’s e-Residency programme generated €68 million in direct income for the state in the first six months of 2025, nearly double initial projections and almost matching the total contribution for 2024, which was €66.8 million.

Program Director Liina Vahtras described the results as “overwhelmingly positive,” adding:

“These strong results give us every reason to expect further growth in tax revenues in the second half of the year, raising the programme’s annual contribution by at least a third.”

Income mainly came from taxes, with €26.2 million from labour taxes and €39.7 million from dividend taxes, alongside €2.1 million in state fees for applications and company registrations.

Estonia’s Minister of Economic Affairs and Industry, Erkki Keldo, noted the country’s business environment as a factor in the programme’s performance.

“Estonia’s simple and flexible tax and business environment, together with world-class digital services, make it easier for entrepreneurs to start and grow companies here without unnecessary bureaucracy. The results show we are on the right track in bringing more capital and innovative businesses to Estonia,”

he said.

The strong start to 2025 was partly influenced by a surge in dividend declarations ahead of a slight tax increase in January and February.

Vahtras added that revenues have remained higher in the months following, indicating that “e-resident companies are resilient and continue to grow, with enough of a buffer to handle unexpected changes.”

The programme continues to expand. Between January and June, Estonia received 7,994 new applications, a 23% increase on the same period in 2024.

E-residents created 2,634 new companies, an 8% rise.

Growth was particularly strong in France and Italy, with applications increasing by 50–80%, while Germany, the United Kingdom, and Latin America remain consistent sources of interest.

E-residents also use local services, contributing to the economy.

A 2024 study found that they generated €15.5 million in revenue for service providers such as accountants, lawyers, and virtual office companies, a 36% increase from 2023.

Since 2014, more than 128,000 people from 185 countries have joined the programme, establishing over 36,000 companies and generating €342 million in direct economic impact.

Estonia plans to introduce a card-free version of the digital ID by 2027 to simplify the programme further.

Featured image credit: Edited by Fintech News Baltic, based on image by inguskruklitis via Freepik