Opening an Estonian OÜ in 2026 is still one of the cleanest ways to run an EU company remotely. The low entry cost is real, but the headline price only tells part of the story. A founder should budget for the e-Residency card, the state registration fee, a legal address and contact person, banking setup, and accounting.
What is the minimum real setup cost?
The practical first-year base cost is usually around €615 to €815 before accounting. That includes the €150 e-Residency application fee, the €265 OÜ registration state fee, and roughly €200 to €400 for legal address plus contact person service when the management board is not resident in Estonia. This is the lean version. It does not include optional advisory, VAT registration, banking review fees, or monthly bookkeeping.
| Cost item | Typical amount | When paid |
|---|---|---|
| e-Residency application | €150 | Before company setup |
| OÜ registration state fee | €265 | During registration |
| Legal address and contact person | €200 to €400 | Annual |
| Accounting for a small active company | €100 to €250/month | Monthly |
| Share capital | from €0.01 per shareholder, often €1 or €100 | At registration |
Is the minimum share capital still €2,500?
No. That is old information. Estonia changed the rules in 2023. For a private limited company, the minimum required share capital is now €0.01 per shareholder. In practice, many founders set it at €1 or €100 because it looks cleaner in documents and keeps bank onboarding conversations less awkward. The important detail is timing: the selected amount must be contributed when the company is established. The old deferred share-capital model is gone.
There is one caveat. Very low capital is legally possible, but it does not make the company immune from commercial reality. If the company goes insolvent, creditors may still have routes to claim additional shareholder liability up to the old €2,500 reference amount in specific circumstances. For serious trade, B2B contracting, or credit applications, a symbolic €1 capital can look too thin.
What does the first year usually cost?
A realistic first-year budget for a small consulting, SaaS, e-commerce, or agency company is closer to €1,800 to €3,000. That includes the government fees, address/contact person service, basic accounting, banking setup, and some advisory time. If you need VAT registration, payroll, multi-currency reconciliations, or many monthly invoices, the budget goes up.
What are the ongoing costs after setup?
The company does not become free after registration. You must maintain a legal address/contact person where required, keep accounting records, file annual reports, and file tax declarations when you have VAT, payroll, dividend distributions, or other reportable activity. A dormant company may cost only a few hundred euros per year. A normal active company commonly costs €1,500 to €3,000 per year to maintain properly.
How does Estonian tax affect the budget?
Estonia is attractive because retained and reinvested company profits are not taxed like in most classic corporate tax systems. Tax is generally triggered when profits are distributed. From 2025, Estonia taxes distributed dividends at company level at 22/78 of the net distribution according to the Estonian Tax and Customs Board. That does not remove accounting obligations, but it does make Estonia strong for founders who reinvest profits.
When is Estonia not the cheapest option?
Estonia is excellent for remote founders, consultants, software companies, small cross-border B2B teams, and operators who value EU credibility. It is less ideal when your management, employees, warehouse, or real customer operations sit mostly in another country. In that case, tax residency, permanent establishment, payroll, VAT, and banking friction can erase the headline cost advantage.
FAQ
Can I open an Estonian company with €1 capital?
Yes. The legal minimum can be as low as €0.01 per shareholder, and many founders use €1 or €100. The chosen capital must be paid during registration.
Do I need a local Estonian director?
No. Foreign founders can own and manage an Estonian OÜ. If the management board is outside Estonia, a legal address and contact person are normally required.
Is e-Residency a tax residency?
No. e-Residency is a digital identity, not residence, citizenship, or personal tax residency.
Key official references used for this guide: the Estonian e-Residency knowledge base lists the e-Residency state fee as €150, the official state fee page lists OÜ registration at €265, and the OÜ/share capital guidance states the minimum share capital is €0.01 per shareholder. See e-Residency costs and fees, Estonian state fees, and share capital contribution rules.
This article is general information, not legal or tax advice. Company structure should be reviewed against your real place of management, customers, payroll, and banking needs.
