The idea of residency in a particular country or location is a fairly well-understood idea — it’s a place you settle and live long-term, if not forever. Somewhere you probably use local services, and may support the nation through taxes and social security.
What about e-residency though? The number of e-residency countries is growing worldwide — what’s that all about, and what does it mean for those who take part in such programs?
In today’s age of digital transformation, the boundaries of work and business are being redefined. The traditional concept of being tied to a specific location for work or business operations is fading, giving way to a more flexible, location-independent and digital way of working.
This shift has been particularly beneficial for a specific group of professionals: knowledge workers, aspiring entrepreneurs and digital nomads. If you belong to this group, you might have heard of the term 'e-residency.'
E-residency is a revolutionary initiative that allows individuals to start and manage a business online, irrespective of where they live or work. It's a government-issued digital identity that provides access to a country's digital infrastructure and business environment. With e-residency, you can register a company, open a bank account, submit taxes, and access business services — all online and without the need to physically be in that country.
The concept of e-residency was first introduced by Estonia in 2014, with the aim of making Estonia a global hub for digital nomads and entrepreneurs. The program has been a resounding success, attracting over 100,000 e-residents from around the world and serving as a model for other countries.
In this article, we will explore e-residency programs offered by different countries as of 2024. Whether you're an aspiring entrepreneur looking to start your business, a freelancer seeking to expand your services globally, or a digital nomad wanting to optimize your work setup, this guide will provide you with the information you need to choose the right e-residency program for you.
E-residency programs are particularly appealing to knowledge workers, freelancers and digital nomads who operate in the global digital economy. These programs offer a host of benefits, including access to a stable business environment, the ability to operate a business within the EU, and access to global payment providers.
In a nutshell, e-residency allows you to manage your business remotely, providing ultimate flexibility and freedom.
One of the most significant benefits of e-residency programs is the ability to establish and operate a business in a global context.
As an e-resident, you can register a company in the country offering the program, with whatever advantages that location offers. This may include the legal framework of a stable, well-regulated economy and currency, and gaining access to a broader market.
E-residency programs provide access to a country's digital infrastructure.
While every program is different in the details (see below) — everything from online banking and tax systems to digital signatures and invoicing — these digital tools all seek to simplify business operations, making it easier to manage your business from anywhere in the world.
E-residency programs often provide access to global payment providers, making it easier to send and receive payments worldwide.
This is particularly beneficial for freelancers and solopreneurs who have clients across the globe, as well as those whose countries of origin may be less accessible to these gateways and services. Additionally, e-residency allows for simplified tax management, with the ability to declare and pay taxes online in many locations.
E-residency programs offer the opportunity to join a global community of entrepreneurs and digital nomads. This can lead to networking opportunities, collaborations, and the chance to learn from like-minded individuals. When you meet fellow e-residents, you know they share a global perspective on borderless business, and wherever they come from and presently live, you often find you have many attitudes in common.
Some programs even offer access to exclusive events and resources for e-residents, such as those organized by Estonian e-Residency around the world — including one of the largest events of its kind in Tallinn during May.
E-residents of many countries often find themselves growing connected with their host country in ways they never expected.
Having a business registered in a reputable jurisdiction can enhance your credibility with clients and customers. It shows that your business operates within the legal framework of a recognized economy, which can build trust and confidence among your clientele.
In many e-residency country programs, police vetting (such as for criminal records or financial mismanagement) is a part of the application process. So when you do business with a fellow e-resident, you can trust that they have been investigated and found to be a person of legal and honest character.
Perhaps the most appealing aspect of e-residency for digital nomads and freelancers is the flexibility it offers. With e-residency, you can manage your business from anywhere in the world, as long as you have an internet connection.
This means you can travel or live abroad without worrying about the logistical challenges of managing a business, or moving that business from one place to another when you relocate. It’s a simple truth that the technology of business operation has moved a lot faster than the regulatory frameworks which underpin it, and e-residency programs are a great solution to this — unlocking personal mobility, while the business entity stays in one safe place.
The following table summarizes the state of play, as more countries roll out their e-residency programs.
Introducing such a program takes a lot of planning and infrastructure — a lot more than simply launching a digital nomad visa, for example. As such, many of the e-residency countries on this list are simply not quite ready yet, and lacking publicly available data:
|
Fully online application? |
Cost of application |
Ease of doing business index |
Dedicated e-Residency infrastructure |
Access to European infrastructure |
---|---|---|---|---|---|
Estonia |
yes |
€100-130 |
18th |
yes |
yes |
Azerbaijan |
yes |
85 AZN |
28th |
no |
no (see notes below) |
Liberland |
yes |
$100 |
not ranked |
no |
no |
Portugal |
yes |
€90 — €299 |
39th |
yes |
yes |
Lithuania |
no |
€90 |
11th |
no |
yes |
Ukraine |
no |
free |
64th |
no |
no |
South Africa |
unknown |
unknown |
84 |
unknown |
no |
Georgia |
unknown |
unknown |
7th |
unknown |
no |
Brazil |
unknown |
unknown |
124th |
unknown |
no |
Palau |
yes |
$248 |
145th |
unclear |
no |
Próspera |
yes |
$130 |
170th |
unclear |
no |
We have to start by looking at Estonia, of course.
Estonia's digital infrastructure makes it one of the most digitally advanced countries in the world. As an e-resident, you can access this infrastructure 24/7, from anywhere. This has made Estonia an attractive destination for entrepreneurs, freelancers, independent contractors and digital nomads worldwide.
Estonian e-Residency allows for the establishment and operation of a company online, with the assistance of a service provider like Xolo. This includes access to online banking, international payment service providers, digital document signing, and the ability to declare and pay taxes online. Estonia’s e-Residency program is designed to make business operations as seamless and efficient as possible, reducing bureaucracy and providing modern entrepreneurs with unprecedented freedom and flexibility.
The world’s first e-Residency program is not just about business. It's about creating a global digital society, where physical borders and restrictions no longer pose an obstacle to entrepreneurship. The program has been designed to be accessible, affordable and straightforward, making Estonia one of the best places to start a business.
Estonia's taxation system is also attractive to businesses. Corporate income tax is charged only on profit distribution, capped at 20%. As long as profits are kept within the company, no corporate income taxes are due. This, combined with Estonia's EU membership, provides access to the EU single market and popular payment gateways like PayPal and Stripe.
Estonia's e-Residency program is a testament to the country's innovative spirit and its commitment to creating a digital society that benefits global citizens. It offers a unique opportunity for individuals worldwide to establish and manage a business in the EU, providing access to a robust digital infrastructure and a favorable business environment. As the pioneer of e-Residency, Estonia continues to lead the way in digital entrepreneurship.
Despite the emergence of other e-Residency programs worldwide, Estonia's program remains a leader due to its mature support and marketplace. The country's pro-business infrastructure, combined with its digital advancements, makes it a compelling choice for anyone looking to run a borderless business. Learn more here.
Azerbaijan is located at the junction of Europe and Asia. It is part of the European Neighborhood Policy (ENP) and the Eastern Partnership initiative, though not the EU or the Eurozone. In 2018, it became the second country in the world to offer e-residency.
Using all the cross-border e-services provided by the Azerbaijani Digital Trade Hub, the e-Residency (Electronic Residency) and m-Residency (Mobile Residency) initiatives enable entrepreneurs from around the world to establish and operate a location-independent firm in Azerbaijan.
E-Residency and m-Residency have the same functions, apart from one difference: e-residents have a chip-enabled identification card for authentication and signatures, while m-residents have a special Asan İmza (mobile identification) SIM card.
Holders of either digital identity can sign documents, manage taxes and accounting, confirm custom declarations, and conduct e-banking and money transfers from anywhere in the world.
Azerbaijan offers global entrepreneurs and companies great tax benefits, including a three-year complete tax exemption for businesses with a startup certificate.
However, one of the biggest barriers to setting up a business in Azerbaijan’s digital economy is language. Azerbaijani is the official language, and Lezgian, Talysh, Avar, Russian, and Tat are also spoken. If you don’t have a working knowledge of any of these, it can be difficult to manage your business through the Azerbaijan e-Residency.
Also, the uptake remains low with this emergent program, making it difficult to find relevant case studies and statistics, from which to draw conclusions. Potential Azerbaijani e-residents will want to carry out extensive individual research and due diligence, to establish suitability for their own use case.
At the moment the government website is still declining applications due to Covid, but maybe they will open up again soon…
The Free Republic of Liberland is a micronation between Croatia and Serbia, with a total area of approximately 7 km².
Since its establishment in 2015, Liberland has accepted more than 500,000 applications from individuals throughout the world for its citizenship platform. Most of these applicants are high-net-worth individuals, business owners, and investors who see Liberland as an opportunity for growth, and find its ‘tax optional’ policies attractive.
Liberland’s e-Residency allows you to identify yourself in-person and online at Liberland’s events and sign and authenticate documents online. It also provides access to Liberland’s encrypted communication facilities. With the e-Residency card, you can start a business in the micronation and manage your company virtually.
The card also allows you to apply for citizenship in Liberland — but the two concepts are closely conflated in this emergent micronation. While Liberland gives you access to Apatin’s free trade zone and boasts great deals on real estate, other organizations do not legally or diplomatically recognize the micronation. In contrast, organizations, including the EU, recognize Estonian e-Residency.
Portugal's e-Residency program — announced in 2020 as part of the Nation Entrepreneurship Strategy to encourage investment, technology and innovation — is a platform designed to assign a digital identity and residency in Portugal to non-resident citizens or companies.
This program should provide access to online Portuguese public services, consequently assigning a NIF – Tax Identification Number and a NISS – Social Security Identification Number. These numbers are necessary for creating or registering a company and opening a bank account, both required for the exercise of professional activities and business.
The e-residency program intends to make Portugal an international destination where professional and business activities can be carried out without a physical presence.
However since these government announcements a few years ago, word on this program has gone quiet. We look forward to updating this section when more news emerges, but for now, all details - including the tax benefits and associated costs - remain ambiguous.
Closely modeled on that of its famous Baltic neighbor, Lithuania launched its e-residency program in January 2021. It is designed to provide foreigners with access to the administrative, commercial and public services of the Republic of Lithuania. The e-residency, once granted, remains valid for a period of three years.
Lithuania's ease of doing business index ranks 11th globally, making it an attractive choice for entrepreneurs looking to avoid lengthy administrative procedures and paperwork. The country has gained recognition as one of the rapidly growing fintech hubs in the post-Brexit era. Furthermore, the widespread use of languages such as Lithuanian, Russian, Polish and English in the country reduces potential language barriers during administrative tasks.
However, the Lithuanian e-residency program does have certain limitations. Applicants are required to travel for both the application and card pick-up stages, which can be inconvenient and costly. Additionally, the program is still in its early stages, currently only providing access to the government's e-services portal.
Eligibility for the Lithuanian e-residency requires applicants to be 18 years or older, hold a valid travel document recognized by the Republic of Lithuania, and submit their biometric information.
The application process for the Lithuanian e-residency involves filling out an application on the Migration Information System and submitting it to the Migration Department. Applicants outside the country must submit their applications through a selected external service provider. This is followed by the submission of a valid passport and supporting documents, and a physical appointment to provide biometric information. Applications undergo checks related to national security and money laundering prevention before approval.
The Ukrainian e-residency scheme allows foreign citizens to open and run a business without being in the country. It was initially created in 2020 to attract IT professionals and freelancers to formalize their business relationships and simplify contracts and operations.
The Ukrainian government has created a simplified tax regime, under which private entrepreneurs are taxed a flat five percent on their income. There are no other overheads or additional fees involved.
Additionally, to make registration and usage of the program easier, the government has created various tools that pre-fill your tax reports and give you access to a personal manager. Ukraine's digital infrastructure is well established, and you can even open a bank account without needing to visit the country.
Immediately after Russia’s invasion, Ukraine applied to become a part of the European Union, and its candidacy was approved — so one day, Ukrainian e-residency may provide access to that same EU market and infrastructure.
Obviously, one of the biggest factors to consider right now is the fact that the country is embroiled in Russia’s illegal war, and will require decades of rebuilding. However, the e-residency program may help attract inward investment and a way to show support for the nation at this time of need.
If you’re considering Ukrainian e-residency, you should note that it was created to attract IT entrepreneurs initially. If you’re a professional from any other field, your application might be rejected or take longer to approve. Moreover, English is not widely used in Ukraine, which might create barriers for you if you don’t speak Ukrainian or Russian.
South Africa, known for its diverse ecosystems and status as an upper-middle-income country, is set to introduce an e-residency program to attract foreign investors and entrepreneurs. The program aims to unlock new investment opportunities by providing a conducive environment for innovation and business expansion.
While specific features of the e-residency program are yet to be disclosed, it is expected to offer benefits such as streamlined administrative processes, access to market insights, and networking opportunities. The program allows entrepreneurs to establish and operate an online business in South Africa without the need for a physical presence. It also provides tax benefits and enables virtual tax payments, simplifying the taxation process for business owners.
However, as the e-residency program has not been officially launched, there is limited information available regarding its specific features and benefits. There is also uncertainty surrounding the implementation and effectiveness of the e-residency initiative. The success of the program will depend on factors such as infrastructure development, regulatory frameworks and administrative procedures.
At the moment there is no application pathway available on the South African government website, so we are all awaiting further news.
In comparison to the Estonian e-Residency program, which is well-established and offers access to the European digital ecosystem and markets, the South African e-residency program is still in its early stages and lacks detailed information about its capabilities and advantages.
Georgia, another nation strategically positioned between Europe and Asia, has embarked on a journey to attract international investors and entrepreneurs through an innovative e-residency program.
Launched in October 2018, the program aims to create a digital ecosystem that enables non-residents to register, operate, and manage businesses in Georgia remotely. The e-residency card, valid for three years, grants access to a wide range of administrative, commercial, and public services in Georgia.
E-residents in Georgia gain access to a wide range of administrative services, such as tax filings and company management, which can be conveniently handled online. There are also tax advantages for foreign investors.
One of the key advantages of Georgian e-residency is the ability to open bank accounts in Georgia. This feature, integrated in the program, provides international entrepreneurs with access to a reliable and secure banking system, allowing them to conduct financial transactions seamlessly.
However, the program does have certain limitations. The Georgian government has yet to provide comprehensive information concerning all the features and benefits of the e-residency application, or any application process.
Also, while Georgia’s EU application has been accepted, the accession remains deferred, so e-residents would not have access to that marketplace presently.
Brazil is the sixth-largest economy and the fifth-largest country, and is hailed as an investment paradise for many businesses. It already has a growing reputation as a digital nomad hotspot.
The country is anticipated to offer an e-Residency program soon that’ll prove lucrative for investors and entrepreneurs worldwide — providing an amazing opportunity to base yourself in South America and access its digital economy, as well as a gateway to this emerging marketplace via its strong European ties.
Since it will be the first country in South America to offer such a program, it will create unique opportunities for investors and entrepreneurs.
Like other e-Residency programs, the program is expected to allow Brazilian e-Residents to authenticate and sign documents using government-issued ID cards and conduct online payments and digital banking. With an e-Residency, entrepreneurs will be able to handle the day-to-day activities of their business from the comfort of their homes.
Since there isn’t an official announcement outlining the features of the Brazilian e-Residency program, it is difficult to measure its advantages and disadvantages. Once the program comes into action, we will be sure to update and share the news.
The Republic of Palau, an island nation in the Pacific Ocean (which makes Estonia look big!), announced the launch of a digital residency program in 2021, in partnership with Cryptic Labs, a blockchain research institute and commercial accelerator.
This program, known as the Root Name System (RNS), is a blockchain-based residency and ID system that aims to provide access to future services within Palau's emerging digital economy.
The RNS is a foundational digital ID recognized by a sovereign nation, and it is being developed to diversify Palau's economy.
The key advantage of the blockchain-backed digital ID is its capacity for building Know Your Customer (KYC) and Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) clearances directly into the ID itself. With crypto exchanges welcoming the Palau Digital ID, the program has been criticized for providing a potential safe haven for crypto scammers and corruption.
The digital residency program aims to streamline the registry process, which is currently time-consuming due to the lack of technology to verify backgrounds. With the new digital ID processor, the vetting process will be quicker and more efficient. This could potentially lead to the establishment of e-corporations in Palau, pending the passage of the necessary legislation. However you cannot currently open a business with this digital ID.
Palau's web3-based digital residency program is about promoting economic freedom and catering to the needs of digital nomads around the world. The program invites people to become digital residents of this paradise, hoping that these digital residents will want to visit Palau in person.
Normally, residence of any kind is associated with a country or state, but Próspera is a bit of a wild card here: It’s a private city and special economic zone on the island of Roatán in the Central American state of Honduras.
The city is an autonomous zone with a private government and its own fiscal, regulatory and legal architecture, so it can offer its own unique terms for digital residents. According to its website, “Próspera is for builders, pioneers, and risk-takers who believe in the boundless potential of human achievement and choose to build the future we want.” As such, they aim to achieve a better ease of doing business, than the current ranking for Honduras indicated in the table above.
E-residents of Próspera can buy, sell, own and lease property in the zone, and also reside there for up to 180 calendar days per 12 months. They can form businesses, with no tax withholdings, and enjoy discounted rates for the arbitration services which appear to serve as the legal framework of the city.
With a distinct lack of transparent information available due to its private status, it’s difficult to compare the advantages and disadvantages of Prósperan e-residency with that of Estonia or anywhere else, but that privacy may well be what attracts its community in the first place.
While the digital nomad visa scene has exploded in recent years, the steady growth of e-residency programs has received less attention. Today we’ve discovered that more and more countries are waking up to e-Residency’s potential benefits,
Some of the schemes we have covered are still in their infancy, compared to Estonian’s 9-year history and 100,000 strong digital community. And yet other countries are expected to announce similar programs very soon.
There is a considerable range of interpretation within the definition of e-residency itself, with not all nations using the word in the same way as Estonia. Digital transformation in government technologies worldwide means that the letter e gets prepended to all sorts of words! Malta’s “E-residence permit,” for example, is actually a digital nomad visa in reality, as it offers the right to live in the country.
E-residency programs are revolutionizing the way we think about citizenship, business, and global mobility. By providing a digital identity and a platform to conduct business operations remotely, these programs are opening up a world of opportunities for entrepreneurs, digital nomads, and freelancers alike.
Whether you're an aspiring entrepreneur, a seasoned business owner, or a digital nomad, e-Residency programs offer a unique opportunity to expand your horizons and operate on a global scale.
Maya Middlemiss is a freelance journalist and author, excited about the future of work, business, money, and technology. She operates her e-resident business through Xolo Leap, so that she can work frictionlessly with brands and publications all over the world, and she is the host of the Future is Freelance podcast. Exploring the social impact of technology on our changing world, and bringing those stories to life in an accessible and inclusive way, is her passion — because all of this is far too exciting to leave it to the geeks. Maya is a 'digital slowmad', originally from London, presently living with her family in Eastern Spain.
and get the latest updates and expert
business tips straight to your inbox.