Estonian e-Residency 2025: updates and what they mean for you

As we approach 2025, the Estonian government is implementing some changes designed to enhance security, streamline the process, and keep pace with a constantly evolving digital landscape. Let's explore what's in store and how it might affect you, whether you're a current or an aspiring e-resident.

A focus on security and streamlining

State fee increase

Starting in 2025, the state fee for e-Residency applications and renewals will increase to €150. This means that if you're planning to apply for e-Residency or renew your card, it's advisable to do so before the end of 2024 to secure the current lower fee. 

Currently, the state fee for applying for an e-⁠Residency digital ID varies based on the chosen pickup location. If you pick up your card in Estonia, the fee is €100. If you choose to pick it up at an Estonian embassy, the fee is €120. 

Application restrictions

To maintain the security and integrity of the e-Residency program, the Estonian government has imposed restrictions on new applications from specific countries. In total, the list comprises 32 countries or territories with a separate ban for Russia and Belarus. This means that your application may be subject to more thorough review to verify your identity and intentions. If you're considering applying for e-Residency, it's advisable to consult with an expert or directly with the Estonian authorities to get the most accurate and up-to-date information. Down below we have added the recent list of restricted countries (18.09.2024).

List of restricted countries

A glimpse into the future

Mobile e-Residency

By 2027, the e-Residency program is aiming to integrate mobile biometric data collection into the application and renewal process. This innovative approach will significantly speed things up, making it easier and faster for you to become an e-resident. Think of it as a stepping stone towards a future where the physical card transitions into a convenient mobile solution, seamlessly integrated with the upcoming EU Digital Wallet.

Tax landscape updates

2025 will bring significant changes to the Estonian tax landscape. These forthcoming modifications will have a notable impact on both individuals and businesses operating within the country. Here are some key changes:

• Adjustment in income tax rate: The new rate will be 22%.
• Removal of the reduced tax rate for regular dividend payments.
• Increased complexity in car tax calculations.
• Increased VAT rate on e-books, press publications, and short-term rentals.

Want a more detailed breakdown of these tax changes?

Read our blog post: Updates to Estonian taxes YOU should know in 2025

Planning for the future

To take advantage of the current lower fee for e-Residency applications and renewals, consider applying before the end of 2024. Stay informed about any potential application restrictions by following official e-Residency channels. Additionally, be mindful of upcoming tax changes in Estonia and adjust your financial plans accordingly.

We understand that these updates might raise questions. Don't hesitate to reach out to our support team at support@xolo.io for any clarification or assistance you may need.