How to start a company in Estonia for productive engineers

What are the benefits of Estonian e-residency? If you're a freelancer, you may be interested in finding out why I started a company in Estonia, and how to do it in the easiest way possible. One aspect of thier work that many productive engineers don't think about is money and company structure. Could you save on taxes by running your salary through a company in Estonia? In my case, the answer was yes.

STEPS FOR STARTING A COMPANY:

TIMESTAMPS:
0:00 Intro
0:23 Why start a company in Estonia? Reason #1: Taxes
0:57 Reason #2: Control
01:41 Reason #3: Remote-friendly
02:23 Reason #4: The Cool Factor
02:58 Logistics: should you pay someone to setup your company?
03:54 Features and benefits of Xolo
07:23 Xolo Leap Pricing
07:49 Summary: How to start an Estonian company

SITES SHOWN IN THE VIDEO:

OTHER RESOURCES:

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// ABOUT ME

// APPS I USE

// GEAR

// WANT TO SUPPORT ME?

[andresencolombia]

please share some more information regarding stonian companies, like which type of company can be suitable for freelance software developer or for somebody who does trading or both and how about droppshipping. Thanks !

[LittleBigPoet]

Thank you for this video. If I understand, E-residency helps with paperwork but you still pay local taxes in whatever country you're in, which is fair enough.

I was wondering if this is still useful for a business selling online courses, or if it is only useful for freelancers??

[rockorosso]

hi Nicole, I am wathing your video quite late, so i miss the chance of using the link to register in xolo, any way to get it?

[QamarZaman-px]

Hello. Please your so good. Zaman Australia. And. Good morning

[hdubbs]

Thank you for your efforts--your production values are wonderful, but the way you consolidate information really sets you apart. The tags that serve as a "loading" bar is a very nice touch. Your channel is a real gem!

Also is that a d20 shirt? It's very cute!
Best of wishes to you,
H

[CreatrixTiara]

The Australian tax rules for deductions are pretty friendly - hell if anything I've managed to get more deducted than I thought. They also have a tax-free threshold where if you haven't hit that earning cap in a tax year, then no taxes for you. (Centrelink/social security is a whole other story)

[QamarZaman-px]

Hello. Please I’m very happy now. Please help me I’m coming to. Visit. Zaman Australia

[robertchen]

Hi, Nicole!Thanks for the great video! I have a question about company type.
What is the difference between a private limited company and a sole proprietorship in taxation or business？
I prefer sole proprietorship because I can get a residence permit for less money，but most digital nomad perfer private limited company. It really confuses me.

[Ciphrzer]

In the US you can deduct your expenses, including equipment. Money that you reinvest into the company isn't taxed. It's not a unique Estonia thing

[DesiInWonderland]

Hey. Thanks, Nicole, for your video.
I am current resident of Germany and looking to start a company in Estonia but I am bit confuse in some of the stuff.
1.) For ÖU, you need to have 2500 capital. Do we need to deposit them beforehand, or this is something which we can at some later point.
2.) If I am earning less than 40k euros per annum. That means I don't have to apply for VAT, but can I do busineess with other EU countries without VAT number ? I know it is a tax related question, but you can answer based on your experience. I will not take it as a tax advise.
3.) As long as I am not taking any money out of My company, that means I don't have to pay any Tax on my yearly profits. Am I right ?

[liv-oivg]

As I understand it there's a small mistake: You need to pay the e-residency fee once every 5 years to renew it, instead of never again.

[asaara]

Can you share an updated referral link? I mean you would earn too

[bboure]

Thanks for this great video!

I just opened my OÜ as well! I do have a question though which you might be able to help with since you lived in the Netherlands; and it might help others at the same time.
I am currently living in Spain but I am considering moving to another country soon (one of the reasons I chose Estonia for my company; I wanted a remotef-riendly and location independent solution). On my list of possible next destination is: The Netherlands!

I was wondering if you could advise on a few things:
How did you setup your "local" tax situation and pay yourself a salary (in NL)? i.e.: Should I become a freelance (ZZP) and invoice my own company in Estonia? This is my first intuition, but I'm a bit worried about triggering Permanent Establishment and all the consequences it has.
Could you share your own experience on that matter?

Bonus question: How about paying dividends?

Thank you!

P.S.: I also used Xolo and used you referral link, I hope you got your Bonus. :)

[giftegwuenu]

Congrats on 1k!!!! 🎉Thanks for sharing this I keep learning new things from you.

[RhapsodeMEDIA]

loved one ..am an e-resident lets connect together ..

[nates]

Hey Nicole, thank you so much for this video! Do you have to pay taxes in NL with this setup on your freelancing income? Do the NL authorities even need to be aware of it?

[fmkoba]

hey Nicole, one more for your upcoming AMA, you have your company in Estonia, so I presume your company’s bank account is also from there, but don’t you pay taxes again when wiring your money to the country you’re currently living in?

[YasarHabib]

Hi Nicole, do you have an updated link for Xolo?

[dayana]

Thanks so much for this info, I knew about the Estonian Residency but this will make things easier!!

[DecorPremiumGifts]

thank you so much!! Great information and explanation