estonian startup visa vs e-⁠residency: which is right for you?

If you’re a founder from outside the European Union exploring how to legally start and run a business in Europe, Estonia offers two standout options: the Estonian Startup Visa and e-⁠Residency. Each supports entrepreneurs with big ambitions, but in very different ways.

Whether you want freedom to run your company remotely or aim to physically relocate to Estonia to grow your startup, understanding the distinctions between these two programmes is essential. 

Some founders choose one or the other. Increasingly, ambitious teams use both together.

Curious? Here’s what you need to know.

What is the Estonian Startup Visa?

The Estonian Startup Visa allows non-EU founders and early team members to relocate to Estonia to build and grow a startup. It provides a legal basis to live in Estonia, and, importantly, to access the benefits of being physically present in one of Europe’s most entrepreneur-friendly countries.

Once approved, you can apply for either a short-term visa or a long-term residence permit, and the process also extends to dependent family members. You can establish your company in Estonia and build it from within the local ecosystem.

What are the Estonian Startup Visa requirements?

To be eligible, your company must meet the definition of a startup under the Startup Committee’s criteria, as the most essential of the Estonia startup visa requirements: a scalable, tech-driven business with global growth potential. This is not for any small business or freelancer. It’s specifically designed to support high-growth innovation.

Not sure? You can check whether your business meets the definition on Startup Estonia’s website.

Your application will be reviewed by the expert Startup Committee, so when you get approved, you’ll know they don’t see you as a lifestyle solopreneur or a traditional business. They’re looking out for real scalable solutions with serious potential.

Importantly, there are no sector restrictions: AI, climate tech, fintech, dual-use, health startups and more are all encouraged to apply.

Also, startups bringing co-founders or essential employees can request visas for their teams, and family members can apply for dependent residence permits.

It’s a win-win for founders to use their innate talent and ideas to get to Europe and fulfil their dreams within Estonia’s world-leading entrepreneurial climate. “We’ve seen South American entrepreneurs going to extremes to find Spanish or Portuguese or Italian roots so they can get a European passport,” Ülane explained, “but it’s very attractive for them to get here in order to build their company.

“This is all part of a bigger effort to bring the best talent to Estonia, and make it easy for people to settle and grow here.”

What does the Estonian Startup Visa cost?

Once the Startup Committee confirms your eligibility, you can complete the application form and pay the Estonia startup visa cost of €100.

However, to support your application, you will also need to demonstrate that you have in place a valid insurance policy to cover you in Estonia or the Schengen area, as well as proof of funds, because we all know that startups don’t produce guaranteed revenue from the outset.

So, you’ll need to demonstrate resources of at least €800 per month for the primary applicant, which is not much for living in Tallinn, so should be considered a minimum.  You will have to indicate your outline travel and accommodation plans at this time, but it’s a good idea to keep things as flexible in terms of your timelines and making bookings.

Essentially, beyond your business plan, you need a life plan. Relocating to a new country and building something new from scratch takes investment of many different types. So make sure you have done your homework, and bring more to the table than an idea, in order to fully take advantage of everything the country can do to support you with the Estonia Startup Visa.

What is the Estonian Startup Visa processing time?

Applying for your Estonian Startup Visa is a multi-stage process, and you need to factor all of this into your plans for work and life.

The first step in the Estonian Startup Visa process is the evaluation of your application by the Startup Committee. This committee, comprised of Estonian startup experts, reviews your business idea and supporting documents. The decision on your application is typically made within 10 working days (about two weeks).

Once you have received the approval letter (verification letter) from the Startup Committee, you can apply for the actual visa at an Estonian embassy or consulate. This is either a long-stay D visa or a short-stay C visa. The processing time for the visa itself is generally up to 30 days after submission of your application and supporting documents.

This means that the typical end-to-end Estonian Startup Visa processing time from initial submission to receiving your visa is about 60 days (two months). You may need to factor in additional time for document collection, embassy appointments, and postal delivery.

What comes after the Estonian Startup Visa?

The Estonian Startup Visa is initially granted for 12 months, with the possibility of a six-month extension. This allows non-EU founders to relocate to Estonia and establish their businesses while also getting a taste for life in this unique country.

After arriving in Estonia, founders can apply for a Temporary Residence Permit for business, which can be valid for up to five years. The business must remain active, innovative, and contribute to the Estonian economy during this time.

After five years of continuous legal residence in Estonia on a temporary residence permit, you can apply for permanent residency, if you meet the criteria. This includes Estonian language proficiency at B1 level, incidentally. 

Ultimately, after eight years of continuous legal residence, you can apply for Estonian citizenship – with full EU passport and all that entails. 

So, the Estonian Startup Visa can be just the beginning: Founders who are committed to building their business in Estonia and integrating into Estonian society, can eventually create a permanent Estonian life.

e-⁠Residency: Portal to Estonian potential

Estonian e-Residency, by contrast, is not a visa or residence permit. It doesn’t allow you to live in Estonia, but it does allow you to legally establish and manage an EU-based company entirely online.

This programme is ideal for digital entrepreneurs, freelancers, remote teams and founders who don’t need to relocate, but want access to Estonia’s transparent, digital-first business infrastructure. 

With your secure digital ID card, you can:

• Register a company online in just hours
• Sign and encrypt documents legally recognised across the EU
• Submit taxes digitally
• Manage your business from anywhere in the world

As an e-⁠resident, you’re part of a global community of over 125,000 founders and professionals from 179 countries. Some run client service agencies, others build product-based startups, and some may literally never set foot in their Estonian digital home.

From digital e-⁠Residency to real life in Estonia

For many global entrepreneurs, e-Residency begins as a practical solution. But what often surprises founders is how compelling Estonia itself becomes once they’re inside the system. The ease of doing business, the responsiveness of government services, and the strong sense of inclusion from Estonia’s startup ecosystem frequently shift mindsets. 

Frequently, the reasons that many people choose to form an e-⁠resident business in the first place, rather than a local one, start to pervade other perceptions of non-business digital life. 

If Estonians can get married, register their car, and access private sector loyalty programmes digitally, why is it so much harder where I actually live? Why is it easier to file my business taxes in Estonia, than it is to sort out my relatively simple personal income tax at home…?

Perhaps they visit Estonia for themselves, maybe to attend a hackathon or an event like the Latitude59 startup conference. Along the way, they inevitably learn how e-⁠Residency itself is part of an ecosystem of broad and flexible digital business support, enabling access to expertise, funding, mentorship, community, education, and so much more… With opportunities to be found in collaboration too, with fellow digital entrepreneurs in Estonia or anywhere in the world. 

“The Estonian living standards and way of life, as well as the startup ecosystem, is attractive,” Ülane reflected, “but the EU market represents growth, and when that is combined with the training and mentoring that goes on in the accelerator programmes, the advantages for tech talent in particular is a big motivator.”

e-⁠Residency and the Estonian Startup Visa: A powerful combination

Estonia’s e-⁠Residency and Startup Visa programmes serve different purposes –  one enables remote company management, the other supports physical relocation – but they’re part of the same ecosystem. Many founders start as e-⁠residents, building and running their businesses from abroad. As their companies grow, some choose to relocate and apply for the Startup Visa, while others begin with the visa if they know from the outset that they want to base their team in Estonia.

Some founders start as e-⁠residents, maybe spending years happily freelancing, or running their business remotely. Then if their business grows, and they want to relocate, they can apply for the Startup Visa. Others apply directly for the Startup Visa if their main goal is to move to Estonia and build their company there

Relocating can be complex due to EU regulations requiring local job postings and minimum salary levels when hiring from outside the bloc. “These income thresholds are challenging for startups, because in the early stage of building a company you might put more emphasis on share options than giving them a high salary,” Ülane pointed out. Because equity doesn’t count toward the threshold, Estonia’s Startup Visa can be the best route for e-⁠residents who want to bring in essential team members on the ground.

Together, these programmes reflect how founders actually operate: combining tools and adapting to changing needs. Estonia doesn’t force a binary choice, it offers a flexible path for ambitious entrepreneurs at every stage. Whether you stay remote or decide to relocate, the ecosystem is designed to help you build, grow, and contribute.