August 1, 2020
Effectiveness of the e-Residency program
National Audit Office of Estonia report anno domini 2020.
Do the revenues of the e-Residency program exceed the expenses, and are the participants in the program law-abiding?
What did we audit?
In the audit, the National Audit Office assessed whether the e-Residency program encourages the e-Resident companies to bring income to Estonia:
- control systems ensure that the participants in the e-Residency program are law-abiding;
- sufficient platforms for business and services have been created for e-Residents, and
- whether the major risks involved in the implementation of the e- Residency program have been mitigated.
Why is this important to taxpayers?
During the first five years of the e-Residency program (2014–2019), Estonia has granted e-Residency digital ID cards to more than 63,000 foreigners from 174 countries. Digital ID allows e-Residents to use the public e-services of both Estonia and other EU countries and create an Estonian company. It is important that the e-Residents using the e-services and pursuing commercial activities be law-abiding and that they bring income to Estonia. It is also essential that the risks involved in the implementation of the program are mitigated.
In the first five years, 15.7 million euros have been spent on the e- Residency program.
What did we find and conclude from the results of the audit?
According to the National Audit Office, the revenues of the e- Residency program have started to exceed the expenses by the end of the first five years of operation. However, control systems are deficient because foreigners with a valid criminal penalty and business ban can participate in the program.
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