Build Your Company in the EU’s Most Digital and MiCA-Aligned Jurisdiction

Its regulatory framework for technology and crypto asset businesses is aligned with EU Regulation 2023/1114 on Markets in Crypto Assets (MiCA) and implemented nationally through the Crypto Asset Market Act (CMA), in force since 1 July 2024.

The competent authorities are the Estonian Financial Supervision and Resolution Authority (FSA) and the Financial Intelligence Unit (FIU). The FIU issued virtual currency service provider licences (VASPs) until 2024. Since 1 July 2024, authorisation of crypto asset service providers (CASPs) is performed by the FSA. FIU VASP licences remain valid during the transition period until 1 July 2026. After that date only FSA-issued CASP licences are valid.

Relevant legislation includes the Money Laundering and Terrorist Financing Prevention Act (MLTFPA, amended 2022), the CMA, MiCA and EU Regulation 2022/2554 on digital operational resilience (DORA).

The standard legal form is a private limited company (osaühing, OÜ). Minimum share capital is EUR 2,500. Incorporation can be completed online through Estonian e-residency. A local contact person is required if all board members are non-resident. For ordinary, non-regulated companies, there is no general residency requirement for directors.

Corporate income tax is 0 percent on retained earnings and 22% on profit distributions from 1 January 2025. Tax is charged at the moment of distribution. Dividends paid to non-resident companies are generally exempt from withholding tax, subject to anti-avoidance rules. The standard VAT rate is 22% from 2025.

This tax model is used by holding and technology companies because undistributed operating profits, development budgets, and reinvested capital are not taxed.

Estonia is a strong fit for technology companies, fintech founders and digital-asset businesses that need an EU-regulated home with a fully digital incorporation system. Companies that plan to operate across the European Economic Area, comply with MiCA from day one, or run platform-based products often choose Estonia because licensing, reporting and governance are aligned with EU supervisory standards.

The jurisdiction works well for teams that can maintain real management presence in the country. CASP-licensed businesses must have at least one resident director, a resident AML officer, a physical office and audited financial statements. Minimum capital starts at EUR 100,000 for exchange and custody businesses and EUR 250,000 for companies that also handle transfers. The state fee is EUR 10,000 and applications typically take six to eight months.

Estonia suits founders building long-term, regulated products: exchanges, custody providers, token platforms and multi-service fintech companies that want EU-wide passporting under MiCA once available. For businesses that cannot maintain resident management, audited accounts or significant capital, other jurisdictions may be more practical.