New Milestone for e-Residency with Record Number of Companies Founded in 2024

  • 2025-02-04

In 2024, E-residents founded a record-breaking 4,818 new Estonian companies, highlighting the growing global appeal of the country’s digital business environment. In addition, the national treasury collected a total of €66.8 million from e-residents and their companies as income tax  and state fees related to digital ID applications and company registration.

According to Erkki Keldo, Estonia’s Minister of Economy and Industry, continued investment in the e-Residency programme is essential for unlocking its full potential in driving economic growth. "The return on investment is already at least 8 euros per every euro spent. Over the past decade, the
e-Residency programme has cemented Estonia’s international reputation as a trailblazing digital nation. To sustain this momentum and attract even more e-resident companies, we must further strengthen our competitive advantage as the best business environment in Europe,' declared Keldo.

In 2024, Estonia welcomed altogether 11,484 new e-residents, a 5% increase compared to 2023. What is more, e-residents established a record-breaking 4,818 companies – an average of 400 companies per month. This figure is also up 5% from the previous year, surpassing the previous record of 4,712 companies founded in 2021. The majority of new companies were established by citizens of Spain (711)Ukraine (387)Turkey (305) and Germany (299), with nationals of those countries also topping the rankings of new e-residents joining the programme. 

In 2024, Estonia’s e-Residency programme marked its 10th anniversary, celebrating a decade of growth and innovation. According to the programme’s Managing Director, Liina Vahtras, there were many positive developments. "As increasing numbers of entrepreneurs continue to find their way to Estonia, it is clear that our strategic sales efforts are paying off. Last year, e-residents founded one in five of all new companies established in Estonia – more than ever before. However, in addition to quantity, we must also focus on quality by fostering their long-term growth in Estonia. This will ensure that their contribution to the Estonian economy via taxes will also continue on the upward trend," explained Vahtras.

To drive the programme’s continued evolution, the e-Residency team is putting finishing touches on its new strategy for 2026-2029, set to be unveiled later this year. "Our primary goal is to attract
e-residents who already have established businesses and are ready to hire employees in Estonia. To that end, we are exploring ways to further streamline the company formation process, making it even faster and more convenient. Key initiatives include developing a cardless solution and expanding the range of business services offered to e-residents,” Vahtras stated.

As a positive example, Vahtras highlights PRNEWS, a content marketing platform founded by an Estonian e-resident from Ukraine. The company currently has a staff of 21 at its headquarters in Estonia, and employs altogether 58 people in six countries, including Ukraine, Armenia, Poland, Belgium and the United States. In 2024, the company's turnover increased by 30%, reaching €5.2 million, growing three times faster than the market average. As a result, PRNEWS contributed more than €375,000 in labour taxes to the Estonian treasury in 2024. Considering their ambitious plans for recruitment and salary increases, the company estimates that its labour tax contributions to Estonia should increase by 50% in 2025.

According to Alexander Storozhuk, founder and board member of PRNEWS, Estonia’s e-Residency programme allowed him to set up a company in one of the world’s most transparent business-friendly environments. Today, Estonia serves as the company’s headquarters, attracting top talent from around the world. “We are proud that our online platform is used in 109 countries, further reinforcing Estonian’s global image as a pioneering digital nation," noted Storozhuk.

In 2024, e-resident companies contributed a total of €63.6 million in tax revenue to the Estonian national treasury: €45 million euros – 71% of total tax receipts – came from labour taxes, while the remaining 29%, amounting to €18 million, was accrued from income tax, primarily on dividends.

At the same time, Estonia’s total public expenditure related to the e-Residency programme stood at €7.5 million.

 

 

Estonia launched the world’s first e-Residency programme at the end of 2014, with the aim of providing foreign nationals safe access to its public e-services. Since then, more than 121,600 people from 185 countries have been granted e-resident status (excluding revoked cases). Currently, there are more than 59,500 digital ID cards in active use. 

Over the years, e-residents have established more than 33,800 companies in Estonia, contributing significantly to the country’s economy. To date, the programme has generated over 274 million euros in direct revenue for Estonia, in the form of tax revenue and state fees. In addition to financial gains, e-Residency also delivers indirect benefits by enhancing Estonia’s global reputation, as well as driving growth and investment in local businesses that provide services to e-residents.

The economic impact of the e-Residency programme is calculated using a government-approved model which factors in labour taxes paid by e-resident companies, along with the special income tax, primarily on dividends and other profit distributions. For the purposes of this model, e-resident companies are those that have either been founded by an e-resident or where the e-resident’s role has been created within 90 days of the company’s formation. In all such cases, the e-resident status of a foreign citizen must be acquired prior to the company’s establishment.

 

For more information about Estonian e-Residency and related statistics, please visit the programme’s official website: https://www.e-resident.gov.ee