Any e-Resident visa holders here?

I am in the process of launching my Micro SaaS in few months. I am building my Micro SaaS even I am full time employee. I have a very simple question on monetization (New to this). Has anyone here went by the path of e-Resident (Estonia) already? I am mainly asking from the taxation (Full time employee + Side hustle) perspective?

Would be great if you share some insights on this line.

  1. 1

    I am, and I have a business entity with https://www.xolo.io
    Feel free to ask questions

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      Thanks. Great to hear from you on this. I am from India and I am building my Side hustle even I am employed full time. I have some question on the financial operation + taxation side. Since I am already paying tax to Indian govt through my employer, how would my side hustle process will be managed with respect to the taxing process. If I register my e-residency, will I have to pay double tax?

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        Find out if there is a double taxation agreement between the two countries. E.g. Germany and Estonia have one (I am German)

        Germany has some tight taxation rules. So if I operate from Germany, I need to apply German taxes, even if I use my Estonian business entity. It's sad. So it works better for digital nomads.

        Upside: Xolo takes care of everything in Estonia and the accounting is dead easy. So were it not for the German laws I would be happy with it.

        So for India you have to find out if you are allowed to operate a foreign business entity while residing in India, or if they require you to pay local taxes. Legally the Estonian OÜ is similar to the British Limited. So get some professional input before founding.

        Generally, it goes like this:

        • Write your invoices with Estonian tax number 20% VAT
        • Pay yourself salary, Estonia deducts 0 taxes, register it in your country as income tax
        • Pay yourself dividend, Estonia keeps 20%, your country probably also keeps some
  2. 1

    I just got an email that I am approved for E-residency and that my package will arrive soon.

  3. 1

    I’m an Estonian e-resident and my company is based out of Estonia. This post can help answer some of your questions: https://e-estonia.com/how-do-e-residents-pay-taxes/

    Feel free to DM me on Twitter if you need any clarification.

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      Thanks for your support. I will go through the link and get back to you if I need any more details.

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