GoFully digital
Formation and administration run entirely online — with e-Residency no trip to Estonia is needed.
Company formation
Company Formation in Estonia
Estonia enables fully digital formation and management of companies, notably via the e-Residency programme. Reinvested profits remain tax-free; corporate tax is only due upon distribution. Legal status: 2026, without guarantee.
0 % on reinvested profits100 % digitalalso possible without e-Residency
Key figures
Estonia at a glance
0 %
Tax on reinvested profits
22 %
CIT on distributions (22/78)
~ minutes
Online formation via e-Business Register
135.000+
e-Residents since 2014 (185 countries)
Advantages
What speaks for Estonia
Reinvestment-friendly
0 % tax as long as profits stay in the company; taxation only upon distribution.
Lean administration
Digital accounting and public services; accounting services from ~€100/month.
Tax comparison
Example: €100,000 profit
| Germany | Estonia | |
|---|---|---|
| Corporate tax | ~30 % (effective) | 0 % reinvested / 22 % on distribution |
| Tax on €100,000 profit (reinvested) | ~€30,000 | €0 |
| Special feature | taxation regardless of distribution | taxation only upon distribution (22/78) |
The former reduced rate (14 %) for regular distributions was abolished in 2025.
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Liability | Typical use |
|---|---|---|---|
| OÜ (Osaühing) | €2,500 (deferrable) | limited | Standard, digital/remote |
| AS (public limited) | €25,000 | limited | Fundraising |
| Sole trader (FIE) | none | unlimited | Entry level |
| Branch | — | parent liable | Market entry |
Process
How incorporation works
Apply for e-Residency
Collect the card at the embassy (lead time of a few weeks).
Form the OÜ online
Via the e-Business Register — done in minutes.
Tax number, VAT if needed
Tax registration.
Banking
Wise/Revolut or an Estonian bank.
Accounting service
Appoint a digital accountant.
Annual report
File within 6 months of financial year end.
The actual online formation takes minutes; the lead time comes from the e-Residency card.
Alternative without e-Residency
Alternative: fiduciary formation without e-Residency
On request we can also arrange the formation entirely without an e-Residency card: the OÜ is founded on your behalf in trust and then transferred to you – no visits to authorities and no waiting for the card.
Forms & data
You fill in the forms and provide the required data.
Fiduciary formation
The OÜ is founded in trust on your behalf.
Power of attorney & share transfer
The company shares are transferred to you by power of attorney.
Managing director
A managing director is appointed for the company.
Duration: 2–3 weeks. Special feature: on request, the formation and corporate structure work with full discretion – without public naming of the shareholders, where discretion is intended. Statutory reporting and transparency obligations (e.g. beneficial owners) remain unaffected.
Costs
Costs (indicative)
Online formation from €265, e-Residency €120, accounting service ~€100–300/month (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Reinvested profits | 0 % |
| Corporate tax on distributions | 22 % (22/78, since 2025) |
| VAT registration duty | from €40,000 annual revenue |
The former reduced 14 % rate for regular distributions was abolished in 2025. According to e-Residency, no changes are planned for 2026/2027.
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
Tax on reinvested profits?
Show answer
0 %.
Distribution tax 2026?
Show answer
22 % (22/78).
Standard legal form?
Show answer
OÜ (Osaühing).
Location in numbers
Estonia in numbers
| Metric | Value |
|---|---|
| New e-Residency companies 2025 | 5,556 (record, +15 %) |
| e-Residents since 2014 | >135,000 from 185 countries |
| Companies held by e-Residents | >39,000 |
| Tax revenue from e-Resident firms 2025 | ~€125 m |
Latest developments
Latest developments (as of July 2026)
- Corporate tax at 22 % (22/78) since 2025; the 14 % reduction was abolished.
- Record e-Residency company formations in 2025 (+15 %).
- No further tax changes planned for 2026/27 (per e-Residency).
FAQ
Frequently asked questions about Estonia
Do I have to travel to Estonia?
No – either digitally with e-Residency or in trust via GoGlobal, entirely without e-Residency (2–3 weeks).
How high is the tax?
0 % on reinvested profits, 22 % on distributions.
What does formation cost?
From €265 online, plus €120 e-Residency.
Biggest drawback?
A business account with an Estonian bank; often solved via Wise/Revolut.
Related countries
These locations might also interest you
Company formation
Cyprus
15 % corporate taxNon-dom: 0 % SDC on dividends
Country guide
Company formation
Ireland
CIT 12.5 %Ltd without minimum capital
Country guide
Company formation
Netherlands
CIT 19 % up to €200,000BV from €0.01
Country guide
Sources & disclaimer
Sources
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
Questions about this location? Get in touch – no obligation, no sales pressure.