Estonia is a small, modern, and welcoming country on the Baltic Sea coast. It combines Scandinavian minimalism, European comfort, and a unique cultural heritage, making it an attractive destination for living and doing business, especially for citizens of Russia and CIS countries.

Obtaining a residence permit (RP) through company registration in Estonia remains one of the fastest and most effective ways to become a resident of the European Union.

How the Business-Based RP Process Works

After establishing a company in Estonia, the founder or board member can obtain a residence permit for up to 5 years with the option of renewal (previously stated as 2 years). Upon issuance or renewal, a residence card is provided, which includes personal information, registered place of residence, work authorization, photo, and biometric data.

The opportunity to apply later for permanent residence (PR), Estonian citizenship, and an Estonian passport remains valid.

Residence permit issuance is governed by the updated 2025 Aliens Act (Välismaalaste seadus).

Investment Requirements (Effective 2025)

• Sole proprietors (self-employed): from 16,000 EUR

• Private limited companies (OÜ): from 65,000 EUR (previously misreported as 65,500 EUR)

• Major investors: from 1 million EUR

Additionally, the employer must maintain actual business activity for at least 12 months.

New Requirements for Long-Term RP and Citizenship (as of mid-2025)

For temporary RP with the option to transition to PR:

• At least 3 years of actual residence in Estonia

• Estonian language proficiency at A2 level

• Completion of an integration/adaptation program

For long-term RP (permanent residence):

• At least 5 years of residence in Estonia under RP

• Estonian language proficiency at B1 level

Additional Notes:

• All applications must be submitted in Estonian or English (Russian-language submissions are no longer accepted)

• A “one-stop-shop” electronic system is now in place for submission and processing of applications

RP Options for Startups
Startups benefit from a simplified procedure to obtain a residence permit for up to 5 years without mandatory share capital requirements.

Key Takeaways

Obtaining a residence permit through business remains a valid and reliable relocation path to Estonia. However, from 2025 onward, the requirements have become stricter, particularly regarding language proficiency and the residency period needed for permanent residence and citizenship. It is important to carefully consider all legislative updates when preparing documentation.