[onnimonni]

Thanks for the great blog post.

I'm very happy to be living and building business in Estonia instead. Establishing the company is easy and everything else except KYC meeting in bank can be done online. Also in Estonia companies don't pay any taxes on yearly profits. Almost all of the government officials speak fluent English except in the case where I wanted to have company owned car. Would highly recommend this option for others too if you can relocate easily. They even changed the rules in 2023 and now even 1€ initial capital is enough.

[novaRom]

Why relocation is needed? Can a EU citizen open a business in Estonia?

[onnimonni]

They certainly can. I think even people outside of EU can open companies in Estonia.

The problem is that you need to pay taxes in the country where the work was physically done. So if you have Estonian company while living in Germany typically the same taxes need to be filed and paid compared to having a GmbH in Germany. Plus you need to also do the taxes in Estonia as well so you would end up having double bureaucracy instead.

You can read about tax agreements between your country of residence and estonia to find out more. I'm not a lawyer and this is simplification and Can even be wrong but it's the best understanding I have so far.