Estonian e-residents founded 5,556 companies (a rise of 15 percent on the year) in 2025.

According to Minister of Economic Affairs and Industry Erkki Keldo (Reform), the continued success of the program is evidence that Estonia has made the right choices in developing its business ecosystem. "Every euro invested in e-Residency brought us more than €12 back last year – this is a clear signal that investing in digital services works. E-Residency, together with a business-friendly tax system, provides entrepreneurs with a simple and modern way to do business globally while at the same time helping to grow Estonia's economy," Keldo said.

"In the larger European countries, entrepreneurs get stifled by bureaucracy, which leads them to look for countries where things can be done quickly and cost-effectively. This is also the main reason why the number of new e-residents continues to break records," the minister went on via a press release.

Liina Vahtras, head of the e-Residency program and member of the management board of Enterprise Estonia (EIS), said the focus of e-Residency is highly specific: To bring more companies, more economic activity, and more tax revenue to Estonia.

This is also at the core of the program's updated strategy for 2026–2029, she said, adding this will include phasing out the traditional plastic e-residents' card. "Today, the biggest obstacle to the development of e-Residency is the slow and cumbersome process related to the plastic ID card. The easier and faster it is for a foreigner to establish a company in Estonia, the sooner they will start generating revenue here. Our analysis shows that a card-free, fully mobile-based e-Residency would increase company formation by at least 20 percent, and bring the state an additional €3–9 million in tax revenue each year," Vahtras said.

"Global demand for fast and cost-effective entrepreneurship is growing, and our goal is to make e-Residency as simple as possible, so that in the near future a smartphone alone will be enough to establish a company," she went on.

In order to reach a card-free solution, Vahtras said two clear steps need to be completed through 2026-2027, starting with the development of a mobile app enabling biometric data capture, already undergoing a procurement process. Next, the required legislative amendment is needed to allow a transition to biometric identity verification based on an applicant's travel document. That law is under process too, Vahtras added.

The e-Residency program reports that last year, 13,828 new e-residents joined, a 20 percent increase from the previous year and the best result in six years. The highest number of applications in 2025 came from Germany (1,122 people, a rise of 49 percent), France (1,016, up 56 percent), and Ukraine (921, a 5 percent increase).

Other growing markets include Italy, the U.K., and several Latin American countries.

The largest number of the 5,556 new companies were established by e-Residents from Ukraine, Spain, Turkey, Germany, and France.

In 2025, the e-Residency program's economic impact on the state was reported as €124.9 million. This included €54.5 million in labor taxes, €66 million in income tax (primarily dividends), and €4.3 million in state fees from applications and company registrations. Within their first year, 17 percent of companies paid taxes, totaling nearly €7 million.

Launched in late 2014, the e-Residency program offers foreign citizens secure access to Estonia's e-services. Over 135,000 people from 185 countries have become e-residents, with about 50 percent from EU countries. Currently, more than 63,000 digital ID cards are in circulation. E-residents establish 20 percent of new Estonian companies each year, totaling over 39,000. The program's economic impact is nearly €400 million, and e-resident entrepreneurs spend over €15 million annually on local services. The total cost in 2025 was €10 million, with implementation by the Enterprise and Innovation Foundation.

The program's economic impact is measured using a nationally approved model, considering labor taxes and income tax (mainly dividends) paid by e-Resident-founded Estonian companies. An e-Resident company is one where the e-Resident's role was established at incorporation or within 90 days, and the e-Resident must have obtained status before the company's creation.

The e-Residency program was founded in December 2014. British journalist Edward Lucas was Estonia's first ever e-resident. E-residency does not equate to physical residency in Estonia.

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