Estonian banking services have had a lot to do with the great technological success that this small Baltic country has experienced in recent years. Estonia has positioned itself as one of the great European destinations for starting new companies and businesses. And this sector specifically has had a lot to do with it.

Estonia has managed with great success to take its administration and much of the daily activities to the digital realm, becoming one of the leading technological powers in Europe. Today, thanks to programs such as e-Residency, anyone, anywhere in the world who meets a series of requirements, can acquire an Estonian ID that will allow access to the entire Estonian state infrastructure. 

These eases known as e-Solutions have brought great progress and development for Estonia, and the different banking services are constantly promoting the transition to these digital means. Estonia is increasingly looking to the future.

Today, according to data provided by the Estonian banking administration, 99% of monetary transactions are carried out online, with services that can be accessed at any time and from anywhere in the world. This is quite impressive.

Benefits of Electronic Banking in Estonia

-Lower costs of access and use of banking services.

-It is a lot more comfortable and saves a lot of time.

-Quick access to information anytime, anywhere.

-Great cash management.

-Zero tolerance when it comes to money laundering or terrorist financing. Your funds will be under safe, clean, and good care.

-The profitability of the Estonian banking sector has been among the strongest in the EU countries.

-Banks in Estonia offer a wide range of financial services from everyday banking to sophisticated wealth management and are also the biggest providers of leasing and factoring services.

-Estonian e-Residents can use a growing number of payment and banking services that are partnering with e-Residency.

-Your Estonian bank account comes with an International Bank Account Number (IBAN), with which you can transfer money for free to other countries in the Single Euro Payment Area (SEPA). That includes all countries in Europe, including those who currently are not EU members.

Contact us

Who Can Open a Bank Account in Estonia?

Although Estonia promotes foreign investment, the opening of new businesses and the entry of capital, opening a bank account in an Estonian bank can be complicated, mainly due to the "Know Your Customer" (KYC) policy in the country, which means that anyone interested in this process must go to the bank's headquarters for an introductory interview. All this is even though the applicant has an E-Residency card.

However, and we will talk about this later, it is not impossible to open a bank account in Estonia. Certain banks are quite friendly and committed to supporting investors and entrepreneurs in the maintenance and management of their company's funds.

If you are an investor or entrepreneur and own a business in Estonia, thanks to its huge online presence, high quality, and speed of internet and regulations regarding banking laws, you can choose to open an account in the so-called "Fintech Solutions", which are financial services or "digital banks", which have banking licenses or work with entities that have them.

The main point of these entities is that they generate the conditions so that as an entrepreneur, you can easily and securely manage your company's funds. Either to receive or make payments, manage profits, and even for company expenses. However, what are the main advantages of these digital entities? It's time to know them:

-Their opening processes are significantly faster than in traditional banking entities.

-You receive an International Bank Account Number (IBAN), which, among other benefits, allows you to make payments and money transfers to all European Union countries without worrying about surcharges or tax rates.

-These services offer accounts in different types of currencies, so you can open accounts to manage funds in dollars, euros, Esterline pounds, etc.

-The beneficiary of the account can opt for debit and credit cards.

-You don’t need to be in Estonia to get your account.

According to many experts, the best advice for investors and small entrepreneurs who wish to take advantage of the opportunity offered by Estonia to establish new businesses is to open an account in a digital institution, as these allow you to carry out all the operations necessary for the maintenance and management of your company's funds, without the need to go through large bureaucratic processes and especially, without the need to make a long and expensive trip to Estonia.

Thanks to programs such as E-Residency, and Fintech Solutions, or Digital Banking, it is much easier to start a new business in Estonia, with all the potential gains that this decision can bring. Setting up and managing your company completely remotely is an unprecedented advantage, which brings nothing but benefits for investors, and only reinforces Tallin’s commitment to providing opportunities for investment in the country.

There are different entities capable of providing these kinds of services in Estonia and a big part of the world. However, we will concentrate on 2 of the most relevant ones: Wise and Revolute.

-Wise: with this platform, you will be able to transfer and spend money cheaper than traditional banks, and receive money around the world for free. One of the main advantages of Wise is its great exchange rate. This platform works worldwide. That means that you will be able to receive payments and do business in several countries without having to worry about different currencies or exchange rates. 

Wise has no monthly fees, only a commission between 0.35-2% when changing currencies, and a small fee of EUR 0.60 each time you transfer money from a local account to your Wise account.

This is a great option for you and your business, and it is really simple to use. To get your account, all you need to do is to sign up online, or in the Wise app, with an email, or a Google, Facebook, or Apple account.

-Revolut: Revolut is a British online bank considered as one of the first international “fintech solutions”. Its business is based on bank accounts without commissions and divided into free or monthly fees depending on what benefits the customer wants. The accounts, despite being in the UK, can be used in any.

The process of opening a Revolut account is quite simple. Applicants must apply to the app or website and fill out a form with their personal information.

How to Open a Bank Account in Estonia?

Despite being a longer and more complex process than the one carried out by the so-called "Fintech Solutions" or "Digital Banks", there are banks in Estonia that open accounts for non-residents. Starting a new business in this country is quite simple, but opening a bank account is another story.

For many banks, being an e-Resident is not enough when applying for opening a bank account. In addition to this, banks have a “Know Your Customer” (KYC) policy, which forces anyone wishing to obtain a bank account to have to go to Tallinn for an interview with the institution.

Despite these hurdles, these banks are open to working with non-residents, and if you are a world traveler and want to get to know this beautiful city that combines modern and classical architecture, a great atmosphere, and an interesting lifestyle, you won't mind getting to know Estonia.

Estonian banks require you to present certain documents when opening a bank account for you or your business in the country. These are:

-Passport or EU national ID card.

-Proof of address or your Estonian E-Residency ID. 

-Proof of connection to Estonia. This is for no-citizens/residents. You may fulfill this requirement with a signed residential lease agreement, signed employment contract, or a school certificate.

Besides all those requirements, the Estonian banks are likely to request for licenses for your business, evidence of your physical office, number of Estonian employees, and of course, proof of the company's activities in Estonia, and the face-to-face interview with the bank’s staff.

As a foreign investor who is starting a new business in Estonia, the largest banks of the country are very committed to security and transparency. They will help an e-Resident to open a bank account in Estonia, as long as the applicant can prove the profitability of their business, their non-involvement in money laundering or terrorist activities, and most of all, that they will be beneficial to Estonia.

Opening a bank account in Estonia is a step towards setting up your new company. This Baltic country is committed to creating conditions for foreign capital holders to invest in the country. Its tremendous growth in telecommunications, tourism, IT technologies and many more make Estonia a must-see destination for those who wish to generate high profits in a stable and private property-friendly environment.

At Mundo we want you to succeed in forming your Estonian company, so we can help you with everything you need to start generating the profits you expect. Contact us now!

Contact us