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E-residency is an innovative digital residency program pioneered by Estonia in 2014, designed to allow non-residents to establish and manage a business online in Estonia without physically being in the country. This concept has since been adopted by a few other nations like Palau, Lithuania, to an extent Honduras, and soon by Ukraine, recognising the growing importance of digital and globalised business operations.
In this lesson, I’m going to mostly focus on Estonia, which was the first and is still the global gold standard of e-residency programs.
E-residency provides a government-issued digital identity and status that allows entrepreneurs to register an EU-based company and manage it entirely online. This includes accessing Estonian banking, payment processing, and other business services. E-residents can digitally sign documents, file taxes, and manage their business from anywhere in the world. However, it's important to note that e-residency does not grant physical residency, citizenship, or the right to enter Estonia or the EU.
One of the biggest advantages of e-residency is the ability to start and run a business remotely. Entrepreneurs can manage their companies from anywhere in the world without needing to travel to Estonia. E-residents can establish a company within the EU, providing access to the European single market, which is particularly beneficial for small businesses and individuals looking to operate within the EU. Estonia’s digital infrastructure offers e-residents access to a wide range of online services, including banking, payment processing, and legal services, streamlining business operations and reducing the need for physical paperwork.
E-residency is reasonably affordable, and can help you diversify assets abroad, create backup bank accounts, and buy and hold assets in a region of the world you didn’t previously have access to.
Lastly, you don’t physically need to travel to Estonia to set up e-residency. The entire process can be done online. Only the last step of the process (collecting your ID and e-residency kit) requires physically travelling to Estonia or an Estonian embassy/consulate somewhere around the world.
There are, of course, limitations. E-residency does not grant the right to live, work, or travel to Estonia or the EU, as it is purely a digital identity for business purposes, which may limit its appeal for those looking for physical relocation options. While e-residency provides access to banking services, opening a business bank account can still be challenging for non-EU citizens, as some banks require a physical presence or additional verification processes. However, most modern “digital” banks like Wise and Revolut are readily available.
As mentioned before, Estonia isn’t the only e-residency program available today. Palau has an active program (but not as comprehensive as Estonia), as do Portugal, Lithuania, and Próspera in Honduras. The micronation of Liberland also has an e-residency program, though as Liberland isn’t internationally recognised as a nation (yet), it doesn’t have much validity or use at this stage.
One e-residency is something I believe all Anticitizens should aim to achieve. It can be an important part of your backup plan arsenal, even if one won’t necessarily grant you any travel or movement benefits.
In the next lesson, we’re going to talk about one of the most important pieces of knowledge in lowering your global tax rate, which is tax residency.