In the first two years of full operation, the e-Residency programme has returned to the Republic of Estonia 14.4 million euros of which 1.4. million euros has been net proceeds and 13 million indirect socio-economic net proceeds.
According to the economic analysis of the e-Residency programme conducted by Deloitte, the estimated return of the e-Residency programme to Estonia will be approximately 31 million euros in net proceeds and approximately 194 million euros in indirect socio-economic net proceeds by 2021. By 2021, the estimated number of e-residents in Estonia will be 150 200 who should have by then created 20 200 companies. According to the analysis, the average operating company of an e-resident will have left Estonia approximately 70 000 euros in direct and indirect net proceeds by 2025.
“It is good to know that our own calculations have been professionally confirmed by Deloitte,” Managing Director of e-Residency Kaspar Korjus said when commenting on the results of the analysis. Korjus added that the e-Residency programme is a useful investment for Estonia both economically as well as socio-politically and that from each euro invested, Estonia will get back an estimated 100 euros.
“For Deloitte Advisory, this was an opportunity to develop a unique model for the assessment of economic impact on the basis of best international practices, while adjusting this to the particular programme of ours. However, it should be remembered that there are no such programmes in the world, which is why our desire is to certainly develop this model further year by year,” head of Deloitte Advisory Monika Kallas added.
At the end of the third operating year of the e-Residency programme, we have 27 000 e-residents from 143 countries who have in total created 2 847 companies and paid 2.8 million euros in labour taxes. Of the salary payments made to the 640 e-resident natural persons, 5 million euros have been paid in taxes. If in the first operating year ten million e-residents were spoken of, by now it has become clear that the most value created by the e-Residency programme is obtained by entrepreneurs. The future development of the e-Residency programme is thereby focused on enterprises and related services.
The third birthday of the e-Residency programme also welcomed e-residents from other countries. Arzu Tutuk Altinay, a resident of Turkey, not only saved his business with e-Residency but also grew it thanks to access to PayPal services. Altinay had built a successful tourism enterprise in Turkey, but then a setback hit the country. Political problems led to the decline of the tourism sector and then PayPal ended its activity in Turkey. This meant that the people who still wanted to go to Turkey nevertheless could not pay Altinay. Today, Altinay is providing travel and tourism services throughout Europe, including Estonia. “I am sincerely thankful to Estonians who made it possible for me to overcome business obstacles as an e-resident. I am glad to be able to show my appreciation by bringing the business to Estonia”, Altinay said while sharing his experience.