Everything you need to know about our services, billing, and processes.
e-Residency is a secure, government-issued digital identity that provides access to Estonian e-services.
e-Residency provides access to the EU business environment from anywhere in the world. e‐Residents are granted access to secure e‐services, such as digital authentication, digital signatures, and the ability to start a company.
e-Residency is available to anybody in the world.
e-Residents can:
e‐Residency does not provide citizenship, tax residency, a residence permit, or the right to enter Estonia.
Tens of thousands – and the number continues to grow.
All e-Residents receive a digital ID card to prove e-Residency.
Yes. The smart ID card is protected by two unique PIN numbers for secure digital authentication and transmission of digital signatures.
No. The e-Resident ID card is not a travel document and does not display your photo.
There are a few steps involved, but we can help. Click here to learn more.
Yes and no. While Estonia makes it easier than almost anywhere else, there are a couple issues commonly faced:
No. Corporate income tax is flat 22%, and VAT is 24%. But corporate income tax is only applied to dividends, meaning reinvested corporate profits are tax-free. Fringe benefits are taxed in the same way as salaries. Read more about Estonian taxes here.
Most entrepreneurs elect to partner with an experienced service provider for three reasons:
Thousands. For the most current figure, click here.
Absolutely! Read more about travel opportunities here.
Numerous international organizations have recognized Estonia as having a thriving, open, and competitive economy. Estonia has been ranked:
Estonia offers highly-competitive international credit ratings:
Value Added Tax (VAT) is a tax levied on goods and services in most countries of the world.
For a theoretical background, you can read the Wikipedia article.
It is important to understand how and when VAT is applied to your business model. In some cases VAT rules can also be an important factor in deciding whether or not it makes sense to run your business using the "e-Residency + company in Estonia" model.
The VAT rate in Estonia is 24%.
In case your company has made profit, it is possible to pay dividend to the shareholders. Shareholders receive dividends proportionately to the share of the company that they own.
NB! Before the company is allowed to pay dividend, the company's share capital needs to be paid into the company bank account.
After you have made the share capital payment, please inform your Nomahd Business Hub accountant, so we could formulate the changes in the company registration documents.
Dividends are taxed with 22% corporate income tax. This means that ratio of tax / net dividends is 22/78.
Example: A company decides to spend €100,000 of its accumulated profit to make a dividend payment. This sum is divided in the following manner:
In the case described above, the €78,000 which is received by the company's shareholders, may be considered their income in the country where they are tax residents. It may therefore be taxed with a personal income tax in their country of residence. Please check with a tax advisor in your country of residence to find out if this applies to you.
Please contact your accountant at Nomahd Business Hub if you have any further questions about how the dividends that your Estonian company pays to its shareholders are taxed in Estonia.
In case your company has made a profit, it is possible to pay a dividend to the shareholders. Shareholders receive dividends proportionately to the share of the company that they own.
NB! Before the company is allowed to pay dividend, the company's share capital needs to be paid into the company bank account. To do that, each shareholder needs to make a payment to the company bank account, indicating clearly that this payment is for "Share capital downpayment".
Also – your company's annual report needs to be submitted to the Business Registry before you can pay dividends.
After you have made the share capital payment, please inform us so we could formulate the changes in the company registration documents.
The Estonian law allows a company to pay to its Board Members a fee for performing their duties as Board Members. This fee is always taxed in Estonia (regardless of whether the Board member lives in Estonia or not). The Management Board Member fee is taxed in the following manner:
In case you pay yourself the Board Member's fee, then your company is obliged to pay 33% or Social Tax in Estonia. If you live in another EU member state and you wish that these payments would be made directly to the social welfare account in your country, you need to do the following:
In case you plan to employ people who are tax residents of Estonia, please send us their Estonian ID code and start and end dates of their employment contracts. You must do that BEFORE these people begin actual work in Estonia. We will enter this information in the Estonian Employee's Registry.
NB! Employees who are not Estonian tax residents and do not live in Estonia do not need to registered!
In case your company is paying salaries to its employees who are Estonian tax residents, the company is required to withhold the following taxes and transfer them directly to the Estonian Tax and Customs Board:
We will calculate the taxes, based on actual payments your company has made to your employees during the previous calendar month and inform you no later than on 7th day of each month. In case there are tax payments, which are due, this leaves you three calendar days to make the tax payment.
NB! It is your responsibility to make sure that the tax payments reach the bank account of the Estonian Tax and customs board on time. We shall inform you of the relevant bank account numbers and reference number you need to use when making the tax payments.
In case the company has employees who are not Estonian tax residents and who live and work outside Estonia, salary payments to these foreign employees are not taxed in Estonia and we do not submit any tax declarations about these employees.
In such case, these foreign employees must declare their income from your Estonian company in the country in which they live and are tax residents.
NB! It is your responsibility to make sure any income of your foreign employees is properly declared in the foreign countries in which they live. In case any supporting documentation is required on behalf of your Estonian company – please let your Nomahd Business Hub accountant know.
A client needs to forward to ERHub all data about its economic activities in a given calendar month no later than on the 5th day of the following calendar month.
Using Invoice, this data exchange can be done in real-time and as-you-go. We recommend that you send all invoices and receipts to us as they occur, instead of sending them all together at the end of the month.
You need to send us the following information:
Sales invoices must be created using Invoice. You do not need to send these to us separately. Travel expense reports must be created using Invoice.
The following information needs to be written on purchase and sales invoices:
Nomahd Business Hub will provide you with an email address in the following format:
xxxxxxxxxxx@envoice.eu
You need to send your purchase invoice to that email address either in .PDF or .JPG format.
In case you have received hard copy (paper copy) invoices, you can use our mobile app to snap a picture of the invoice and send it to us via the app.
If possible, please ask your suppliers to submit invoices in English, Estonian, or Russian. If that is not possible, please include in the email an explanation about what this invoice was for.
NB! When emailing your invoices to us, please attach only one invoice at a time!
In case you wish to upload your invoices to Invoice in bulk, you can set up your own DropBox or OneDrive folders for your invoices. These folders will then be automatically synced with Invoice. Please contact your accountant for more info about how to set up such folders.
Receipts are different from invoices in that they usually do not have the buyer's name written on them. In most cases, receipts are in hard copy (paper copy).
A receipt needs to include:
Receipts can be forwarded to us, using the Invoice app. You simply take a photo of the receipt and send it to us via the app. Please use Multipage function, if your receipt has multiple pages (card payment slip and receipt itself).
It is very strongly preferred that only business related expenses are on your receipts that you send to us.
Example: you go to the shop and buy A4 office paper for your company's use and also ice-cream for your children. Please ask the seller to issue two separate receipts: One for the A4 office printer paper and another, separate receipt, for the ice-cream.
Your purchase invoices and your receipts will appear in the Invoice tool. The invoices will be digitised line-by-line within 5 hours from the moment you send them to us.
Business trips are defined as short-term travels, with a specific business-related purpose and with actual business-related activities being carried out during the trip. Business trips usually start from your permanent place of employment. A business trip typically involves meeting customers, project partners, attending conferences etc.
When travelling for business purposes, expenses usually occur (accommodation, taxi rides, plane, train or bus tickets, meals etc). If your country's legislation allows it, daily allowances can also be claimed.
For submitting travel report and expense statements, Invoice travel application should be used. The easiest way to do this is via the Invoice mobile app. This app is used to start travel expense reports and submit related receipts (by taking a photo of the receipt using the app).
Only expenses, which are directly related to your business, can be booked as company expenses. In case you use the company bank account to pay for expenses, which are not directly related to your business, you must pay additional income tax of 25% on these sums.
All non-business related expense occurred during the past calendar month, must be declared by 10th day of the following month to Estonian Tax and Customs Board using TSD declaration Annex 6. Your accountant at Nomahd Business Hub will do this for you.
VAT is not recoverable on such expenses.
In case we have a doubt whether some expenses are business related or not, we shall ask for your explanation about those and we shall advise you about whether these expenses are business related or not in our opinion. The final decision about whether to include these expenses in the company's accounting is made by the Board Members of the company (i.e. by you). The Board Members also carry the responsibility about that decision in any future disputes with the Estonian Tax and Customs Board.
When you register a company with Nomahd Business Hub, you'll receive a private limited liability company (OÜ or osaühing in Estonian) which is registered in Estonia.
An OÜ is the simplest format to run your micro business. According to the law, by default an OÜ is managed by it's shareholders and management board members.
A private limited liability company can also elect a supervisory board, but it's optional, and the companies registered via Nomahd Business Hub do not have it.
Since you are both the sole shareholder and management board member of the company, fulfilling both roles at the same time, you are fully in charge and don't have to bother with the official distinction of decision making rights between the shareholders and the management board members, or the internal reporting requirements. In other words, in case of a single-member company, the corporate governance rules and processes are simplified – a benefit for you. And it's up to you which title (CEO, manager, director, etc) you use on your business card.
Please keep in mind that the legal power to manage your company comes with equal responsibility. By law, the founders of a private limited company and the members of the management board shall be liable for damage caused to the private limited company by their action or inaction.
Once per year your company needs to submit an annual report. The annual report has two parts:
Please note that annual reports of all Estonian companies are public information that can be downloaded by anyone from the Internet (for a state fee of 2 € per company)
Before submitting the annual report to the Estonian Business Registry, we shall send it to your company's Board Members for approval and digital signing.
Deadline for submitting the annual report for the previous calendar year is June 30th of the following year.
In case your company was established between 01.07-31.12 of a calendar year (i.e. during the second half of the year), you do not need to submit an annual report for that first year. You will submit an annual report for the first 1.5 years of activities in June of the third year of activities.
Example: if your company was established on 15.07.2018, then you do not need to submit a separate report for 2018. The first report that such company will need to submit is the joint report for 2018-2019. This report is due by 30.06.2020
A digital signature is an electronic marker which has the same legal merit as a traditional signature and/or face-to-face identification.
A digital signature can be provided by connecting your ID card to your computer with a ID card reader and running the free DigiDoc3 secure ID card software.
You can buy an ID card reader here: https://www.pluss-id.com
You can download DigiDoc3 software for free: https://installer.id.ee/
No. Your secure chip-enabled ID card is what allows you to prove your identity and digitally sign forms and documents.
No. With a digital signature, you can legally sign forms and documents from anywhere in the world – without ever having to be physically present.
Most solutions can be found on the ID card help page. For further support, you can contact us.
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