Estonia's e-Residency program generated nearly €68 million for the state budget in the first six months of 2025, surpassing the total annual revenue of last year.

According to the program's managing director, Liina Vahtras, most of the impact came from taxes, which accounted for €65.9 million. Of this, €26.2 million came from labor taxes and €39.7 million from income tax, mainly from dividends. An additional €2.1 million was collected in state fees from digital ID applications and company registrations.

Vahtras said tax revenues rose sharply in January and February, when companies declared dividends early ahead of an income tax hike. Despite the spike, revenues stayed higher than usual throughout the spring, which she said shows that e-resident companies are "viable and growing."

From January to June, 7,994 people applied for e-Residency and 2,634 new companies were founded by e-residents, marking year-on-year growth of 23 percent and 8 percent, respectively. France and Italy saw the strongest surge in applications, while Germany, the UK and Latin America also showed steady growth.

Minister of Economy and Industry Erkki Keldo (Reform) credited Estonia's tax system and digital services for attracting entrepreneurs. He said the government's decision to abolish corporate income tax from 2025 will further strengthen the country's competitiveness.

E-Residency is also fueling Estonia's service sector. Companies listed on the official e-Residency Marketplace platform earned €15.5 million from e-resident clients in 2024, a 36 percent increase from the previous year. Service providers report growing demand for company setup, accounting, legal advice and automated digital solutions.

Since its launch in 2014, more than 128,000 people from 185 countries have become e-residents, establishing or co-founding over 36,000 Estonian firms. The program has generated a total of €342 million in direct economic impact for Estonia.

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