Articles

Estonian e-Residency penalties: What happens if you don’t comply?

Last week, we outlined the key responsibilities of Estonian e-residents in 2025 and how Unicount helps you stay compliant. But what happens if an e-resident, or the director of an Estonian OÜ, misses their legal and business duties?

Estonian e-Residency offers entrepreneurs a chance to run a trusted EU company fully online, but with that freedom comes responsibility. Failing to comply with Estonia’s legal and accounting requirements can lead to serious consequences, from administrative fines to losing your e-Residency digital ID altogether.

Suppose you are an e-resident in Estonia or plan to apply in 2025. In that case, this comprehensive guide from Unicount explains what happens if you do not meet your obligations and how to avoid penalties that could harm your business and digital status.

Key responsibilities of Estonian e-Residents in 2025.

Becoming an Estonian e-resident gives you access to a unique digital identity that unlocks a world of business opportunities across the EU. But with this digital privilege comes a set of responsibilities to ensure the trust and transparency of Estonia’s e-services. In this guide, we explain what every e-resident must know about their legal and practical duties.

How to get started with your Estonian e-Residency digital ID: Guide for 2025

Becoming an Estonian e-resident opens the door to managing your EU-based company fully online. Central to this digital empowerment is your e-Residency digital ID, a secure tool enabling you to authenticate yourself and digitally sign documents anywhere in the world. This guide walks you through setting up and using your digital ID, including the modern alternative, Smart-ID, so you can confidently access Estonia’s e-services and grow your international business.

What expenses trigger corporate income tax & how to claim VAT refunds in Estonia

Doing business in Estonia as an international entrepreneur or e-resident requires understanding the local tax system, particularly corporate income tax obligations and VAT refund rules for expenses incurred across borders. This article provides clear examples of payments that trigger Estonian corporate income tax and explains how to claim VAT refunds on cross-border business expenses, helping foreign entrepreneurs stay compliant and optimize their tax position.

Can I use my Estonian company to work as a freelancer or contractor abroad?

One of the most common questions we hear from e-residents is whether they can use their Estonian company to work as a freelancer or contractor for clients abroad. The short answer is yes, but the long answer is more nuanced, and it depends on how you structure your work, where your clients are based, and what your local tax obligations look like.

At Unicount, we’ve helped thousands of e-residents launch Estonian companies for remote work. Many of them are developers, designers, consultants, marketers, and other professionals who want to invoice international clients without the complexity of local bureaucracy. Estonia’s e-Residency program makes this possible, but it’s important to understand the legal and tax implications before you get started.

Understanding Estonian taxable payments. Guide for businesses

Estonia’s unique corporate income tax system stands apart from traditional taxation models worldwide, offering businesses exceptional flexibility and growth opportunities. Unlike classical corporate tax systems that tax annual profits, Estonia operates on a distribution-based taxation model where corporate income tax is only triggered when profits leave the company or when non-business-related payments are made.

Expert Answers about dividends, accounting, and taxation in Estonia.

Earlier this week, Unicount hosted a live webinar for e-residents. The session was called E-Residency Can Power Your Business, and it brought together our business expert to answer real questions from real founders.

During Q&A, we covered everything from dividend payments and tax obligations to accounting workflows and intellectual property rights. The questions were sharp, the concerns valid, and the insights worth sharing. So in this blog, we’re highlighting the most important takeaways, especially for e-residents planning their businesses or navigating cross-border taxation.

How to scale your Estonian company as an e-Resident: From solo founder to small team

Starting a business as an e-resident in Estonia is refreshingly simple. You register your company online, manage it remotely, and enjoy the benefits of a transparent tax system and digital-first infrastructure. But what happens when your business starts to grow? When you move from being a solo founder to building a small team, the landscape changes, and so do your responsibilities.

Scaling is exciting, but it also requires structure. You’ll need to consider employment contracts, labor taxes, payroll reporting, and potentially adjustments to your company’s legal structure. At Unicount, we’ve seen this transition happen often. Many of our clients start lean and digital, then expand into something more substantial. This blog is for those founders, the ones ready to take the next step.

How to change board members or shareholders in your Estonian company: A practical guide

As your business grows, so does your team. Whether you’re bringing in new talent, restructuring ownership, or simply updating your company’s records, knowing how to properly change board members or shareholders is essential for staying compliant in Estonia.

At Unicount, we regularly assist e-residents with company amendments. These changes may seem procedural, but they carry legal weight, and when done correctly, they help protect your business, clarify responsibilities, and ensure smooth operations.

This guide walks you through the key steps, legal requirements, and practical considerations involved in updating your Estonian OÜ’s management board and shareholder structure.