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Hi Alvian,
Thank you for your comment. Contrary to its name, e-residency does not imply tax residency or the concept of "e-tax
residence." Just the company is based there, not the person.
โข The corporate tax rate in Estonia is 20%. Remote business operations can benefit from the country's a 0% tax rate, but only if you have someone representing you like a lawyer, notary, trust company or advocate. The Estonian government requires foreign-based management boards to designate a contact person with specific eligible categories in Estonia. That's expensive.
โข While you may not pay taxes personally in Estonia, your e-resident Estonian company has a range of tax obligations.
โฆ Standard Corporate Income taxes (20%!) declared where the company is registered and/or has a permanent establishment, or both (although there may be double-taxation offsets in play).
โฆ Dividend distribution tax (20%!!) โ paid in Estonia on dividends, when you pay yourself from your business in this way
Feel free to share how you circumvent the dividend tax of 20% in the long run?
I donโt see a benefit here compared to Bulgaria. Estonia 20% & 20% (36% tax pressure, Bulgaria 10% and 5% (14% tax. Just the dividends (like if you pay don't pay income taxes) are 4 times higher (5%
v.s. 20%) than Bulgaria.
What I do like of the e-residency in Estonia is that it is well arranged, smooth and mainly online.
What do others think of the e-residency in
#estonia? Feel free to share your tips! Let me know if you like the Estonia e-residency.