The Estonian E-Residency doesn’t work
In this report, we will discover why the Estonian e-residency doesn’t work.
The Estonian e-Residency doesn’t work and we can make this claim with absolute certainty, today. The Estonian government continues to promote e-Residency as a tool to digital nomads so that they can open a company in Estonia and manage it from abroad.
The government informs you that you can live anywhere in the world and manage relationships with the Estonian administration directly online. It’s all too perfect. Unfortunately, they are lying to you on a crucial point: one, you will soon discover.
Through the e-Residency, which you order online and receive in an embassy, you can actually register your name with the Estonian administration. The blue box is really elegant and seriously makes you look cool.
As soon as you have the e-Residency box and registered with your personal key, you can then open a company in Estonia. And that’s where you encounter the problem that benefits from this crazy staging: Estonian consultants and accountants.
As soon as you tell them that you live abroad and that you are a resident outside Estonia, they make no objection to you. They welcome you with open arms and invite you to become their customers.
They open the company for you, have you fill out all the forms and eventually provide you with an Estonian VAT code (eg. EE 123456789).
Then we come to the fateful moment of opening a bank account and this is when the hammer falls. The Estonian consultant, with absolute candour, asks you if your operations are in Estonia because otherwise, it is not possible to open a current account.
You answer that your residence is outside Estonia and therefore the company’s operations cannot be within the country. On the other hand, it was evident from the outset that by not living in Estonia, the company’s operations would necessarily take place outside the country.
Yes, Estonian banks have unanimously decided not to open current accounts to companies that have no economic substance in Estonia, precluding the opening of a current account to all those digital nomads and digital entrepreneurs who would have gladly used e-Residency.
Obviously, Estonian consultants are complicit in this system. They know perfectly well that you will be left without a checking account, but first, they take you on as a client and only later put it to you as a fait accompli.
One friend of mine actually has an e-Residency and manages the company from abroad
I have no doubt that it was possible to open a current account despite being resident outside Estonia in the past. Things change, today it is no longer possible.
There would be nothing wrong, except that Estonia continues to sponsor this magical e-Residency as a tool for digital nomads to live abroad and enjoy an Estonian company.
Yet today it is no longer so because it is basically impossible to have an Estonian company + a physical checking account in Estonia if you don’t live in that country.
That’s why I can confidently state that Estonian e-residency doesn’t work.
What alternatives are there to Estonia?
We have never honestly been strenuous fans of Estonia; we have always viewed it with a touch of skepticism. At Tax Planning Internazionale, we are nostalgic traditionalists, remaining faithfully tied to the Anglo-Saxon-American world. They are the professionals and do not allow banks and governments to intrude excessively into the life of entrepreneurs.
The British and the Americans are the original protectors of business interests, the rest will always be influenced by a continental mentality of control and repression. There is a curse in Europe, it is the curse of state control and centralism. This stain will never be lifted.
Don’t ask me why it is just so!
That’s why we still prefer to rely on England and the gringos for planning.