There’s a major caveat though. Estonia’s e-Resident program does not automatically establish tax residence in Estonia. So, despite providing one of the most advanced digital platforms to do business and sporting a 0% corporate income tax rate (before capital distributions), Estonian e-Residents will remain taxable in their country of residence. So, what’s the point? Well, I guess, whoever dealt with big government administration in other European countries like Italy, France, Spain, or even Germany, will quickly realize that being able to cut through red tape by tapping a state-of-the-art digital services infrastructure means saving lots of time and money. It’s a smart initiative that has already started bearing fruit for the small forward-thinking Baltic state. In Forbes Magazine’s 2016 Ranking of Best Countries for Business, Estonia ranks #13, well ahead of Germany (#21), the United States (#23), France (#26), Spain (#29) and Italy (#42).
If the Estonian government continues its efforts to pioneer a sophisticated and open digital society, it will only be a matter of time, until Estonia rises to a major hub and hotbed for entrepreneurs from all over the world. Maybe, it’s even more than that. Maybe, we are witnessing the evolution of what will define a prospering country and society in the future.