Estonia vs Ireland: where to incorporate?
Ireland has the lowest headline rate in the EU and a hidden entry fee: without an EEA-resident director you post a bond. Estonia charges 0% on retained profit and asks for no director at all. Figures verified August 2026.
Estonia vs Ireland: where to incorporate?
Ireland has the lowest headline rate in the EU and a hidden entry fee: without an EEA-resident director you post a bond. Estonia charges 0% on retained profit and asks for no director at all. Figures verified August 2026.
Estonia vs Ireland: where to incorporate?
Ireland has the lowest headline rate in the EU and a hidden entry fee: without an EEA-resident director you post a bond. Estonia charges 0% on retained profit and asks for no director at all. Figures verified August 2026.
The short answer
The short answer
The short answer
Choose Estonia if
Choose Estonia if
Choose Estonia if
You reinvest most of what you earn, you sell into the EU and need an EU VAT number, or you want accounting, invoicing and contracts in one subscription.
Choose Ireland if
Choose Ireland if
Choose Ireland if
You distribute profit every year rather than reinvesting it, you want an English-speaking EU base with real credibility, or you already have an EEA-resident director.
The number that decides it
Ireland taxes trading profit at 12.5% as it is earned. Estonia taxes it at 0% until you take it out, then 22/78. Reinvest and Estonia wins; distribute every year and Ireland is cheaper.
Ireland taxes trading profit at 12.5% as it is earned. Estonia taxes it at 0% until you take it out, then 22/78. Reinvest and Estonia wins; distribute every year and Ireland is cheaper.
Estonia and Ireland at a glance
Estonia and Ireland at a glance
Estonia and Ireland at a glance
🇪🇪 Estonia
🇪🇪 Estonia
🇪🇪 Estonia
🇮🇪
🇮🇪
Ireland
Ireland
Ireland
Entity type
Osaühing (OÜ)
Osaühing (OÜ)
Private company limited by shares (LTD)
Private company limited by shares (LTD)
Minimum capital
€0.01, and you can defer paying it
€0.01, and you can defer paying it
€1 in law, usually €100 issued
€1 in law, usually €100 issued
State fee
€290 to register online — the €265 state fee plus the €25 registry API fee
€290 to register online — the €265 state fee plus the €25 registry API fee
€50 to file online with the CRO
€50 to file online with the CRO
Time to register
15 minutes to an hour — but the e-Residency card takes weeks
15 minutes to an hour — but the e-Residency card takes weeks
Usually five to ten working days
Usually five to ten working days
Can you do it remotely
Yes, fully — you collect the e-Residency card in person once
Yes, fully — you collect the e-Residency card in person once
Yes — but you need an EEA-resident director or a Section 137 bond
Yes — but you need an EEA-resident director or a Section 137 bond
Mandatory local roles
Legal address and contact person, both FIU-licensed
Legal address and contact person, both FIU-licensed
An EEA-resident director or a bond, a company secretary, and a registered office in Ireland
An EEA-resident director or a bond, a company secretary, and a registered office in Ireland
Tax on profit you keep
0%, for as long as you keep it
0%, for as long as you keep it
12.5% on trading profit, 25% on passive income — charged whether you distribute or not
12.5% on trading profit, 25% on passive income — charged whether you distribute or not
Tax on profit you take out
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
25% withholding on dividends as a rule, widely reduced by treaty and EU rules
25% withholding on dividends as a rule, widely reduced by treaty and EU rules
VAT and threshold
24%, register above €40,000
24%, register above €40,000
23%, register above €85,000 for goods or €42,500 for services
23%, register above €85,000 for goods or €42,500 for services
Mandatory audit
Not at founder scale
Not at founder scale
Not at founder scale
Not at founder scale
Annual filings
One annual report to the Business Register; monthly returns with payroll or VAT
One annual report to the Business Register; monthly returns with payroll or VAT
Annual return and financial statements to the CRO, plus a corporation tax return to Revenue
Annual return and financial statements to the CRO, plus a corporation tax return to Revenue
Banking as a non-resident
EU IBAN through Estonian banks, or Wise and Revolut
EU IBAN through Estonian banks, or Wise and Revolut
Irish banks are slow with non-residents; Revolut Business gives an Irish IBAN
Irish banks are slow with non-residents; Revolut Business gives an Irish IBAN
Market access
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
Year-2 running cost
From €124 for the mandatory address and contact person, plus accounting
From €124 for the mandatory address and contact person, plus accounting
The bond amortised, the company secretary, the registered office and accounting
The bond amortised, the company secretary, the registered office and accounting
What each one is
What each one is
What each one is
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
The Estonian private limited company. Registered fully online through e-Residency, taxed only when profit leaves the company, and inside the EU single market with an EU VAT number.
🇮🇪
🇮🇪
Private company limited by shares (LTD)
Private company limited by shares (LTD)
Private company limited by shares (LTD)
The Irish private limited company. An English-speaking EU company with the lowest headline corporate rate in the union, and the standard European base for US technology groups.
Setting the company up
Setting the company up
Setting the company up
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
Ireland
Filed online with the Companies Registration Office for €50 and usually registered within a week or two. The gate is not the filing — it is the requirement that at least one director be resident in the EEA.
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
Ireland
Filed online with the Companies Registration Office for €50 and usually registered within a week or two. The gate is not the filing — it is the requirement that at least one director be resident in the EEA.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
Ireland
€50 to the CRO and effectively no share capital, so the state cost is the lowest in this comparison. The real first-year cost is the Section 137 bond, about €1,600–2,000 covering two years, if you have no EEA-resident director.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
Ireland
€50 to the CRO and effectively no share capital, so the state cost is the lowest in this comparison. The real first-year cost is the Section 137 bond, about €1,600–2,000 covering two years, if you have no EEA-resident director.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
Ireland
An EEA-resident director — or a Section 137 bond instead — plus a company secretary and a registered office in Ireland. Estonia requires no director and no secretary.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
Ireland
An EEA-resident director — or a Section 137 bond instead — plus a company secretary and a registered office in Ireland. Estonia requires no director and no secretary.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
Ireland
Single and multi-shareholder LTDs, no nationality limits on shareholders. A single-director company must still appoint a separate secretary.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
Ireland
Single and multi-shareholder LTDs, no nationality limits on shareholders. A single-director company must still appoint a separate secretary.
Money, tax and filings
Money, tax and filings
Money, tax and filings
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
Ireland
12.5% on trading profit and 25% on passive income, charged in the year it is earned. It is the lowest headline rate in the EU, and it applies whether the money stays in the company or not.
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
Ireland
12.5% on trading profit and 25% on passive income, charged in the year it is earned. It is the lowest headline rate in the EU, and it applies whether the money stays in the company or not.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
Ireland
25% dividend withholding tax as the default, but widely reduced or eliminated by treaties and the EU parent-subsidiary rules. Estonia charges 22/78 inside the company instead.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
Ireland
25% dividend withholding tax as the default, but widely reduced or eliminated by treaties and the EU parent-subsidiary rules. Estonia charges 22/78 inside the company instead.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
Ireland
23%, the highest rate in this comparison, with registration above €85,000 for goods or €42,500 for services — both well above Estonia’s €40,000.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
Ireland
23%, the highest rate in this comparison, with registration above €85,000 for goods or €42,500 for services — both well above Estonia’s €40,000.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
Ireland
Irish high-street banks are slow and document-heavy with non-resident directors. Revolut Business issues an Irish IBAN, and Wise works, which is how most small companies operate.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
Ireland
Irish high-street banks are slow and document-heavy with non-resident directors. Revolut Business issues an Irish IBAN, and Wise works, which is how most small companies operate.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
Ireland
An annual return with financial statements to the CRO and a corporation tax return to Revenue. Audit exemption covers small companies, but losing it through a late annual return is a real and common penalty.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
Ireland
An annual return with financial statements to the CRO and a corporation tax return to Revenue. Audit exemption covers small companies, but losing it through a late annual return is a real and common penalty.
Which one fits your business
Which one fits your business
Which one fits your business
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
You reinvest instead of paying yourself
You reinvest instead of paying yourself
Profit left in the company is not taxed at all, so every year you do not distribute is a year you do not pay.
You sell into the EU
You sell into the EU
An EU VAT number plus OSS and IOSS access is something a non-EU company cannot give you.
You want one bill for the back office
You want one bill for the back office
Accounting, invoicing, contracts and e-signing in one subscription instead of four suppliers.
🇮🇪
🇮🇪
Ireland
Ireland
Ireland
You distribute profit every year
You distribute profit every year
If nothing is reinvested, 12.5% as you earn beats 22/78 on the way out.
You want an English-speaking EU base
You want an English-speaking EU base
Contracts, courts and accountants all work in English, and US clients recognise the jurisdiction.
You already have an EEA-resident director
You already have an EEA-resident director
With that box ticked the bond disappears and Ireland becomes genuinely cheap to start.
Where Estonia loses
Where Estonia loses
Where Estonia loses
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
The lowest headline rate in the EU
The lowest headline rate in the EU
12.5% on trading profit is lower than anything Estonia charges on distributed profit.
An English-speaking EU base with real credibility
An English-speaking EU base with real credibility
Ireland is where US technology groups put their European headquarters, and it shows in how customers and banks treat you.
Much higher VAT thresholds
Much higher VAT thresholds
€85,000 for goods and €42,500 for services against Estonia’s €40,000 — small companies stay out of VAT longer.
How incorporation with Enty works
How incorporation with Enty works
How incorporation with Enty works
Open with e-Residency
Open with e-Residency
1-3 days
€60
+ €290 state fee
1
5-minute application on Enty
2
We file directly with the Estonian registry
3
Company registered!
1-3 days
Plan to get an e-Residency card? Buy incorporation now and get €150 off
We lead you through the whole process
No e-Residency yet
No e-Residency yet
14 days
Fastest formation with a notary on the market
€1,000
+ €290 state fee
1
10-minute application on Enty
2
20–30 min video call — identity check and notarisation, fully online
3
We file directly with the Estonian registry
4
Company registered!
14 days
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Methodology and sources
Methodology and sources
Methodology and sources
CRO filing fee of €50 and the company secretary requirement from the Companies Registration Office and the Companies Act 2014. The Section 137 bond requirement and its market price of roughly €1,600–2,000 per two years from Irish corporate service providers. The 12.5% trading rate, 25% passive rate and dividend withholding from Revenue. VAT thresholds of €85,000 for goods and €42,500 for services from the same source.
Estonian state fee of €290 — the €265 registry fee plus a €25 API fee. Cost comparisons are computed in our own cost model, not quoted from third parties.
Figures verified 21 August 2026.
Figures verified
Frequently asked questions
Frequently asked questions
Frequently asked questions
What is the Section 137 bond and do I need it?
Every Irish company needs at least one director resident in the EEA. If none of your directors is, you must instead hold a Section 137 insurance bond — roughly €1,600–2,000 covering two years.
Estonia has no equivalent requirement and no equivalent cost.
What is the Section 137 bond and do I need it?
Every Irish company needs at least one director resident in the EEA. If none of your directors is, you must instead hold a Section 137 insurance bond — roughly €1,600–2,000 covering two years.
Estonia has no equivalent requirement and no equivalent cost.
What is the Section 137 bond and do I need it?
Every Irish company needs at least one director resident in the EEA. If none of your directors is, you must instead hold a Section 137 insurance bond — roughly €1,600–2,000 covering two years.
Estonia has no equivalent requirement and no equivalent cost.
Is Ireland’s 12.5% better than Estonia’s 0% on retained profit?
It depends entirely on whether you reinvest. Ireland charges 12.5% on trading profit in the year it is earned, whether you touch it or not.
Estonia charges nothing while the profit stays in the company and 22/78 when it leaves. Reinvest and Estonia wins; distribute everything every year and Ireland is cheaper.
Is Ireland’s 12.5% better than Estonia’s 0% on retained profit?
It depends entirely on whether you reinvest. Ireland charges 12.5% on trading profit in the year it is earned, whether you touch it or not.
Estonia charges nothing while the profit stays in the company and 22/78 when it leaves. Reinvest and Estonia wins; distribute everything every year and Ireland is cheaper.
Is Ireland’s 12.5% better than Estonia’s 0% on retained profit?
It depends entirely on whether you reinvest. Ireland charges 12.5% on trading profit in the year it is earned, whether you touch it or not.
Estonia charges nothing while the profit stays in the company and 22/78 when it leaves. Reinvest and Estonia wins; distribute everything every year and Ireland is cheaper.
Do I need a company secretary in Ireland?
Yes. Every Irish company must have a company secretary, and if the company has only one director the secretary has to be a different person or a corporate provider.
Estonia requires no secretary at all.
Do I need a company secretary in Ireland?
Yes. Every Irish company must have a company secretary, and if the company has only one director the secretary has to be a different person or a corporate provider.
Estonia requires no secretary at all.
Do I need a company secretary in Ireland?
Yes. Every Irish company must have a company secretary, and if the company has only one director the secretary has to be a different person or a corporate provider.
Estonia requires no secretary at all.
Can I register an Irish company entirely remotely?
Yes, the filing itself is online and costs €50.
What you cannot avoid remotely is the EEA-residency condition for directors — you either have such a director or you post the Section 137 bond.
Can I register an Irish company entirely remotely?
Yes, the filing itself is online and costs €50.
What you cannot avoid remotely is the EEA-residency condition for directors — you either have such a director or you post the Section 137 bond.
Can I register an Irish company entirely remotely?
Yes, the filing itself is online and costs €50.
What you cannot avoid remotely is the EEA-residency condition for directors — you either have such a director or you post the Section 137 bond.
How do the VAT thresholds compare?
Ireland is more generous: VAT registration starts at €85,000 for goods and €42,500 for services, against €40,000 in Estonia.
The rates are close — 23% against 24% — but the thresholds mean small companies stay outside VAT for longer.
How do the VAT thresholds compare?
Ireland is more generous: VAT registration starts at €85,000 for goods and €42,500 for services, against €40,000 in Estonia.
The rates are close — 23% against 24% — but the thresholds mean small companies stay outside VAT for longer.
How do the VAT thresholds compare?
Ireland is more generous: VAT registration starts at €85,000 for goods and €42,500 for services, against €40,000 in Estonia.
The rates are close — 23% against 24% — but the thresholds mean small companies stay outside VAT for longer.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported