e-Residency reports close to 40 million euros in state revenue
During the first half of 2023, companies owned by Estonian e-residents delivered 37,7 million euros in tax revenue, amounting to a 57% increase compared to the previous year. To date, the e-Residency programme has generated altogether 183 million euros in economic impact for Estonia.
The majority of tax receipts – 55% or 20.6 million euros – came from labour taxes paid by e-resident companies registered in Estonia. The remaining 45% – 17.1 million euros – was collected from special case income tax, mainly dividends. In addition to taxes, e-residents also paid 1.4 million euros in state fees, raising the programme’s economic impact to 39.1 million euros for the first six months of 2023.
According to Tiit Riisalo, the Estonian Minister of Economic Affairs and Information Technology, the e-Residency programme continues on a strong course, confirming that the rest of the world has a keen interest in the IT solutions Estonia has to offer. "For an increasing number of foreign entrepreneurs, e-Residency is a convenient way to conduct business in the European Union, providing a digital solution for safe and transparent operation, with low administrative cost. Although the maintenance and development of national IT systems is costly, in the case of e-Residency our return on investment is considerably higher. For every euro that Estonia spends on e-Residency, the programme generates 7.6 euros in return," explained Riisalo, adding that, for Estonia, e-Residency is not only a revenue machine marketed to foreigners, but a public e-service that also benefits a large number of local Estonian companies, service providers and entrepreneurs, delivering an additional boost to the national economy.
