Estonia’s Tax Policies for Digital Nomads

On December 1, 2014, the Estonian government launched the world’s first e-Residency program, an innovative initiative that has drawn global attention. At first glance, the name might suggest that e-Residency allows holders to legally reside in Estonia. Unfortunately, this is not the case. The e-Residency card is merely a digital identity tool that grants access to Estonia’s electronic services, such as setting up a business. However, it does not allow holders to enter Estonia, let alone live there or become an EU citizen. Essentially, it’s just a digital ID card or security token.

Fast forward to August 1, 2020, Estonia finally introduced the Digital Nomad Visa, bringing the concept of virtual residency into the physical world. This visa provides digital nomads with the legal right to enter and reside in Estonia. There are two types of Digital Nomad Visas:

• Type C Visa: Allows stays of up to 90 days.
• Type D Visa: Allows stays of up to 1 year.

Although the Digital Nomad Visa cannot be renewed, applicants are allowed to reapply for the visa and may also include their family members in the application.