Estonia strengthens business relations with Latin America through e-Residency

Estonia recently took important steps towards developing business relations in Latin America by organising a visit to the region under the auspices of the e-Residency programme to introduce Estonia's e-governance and business environment, as well as by expanding the availability of e-Residency in fast-growing economies in cooperation with its Police and Border Guard Board.

During a business development programme held in late April and early May in Brazil, Argentina, Uruguay, Chile, and Mexico, representatives from the e-Residency programme introduced the benefits of setting up a business digitally in Estonia at a number of technology and startup events. In Brazil, the focus was also on visa and job opportunities for foreign talent: in Rio de Janeiro, Estonia was introduced at the prestigious Web Summit, and in São Paulo, Kaarel Kotkas, CEO of Veriff, and Enio Almeida, head of Wise's Brazilian branch, participated in discussions and shared their experiences related to Estonian startup culture and growing a global business.

According to Sandra Särav-Tammus, deputy undersecretary for economic affairs and innovation at the Estonian Ministry of Economic Affairs and Communications, this was an important step in expanding Estonia's economic presence in the region, as Estonia has no embassies or consulates in Latin America. "Estonia's e-Residency and startup ecosystem is an attractive and convenient way for local entrepreneurs and talent to look across the ocean to Europe, helping them to more easily attract investment and alleviate the talent shortage in our tech companies. We need to more actively promote the strengths of our business-friendly e-governance, as it allows us to make our economy and diplomatic network bigger," said the vice-chancellor.

The visit was accompanied by the introduction of new e-Residency card issuance options in South America. According to Liina Vahtras, head of the e-Residency Programme, the decision to expand came in response to the growing demand in the region for flexible and bureaucracy-free access to the European market, which e-Residency provides through offering e-residents the opportunity to establish an Estonian company. 

"The closest point of issuance in the region so far has been the Estonian Embassy in Washington, which has been issuing e-Residency cards in Mexico with the help of consuls when needed. Now, e-Residency cards can also be sent to São Paulo and Buenos Aires a few times a year through an issuance process managed by the Police and Border Guard Board," Vahtras said. "Brazil, Argentina, Mexico, Chile, and Uruguay have seen a 23-percent increase in new applications in the first four months of this year, and a 45-percent increase in business creation by these countries," Vahtras said. "This is potentially a very strong growth region for us."

Vahtras also considers the launch of business development activities in Latin America to have been a success. "We made contact with 21 potential partners in five countries and six cities to expand our sales network, and met 32 startup and growth companies interested in setting up a business in Estonia," she said. "It was also a great pleasure to see that there was a great interest in the visit from local media outlets -- Estonia and e-Residency opportunities have been covered in more than 50 articles in Brazil, Argentina, and Mexico in recent weeks," she added.

According to Kristi Veskus, head of the foreign talent department and Work in Estonia Programme at the Estonian Entrepreneurship and Innovation Foundation (EIS), Estonian companies value the hard work of Brazilian talent, which accounts for a fifth of the workforce in its startup sector. 

"Mutual adaptation is made easy by a very similar understanding of work culture, as proven by the experience of 900 Brazilian talents who are already successfully living and working in Estonia," Veskus said. "In Estonia, they appreciate the safe and stable living environment and good career prospects," she said. "There will be a shortage of around 7,000 ICT workers in the coming years, both in terms of new recruitment from the education system and migration. Estonian university graduates cover only a third of the manufacturing industry's need for future managers and specialists, so it is very important to support companies in attracting foreign talent," remarked Veskus.

In turn, recruiting foreign talent to startups here from outside the European Union has been made easier by the Estonian startup visa. "This is an important initiative not only for employers, but also for foreign investors, as Estonia is one of the best places to run a startup comfortably and to focus on innovation instead of bureaucracy," said Mirjam Kert, head of startup visa and external relations development at EIS. "Latin America is undoubtedly an interesting and promising market for the startup visa, and our aim is to create a bridge between our startup ecosystems," Kert added. 

According to Merike Aspe-Kangro, the project manager of the Identity and Status Bureau of the Estonian Police and Border Guard Board (PPA), interest in the new mobile issuing points is high and new e-Residency applications are being received daily. During the issuance on 16 and 17 April, 46 new e-residents received their digital IDs from her in São Paulo and she distributed another 39 cards to e-residents in Buenos Aires on 14 and 15 May. 

"Organising the distribution has been a very exciting and innovative process and has given us the knowledge and the feeling that we are creating something completely new and unique," she said. "The delivery went smoothly and the clients were positively surprised that it was so quick and convenient to receive an e-Residency card. We basically delivered the card to their homes. As the countries are very different, we gain new experiences with each successful distribution," she remarked.

In cooperation with the PPA, a new issuance point has also been opened in Bangkok, Thailand, where more than 50 e-residents' digital IDs are already expected to be issued in June. New issuance shipments to both Latin America and Bangkok are expected this autumn.

Over the years, more than 1,410 citizens from Brazil, 636 from Argentina, 464 from Mexico, 196 from Chile and 56 from Uruguay have joined the e-Residency programme. With the help of e-Residency, they have set up 412, 210, 130, 59 and 15 companies, respectively.

The e-Residency programme was created at the end of 2014 with the aim of providing the citizens of foreign countries with access to Estonian state's digital services. Over time, more than 125,300 people (including those who later had their status revoked later) from 185 countries have become e-residents.

In 2024, e-residents founded 4,818 new Estonian companies, or an average of 400 new companies per month, which was more than ever before. E-resident startups account for one in five new Estonian businesses per year, and 38 percent of Estonian startups are linked to e-residents. In total, e-residents have founded more than 35,500 Estonian companies over time. In 2024, e-residents and their companies contributed a total of €66.8 million in income tax on labour and dividends, as well as state fees for applying for an Estonian digital ID and setting up a company.