According to Estonian tax law, e-residents are considered non-residents for tax purposes. This means that only income earned in Estonia is taxed in Estonia. If there is no Estonian-sourced income or activity, you must pay taxes in the country where the service is provided or the income is earned. E-Residency alone does not create tax residency—neither in Estonia nor elsewhere.

An Estonian company established by an e-resident is automatically considered an Estonian tax resident company, and subject to Estonian corporate tax rules. However, the personal tax residency of the e-resident does not change simply because they hold an e-Residency card.

It’s a common misconception that e-Residency provides residency or tax residency status—it does not. E-Residency is a digital identity, not a visa, residence permit, or travel document. It allows you to manage a company remotely, but it has no impact on where you pay personal taxes.

Keep in mind:

• Your personal tax residency is determined by factors such as physical presence (e.g. more than 183 days in a country) and centre of economic or personal interests.

• Your personal tax residency may also trigger permanent establishment rules, which could lead to tax obligations for your Estonian company in your country of residence.

Lead-in:
E-Residency gives you access to Estonia’s digital business environment—but it has no effect on your personal or corporate tax residency, which are determined by entirely separate legal criteria.