Why Estonia Is a Strategic Gateway for Brazilians in Europe
Estonia is a small country with just 1.3 million inhabitants and an area similar to that of the state of Rio de Janeiro, but with a notable difference: while Rio has about 16 million residents, Estonia shines with its efficiency, innovation, and digitalization. It's no wonder it's known as the "digital nation." For many Brazilians, the country has become a strategic gateway to start a business and settle in Europe.
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The Purpose of the Event and the Context
The meeting organized by Bloco and the Brazilian digital community aimed primarily to explore the opportunities that Estonia offers to those wishing to expand their businesses or start a new life in Europe. With pizza, networking, and straightforward presentations, the evening was dedicated to demystifying questions like "Why Estonia?" and "What makes this country a viable option for Brazilians?"
Additionally, the event highlighted the importance of E-Residency, a digital identity that allows you to open and manage a company in Estonia from anywhere in the world. But that's just the beginning. Let's explore what makes Estonia a standout point on the European scene.
Where Is Estonia Located?
If you open a map of Europe and look for this small country, you're likely to have difficulty locating it. Situated to the north of what's called Eastern Europe, Estonia borders Russia and Latvia and is separated from Finland by the Baltic Sea. Although geographically positioned in the east, many Estonians prefer to identify with the north due to cultural and historical proximity to the Nordic countries.
There's something fascinating about Estonia's history. According to local legends, Vikings set out from their Estonian islands to conquer the world, later returning to reclaim their lands. This spirit of resilience and reinvention permeates the country's culture to this day.
Digitalization: The Estonian Revolution
Thirty years ago, when Estonia gained its independence from the Soviet Union, the country decided to look to the future. The question was simple: how to ensure the sovereignty and survival of a small, vulnerable nation? The answer was bold: total digitalization.
In 2001, the X-Road was created—a decentralized infrastructure that connects all government institutions and allows citizens to access public services digitally. This system is so advanced that even the servers of the Estonian government are located outside the country, stored with backups at the European Commission in Brussels.
Through this infrastructure, Estonia eliminated information silos, decentralized data, and allowed its citizens to authorize the use of personal information with complete control. Today, 98% of the population has a digital identity, 95% file taxes online in less than three minutes, and 100% of public services are available digitally.
For those accustomed to Brazilian bureaucracy, it's impressive to know that opening a company in Estonia can be done in just 15 minutes, without the need for an accountant.
E-Residency: A Digital Passport for Business
Launched in 2014, the E-Residency program made Estonia the first country in the world to offer a digital identity to non-residents. This digital ID card allows entrepreneurs to open a company in the European Union, sign documents, and manage businesses remotely without needing to visit the country.
Although it doesn't grant citizenship or physical residency, E-Residency is perfect for those who want to test the European market or operate a digital company. The program has already attracted over 118,000 e-residents from around the world, including 1,300 Brazilians who have opened 379 companies in the country.
Advantages of Doing Business in Estonia
Starting a business in Estonia has many advantages. Let's discuss some of the main ones:
Simple and Clear Taxation:
Estonia adopts a flat tax rate of 20% (which increased to 22% after the pandemic and will be 24% in 2025) on distributed profits. If you reinvest the profits in the company, the taxation is zero—a unique policy that encourages sustainable growth.
Low Cost to Start:
Unlike Switzerland, which requires an initial deposit of 100,000 Swiss francs to open a company, in Estonia, only 2,500 euros are needed. And the best part: this amount only needs to be deposited when the company distributes profits for the first time.
Complete Digitalization:
Digital signatures in Estonia eliminate the need for notaries and paper documents. Everything can be done online, from opening the company to filing taxes.
Support for Startups and Innovation:
With the Startup Visa, entrepreneurs can move to Estonia with their entire family and receive support to expand their businesses. Additionally, the country has the highest number of unicorns (startups valued at over one billion dollars) per capita in the world, including companies like Skype, Bolt, and Wise.
Easy Access to Europe:
Establishing your company in Estonia means access to the European market, with its unified regulations and a vibrant innovation ecosystem.
The Startup Visa: An Invitation for Entrepreneurs
For those who want more than just operating remotely, the Startup Visa program offers the opportunity to physically move to Estonia. The initial visa is valid for one year and can be renewed for three consecutive years. After eight years, there's the possibility of applying for European citizenship, although Estonia doesn't allow dual nationality.
One of the unique features of the Startup Visa is that there's no limit to the number of partners or family members who can be included in the program. This means that the entire team of founders and their families can benefit from the residence permit.
Additionally, Estonia offers support through the International House and its Work in Estonia program, a center where newcomers can resolve everything from assistance with opening bank accounts to cultural and professional integration.
Innovation and Access to Investments
Estonia is known for its culture of innovation. Events like Latitude 59, one of Europe's main startup gatherings, offer prizes of up to two million euros for winning startups. The country also facilitates direct connections with investment funds and venture capital, often without bureaucratic barriers.
For early-stage companies, the Estonian ecosystem is especially attractive. There are cases of entrepreneurs who managed to raise hundreds of thousands of euros with little more than a prototype or a good idea on paper.
A Small Country with Global Ambitions
Although small in size, Estonia is big in ambition. Its model of digitalization and support for startups serves as an example to the world. With unique opportunities like E-Residency and the Startup Visa, the country positions itself as a viable and accessible gateway for Brazilians who wish to explore the European market.
For those seeking innovation, simplicity, and access to the global market, Estonia offers more than opportunities; it offers a vision of the future. Whether it's to open a business, operate remotely, or move with the family, the country proves that with the right strategies, even a small nation can make a giant impact.