comparing estonian and lithuanian e-⁠Residency

What are the main differences between the e-⁠Residency programmes in Estonia and Lithuania?

This article was written by InCorpora in September 2021, and was updated by the Estonian e-⁠Residency team in May 2026. Incorpora is a full-service firm providing tailor-made corporate, accounting, back-office, and banking support services to e-⁠resident company owners.

Estonia launched the world's first e-⁠Residency programme in 2014. More than a decade on, it has attracted more than 140,000 e-⁠residents from around the world. 

Lithuania launched its own e-⁠residency programme in January 2021, giving foreign citizens access to administrative, public, or commercial services provided in Lithuania electronically.

So what does the Lithuanian programme actually offer? How does it compare to Estonian e-⁠Residency? And which should you choose? This article aims to answer all three questions.

What is e-⁠Residency?

In December 2014, Estonia was the first country in the world to introduce e-⁠Residency. The programme allows non-Estonians to have remote, digital access to a range of e-services such as company formation, banking, payment processing, and taxation. E-⁠residents receive a digital ID card, which they can use to securely authenticate themselves online and digitally sign, encrypt and send documents.

Thanks to e-⁠Residency, it’s possible for people from around the world to establish an Estonian company that can be run from where they live, and serve their clients wherever they are.

Why Estonia?

Estonia is a world leader in digital governance and IT, and one of the most business-friendly environments in the EU. 

Estonia is worth considering for several reasons – it's:

• An EU, eurozone, and NATO member, and is politically and economically stable
• Consistently ranked as the world's most advanced digital society
• Home to a highly skilled workforce, with particular strength in engineering, electronics, and IT.
• Ranked number one on the International Tax Competitiveness Index each year since 2013 – the most competitive tax system in the OECD

Benefits of Estonian e-⁠Residency

With Estonian e-⁠Residency you can:

• Apply online and collect your digital ID card from one of 50+ pickup locations worldwide
• Register an EU-based company 100% online and manage it remotely from anywhere
• Open a business bank account or fintech account in Estonia
• Declare and pay taxes digitally using Estonia's e-Tax portal
• Sign documents digitally
• Access a growing marketplace of service providers for accounting, legal, banking, and business administration
• Join a community of over 140,000 e-⁠resident entrepreneurs from more than 180 countries

Why Lithuania?

Lithuania has long been regarded as one of the more business-friendly countries in Europe, thanks to low administrative costs, competitive taxes, and a strong geographical position between east and west.

Some reasons why more entrepreneurs are considering Lithuania as a base for their business:

• EU, eurozone, and NATO member
• Widely spoken languages: Lithuanian, Russian, English, and Polish
• The largest fintech hub in the EU by number of licensed e-money and payment institutions
• Operating costs significantly lower than Western Europe, including salaries, office space, and administration
• Home to Vilnius, one of Europe's most liveable and fast-developing capital cities

Benefits of Lithuanian e-⁠residency

E-⁠residency in Lithuania’s e-⁠residency programme grants you e-⁠resident status in the country’s Register of Foreigners for three years, and this can then be renewed. With Lithuanian e-⁠residency you can:

• Access to Government e-Services through the Migration Department’s online portal (MIGRIS)
• Register a company online
• Use digital signatures for contracts and official documents across the EU

Estonia vs Lithuania – which programme is better?

Here are the main differences between the Estonian and Lithuanian programs and business environments.

As you can see, there are a number of differences between the programmes and it can come down to the scale of your business and how location-independent you need to be. 

You can apply for Estonian e-⁠Residency totally online and pick up the card from one of 50+ collection points around the world. In contrast, in order to apply for e-⁠residency status in Lithuania, you need to travel there to do so, and again to pick up the card.

While Lithuania’s fee is slightly cheaper than Estonia’s, the Estonian programme offers significantly more services to its e-⁠residents, including online company registration, remote business management, submitting online tax declarations, and being able to use Smart-ID to sign documents in state portals.

The Lithuanian programme is still less developed and less comprehensive than its Estonian counterpart. For example, a Lithuanian e-⁠residency card simply grants a foreigner the ability to log into the government’s e-services portal and use digital signatures.

Take your first step with InCorpora

If you’re looking to establish a company in Estonia, InCorpora is ready and waiting to help.

Setting up an Estonian entity couldn’t be more straightforward, thanks to our dedicated team. Our tailored package covers all aspects of company establishment in Estonia, including:

• Setting up an IBAN for borderless banking;
• Boosting substance with payroll, leased office, etc.;
• Giving you limited liability;
• VAT registration, if required;
• Producing a tax residence certificate within 2 days;
• Setting up payment gateways.

Company registration takes as little as one week.

This guest post was written by InCorpora, a full-service firm providing tailor-made corporate, accounting, back-office, and banking support services to e-resident company owners, and a trusted e-⁠Residency Marketplace member.