Much fanfare has been made of the Estonian government’s Official E-residency Program, which allows anyone to become a virtual resident of Estonia without physically living there, provided certain low-level requirements are met.
The scheme is still in its infancy but has already witnessed a surge in popularity as people seek increased economic mobility, while those outside the EU seek an easier way to access EU markets and participate in a free exchange of ideas and capital.
While the scheme does not provide anyone with an automatic right to reside in Estonia, it allowed them to have a foothold in the economy and benefit from having a business registered in a wealthy EU nation. Here’s why the scheme presents a possible future blueprint for the EU as an avenue towards solving current crises related to migration, trade barriers and legal disputes.
Free Route to EU Residency, No Drawbacks
The most important part of this is that the scheme works essentially as an online bonus, the bonus being that the recipient can enjoy the market access and protections of having a business or themselves (in case of self-employed freelancers) registered in the EU, for no cost. The scheme copies a methodology long used by other e-businesses, offering these benefits for signing up in a similar vein that a popular online casino bonus might do, such as the one at Betfair, which matches the user’s deposit up to £400. In the case of the Estonian programme, the user enjoys the bonuses, while the company (the Estonian government) enjoys the economic benefits of attracting skilled workers and primarily tech companies. The scheme’s early sign-ups include the French president Emmanuel Macron and the Japanese president, Shinzo Abe, which should highlight the value people see in this.
Building Bridges, Not Walls
Although the scheme does not automatically offer the ability to physically reside in Estonia, recipients are able to conduct business there, base their companies there, and enjoy access to the consumers and capital flows of the EU27. The Estonian government benefits from this in tax revenues and increased attractiveness as an innovation hub whilst acting as a stalwart against current alarming trends of isolationism and protectionism that are sweeping the continent. It’s a refreshing scheme aimed at opening doors, encouraging free exchange and reducing bureaucracy that hinders businesses. It’s hardly surprising that in the wake of the 2016 Brexit referendum result, a huge wave of British start-ups quickly registered in Estonia, aided by transnational UK-based bodies like TechLink.
A Scheme Suited to 21st Century Work
In 2018 work is no longer fixed, and the future prosperity of the EU depends on the increased mobility of people, goods, services and ideas. The term “digital nomad” is now commonplace in economic forums like the WEF and trade reports, as it denotes a fundamental shift in the way that talented people work and live in the rich world. The e-residency scheme facilitates this shift and makes it easier to conduct business on a continental scale, without threatening political stability. It serves as a role model for the way that the EU as a whole should be fun in the future, and we greatly look forward to the continued growth of this promising idea.
