If you’re building a SaaS company or working remotely, Estonia is one of the smartest and most forward-thinking places to register your business. Through its groundbreaking e-Residency program, Estonia offers global founders a streamlined, digital-first way to run a company with full access to the European market.
What is e-Residency?
E-Residency is a digital identity program launched by the government of Estonia in 2014. It allows non-Estonians from anywhere in the world to become virtual residents of Estonia without having to live or travel there physically.
Through e-Residency, individuals gain access to Estonia’s secure digital infrastructure and can:
- Establish and manage an EU-based company entirely online
- Digitally sign documents and contracts
- Encrypt and transmit documents securely
- Access Estonian e-services (such as banking, taxation, and business management)
It is particularly attractive for digital nomads, freelancers, startups, and entrepreneurs looking to run a location-independent business in the European Union.
Importantly, e-Residency does not grant citizenship, tax residency, or the right to physically reside in Estonia or the EU. It is a digital identity, not an immigration status.
As of May 2025, Estonia’s e-Residency program has attracted over 125,000 individuals who have established more than 35,500 companies . In April alone, 1,111 new applications were submitted, and 457 new businesses were launched by e-Residents. Since its inception, the program has generated over €244 million in economic impact, including €31 million contributed directly to the state budget in the first half of 2024
0% Corporate Tax on Profits You Reinvest
Estonia’s corporate tax system is designed to encourage reinvestment and growth. Unlike many countries, you won’t be taxed on your company’s profits as long as you keep them in the business. This means you can use your earnings to expand your product, hire more staff, or invest in marketing without worrying about immediate tax liabilities.
Example:
Imagine your SaaS company earns €100,000 in profit this year. Instead of paying corporate tax right away, you decide to reinvest all €100,000 back into your business—whether that’s for development, marketing, or hiring new employees. In Estonia, you pay 0% corporate tax on these reinvested profits. You only pay tax when you distribute profits as dividends.
This system gives you more flexibility to grow your company faster by keeping your capital working within the business instead of paying taxes upfront.
Fully Remote Company Setup via e-Residency
Thanks to Estonia’s innovative e-Residency program, you can incorporate and manage a company entirely online, without ever setting foot in Estonia. This remote setup makes it incredibly easy for founders around the world to establish an EU-based business with minimal hassle and full legal compliance.
You apply online for e-Residency, receive a secure digital ID card by mail, and then can open a company, manage banking, sign documents digitally, and file taxes—all from anywhere in the world.
How to Apply for Estonia e-Residency: Step-by-Step Checklist
- Visit the official e-Residency website
Go to e-resident.gov.ee to start your application or contact authorised service provider Comistar.ee to ask for details. - Complete the online application form
Fill in your personal details, upload a scanned copy of your valid passport, and provide a motivation statement explaining why you want to become an e-resident. - Pay the application fee
The fee is typically around €100–120, payable online via credit card. - Wait for the background check
The Estonian Police and Border Guard Board will conduct a security check, which usually takes 2 to 6 weeks. - Pick up your e-Residency digital ID card
Once approved, you’ll receive an email notification to collect your card from your selected pickup location (usually an Estonian embassy, consulate, or partner location near you). - Activate your digital ID card
Follow the instructions to set up your card reader and activate your digital identity. - Register your company online
Use your e-Residency digital ID to open an Estonian company via the Estonian Business Register portal — no need to visit Estonia in person. - Open a business bank account or fintech account
Choose a bank or payment provider compatible with Estonian companies, such as Wise, Payoneer, or traditional Estonian banks. - Start running your business remotely
Manage contracts, invoices, taxes, and banking securely online.
This simple digital-first process allows SaaS founders worldwide to access the benefits of an EU company without geographic or bureaucratic barriers.
Access to EU Banking, Stripe, and PayPal
One of the biggest advantages of starting a company through Estonia’s e-Residency program is streamlined access to the European financial ecosystem. This includes the ability to open EU-based business bank accounts and integrate with global payment processors such as Stripe, PayPal, and other fintech platforms.
These services are essential for handling international transactions — particularly for online businesses, freelancers, SaaS companies, and startups that operate across borders. With an Estonian company, you can invoice customers in multiple currencies, receive payments globally, and manage finances through reliable European banking systems.
Moreover, EU-based companies are often prioritized by platforms like Stripe, which may limit or restrict access in other regions due to regulatory or risk concerns. Being legally based in the EU gives your business greater credibility and compliance, helping you avoid unnecessary delays or account limitations.
In addition, payment processing fees are generally lower for companies operating within the EU compared to many non-EU jurisdictions. This can significantly reduce overhead costs for businesses with recurring payments or high transaction volumes — such as subscription-based services or e-commerce.
By leveraging these financial tools through your Estonian company, you ensure faster settlement times, greater trust from partners and clients, and professional infrastructure that supports sustainable growth on a global scale.
Low Accounting and Admin Costs
Estonia’s digital-first infrastructure greatly simplifies running a company and helps reduce the costs of accounting and administration. Automated bookkeeping, online tax filing, and digital signatures allow you to manage your business efficiently from anywhere in the world. This saves you valuable time and money that you can reinvest into developing your product.
Many service providers offer packages tailored specifically for startups and SaaS businesses, letting you outsource routine tasks to professionals. This way, you don’t have to worry about compliance or paperwork and can focus on what matters most — growing your business.
In addition to accounting platforms, many SaaS founders also rely on survey tools that integrate with Salesforce to streamline customer feedback collection and CRM management. These integrations ensure that data from user surveys flows directly into your Salesforce dashboards, making it easier to analyze customer insights and drive informed decisions without switching tools.
Popular accounting software and services used by Estonian e-residents include:
- Xolo — an all-in-one platform designed for e-residents and freelancers, offering bookkeeping, invoicing, tax reporting, and company management in a simple dashboard.
- LeapIN (now part of Xolo) — known for user-friendly interfaces and support tailored to digital entrepreneurs and startups.
- 1Office — provides full-service company registration, accounting, legal, and HR support, ideal for SaaS companies wanting a hands-off approach.
- Companio — offers easy company management with bookkeeping and reporting services, especially popular among small businesses and freelancers.
- SimplBooks — Estonian cloud-based accounting software for those who want to manage bookkeeping in-house with an easy-to-use interface.
Using these digital tools and services, you can automate much of your accounting workflow, ensuring compliance with Estonian law without heavy administrative overhead. This streamlined approach means lower costs, fewer errors, and more time to focus on building your SaaS product.
Clean Legal Structure Under EU Law
Incorporating in Estonia means your company operates under clear and well-regulated EU business laws. This transparency enhances credibility with customers and investors, while providing strong legal protections and straightforward compliance requirements.
This legal clarity reduces risks and helps when you seek funding or partnerships within the EU market.
Trademark Registration Made Easy with Support from the SME Fund 2025
Protecting your brand is vital for any SaaS business, and Estonia makes trademark registration both simple and affordable. You can apply online directly through the Estonian Patent Office, securing legal protection for your company name, logo, and brand identity across the entire European Union.
What’s more, Estonia offers financial support through the SME Fund 2025, which can cover up to 75% of the costs associated with trademark and design registration. This grant significantly reduces the financial burden for startups and growing companies, making it much easier to safeguard your intellectual property while focusing on developing and scaling your SaaS product.
For example, the standard state fee for trademark registration in Estonia is 850 EUR. With the SME Fund grant covering up to 75%, you only need to pay around 212.50 EUR out of pocket. This is a huge saving that can free up resources to invest in product development, marketing, or hiring.
Applying for trademark protection with this grant support ensures your brand stays uniquely yours and well-protected in the competitive European market. If you want to build a SaaS company with strong European credentials, lower taxes, and flexible remote management, Estonia’s e-Residency program and its supportive ecosystem are definitely worth considering.
Conclusion: Why Estonia Is a Great Choice for SaaS Founders
Estonia’s e-Residency program is a smart solution for anyone building a SaaS company or working online. It lets you start and run a European business fully online, from anywhere in the world. You can sign documents, manage banking, pay taxes, and grow your company — all without needing to live in Estonia.
With 0% tax on profits you reinvest, access to Stripe and PayPal, and easy digital tools for accounting and legal work, Estonia makes running a business simple and cost-effective.
If you want to build a global business with less hassle and more freedom, Estonia is a great place to start.
