.webp)
Estonia, a small European Union and European Economic Area member, lies at the center of the continent's cutting-edge technology and ideas. It has gained international notoriety for its startups and firms that have altered many of our online lives, such as Skype, Bolt, and Transferwise, to name a few.
Estonia is also at the forefront of remote work, thanks to its well-known e-residence program, which has turned this small Baltic country into a haven for foreign freelancers looking to tap into the European market and Estonia's efficient electronic bureaucracy.
Digital signatures, accessible tax solutions, citizen identity, and bureaucratic affairs are all examples of ways the Estonian government is continually looking for innovative methods to make its services more time and cost-effective.
Estonia is at the vanguard of the digital revolution, with its inhabitants using online services, electronic IDs, and integrated systems for several years. With hundreds of little islands and expansive forests, lovely architecture in the cities, and daily outings and excursions, the country is modest and picturesque.
Great universities (particularly in the capital, Tallin, and Turku), as well as a vibrant social scene, with friendly Estonians and a large influx of foreign professionals looking for well-paying positions.
Estonia is an appealing choice for individuals seeking more personal destinations and an alternative to behemoths such as London, Paris, Berlin, and Barcelona.
And so, we have brought this tutorial that will provide you some guides on how you can get started and opening your bank account in Estonia today.
How to Open an Estonian Bank Account Online as a Non-Resident
Can I open a Bank Account in Estonia as a Non Resident?
Yes. While many European Union countries restrict non-EU citizens from opening bank accounts within the union, Estonia is one of just a few European countries that allows non-EU citizens to do so.
That said, you'll need to show that you have a connection to Estonia, such as owning property or starting a business there, or working there.
It's also a good idea to look into e-residency, which doesn't guarantee that you'll be able to open a bank account but may make things easier. EU citizens, on the other hand, will encounter far fewer barriers.
Am I eligible to Open a Bank Account in Estonia?
When it comes to opening a bank account, Estonia ranks among Europe's most expat-friendly countries. You can probably create a bank account if you're 18 or older, have a valid passport, and can prove you have a connection to the country.
The most significant stumbling block is proving your link to Estonia, and each bank must decide what constitutes a connection.
What Documents are Needed to Open an Estonian Bank Account Online?
To open a bank account in Estonia, you'll need the following documents:
- EU national ID card or passport
- Proof of address or e-residency in Estonia (if applying from outside Estonia)
Keep in mind that e-residency is not the same as being an Estonian resident, and you may not be qualified for a bank account just because you have an e-residency.
- Non-citizens and inhabitants of Estonia must show proof of their ties to the country.
A signed home lease agreement, a signed job contract, or a school enrollment certificate are all acceptable forms of verification.
Not a native speaker of Estonian? No problem—the majority of banking services and assistance are available in both English and Russian. So you can have to chat with an English Assistant.
Top Banks in Estonia
International banks are well-represented in the country, and these banks handle the financial affairs of international firms in Estonia. You can also choose from a number of banking institutions in Estonia. The following is a list of the country's most popular banks:
- Swedbank is noted for its user-friendly mobile and internet banking services, as well as the country's largest ATM and branch network.
- SEB Bank offers all clients over the age of 18 a current account with which they can perform all standard transactions, including as payments and purchases, using a contactless debit card. You obtain a regular private account after you become an e-resident. They have an English phone line if you have any questions.
- TBB Bank is an Estonian bank that offers personal and business accounts, as well as electronic banking and customer support in both Russian and English. Payments, cash transactions, bank cards, deposits, Internet and mobile banking are the default operations with their accounts. Clients can keep money on your accounts in a variety of currencies. TBB accepts cash and wire transfers, as well as checks and a variety of accounts for young customers, non-residents, and elderly.
- LHV Bank is another Estonian bank that operated entirely electronically until 2015, when it opened its first physical cash machine. The application procedure is quick and simple, and it accepts a variety of payment methods, including debit and credit cards, as well as choices for football fans who want to support Estonian football as well as shoppers looking for bargains.
Young Estonian banks like Inbank and Luminor, as well as an older institution like Coop Pank, are other banking possibilities.
How to Open a Bank Account: Normal Procedure
The procedure for non-residents to open a bank account in Estonia is as follows:
- Fill in the application form;
- Submit your documents;
- Consideration of the application and documentation by the bank (up to 10 working days);
- Conclusion of contract;
- Obtaining plastic card, pin-generator
- Account opening in the bank in Estonia.
Natural individuals must present the bank with their passport, driver's license, proof of salary, and proof of a causal link to Estonia.
Legal entities must draft a contract for the company's registration, charter, passport, and international passports of the beneficial owners. Additional documentation may be required by the bank's manager if necessary.
Law&Trust International will offer advice on tariff banking "packages," which will include a specific range of services and transactions for a monthly price. The law company ensures the security of the information acquired from clients.
Can I open a bank account abroad? What about at least online?
You must first become an e-resident in order to have an account established by the time you arrive in the nation. You will not be allowed to open a bank account outside of Estonia, including online, if you are not an Estonian e-resident.
Most Estonian and international banks, however, will allow you to open an Estonian bank account online, regardless of where you are in the globe, if you are an e-resident.
What about banking Fees?
Banking in Estonia, as in the rest of the world, comes with a set of fees that you may anticipate to pay for a variety of services and throughout the year. The following are some of the most popular fee types:
- Fees charged by ATMs
- Normal Bank Fees
- Fees for international transfers
Fees charged by ATMs
While there are no ATM fees if you use your own bank's ATMs, using an ATM from a different bank, whether in Estonia or overseas, usually incurs a fee. This varies by bank, but Swedbank, for example, charges 1 Euro plus 2.5 percent of the total transaction amount.
Normal Bank fees
EU citizens, for example, will pay 100€ to create an account at SEB, whilst non-EU citizens, such as Americans and Australians, will pay up to 400€.
Fees for international transfers are as follows:
Each overseas transaction with Nordea bank, for example, is subject to a cost of 6€ in addition to any exchange rate markup. As a result, your bank is very likely to charge you a fee for foreign money transfers, or at the at least, increase the exchange rate they offer you.
Other Options
If your firm will not be operating in Estonia or has any connection to the country, it may be a good idea to consider opening a virtual bank account, as they are more flexible than traditional brick and mortar banks.
Several suppliers offer digital bank accounts, which include an IBAN number, debit cards, and similar, if not better, security protections than traditional financial institutions. You can consider some other virtual bank accounts that can be created in any country and taken to any other country and still be functional.
MUST READ: How to Open an Online Bank Account In Any Country
What are some differences between online banks and physical banks?
One of the most significant differences between digital and traditional bank accounts and their creation processes is that digital bank accounts are created entirely online, eliminating the need for travel or personal visits.
Second, some "traditional" banks may not offer all of the capabilities that digital banks do. For example, you may need to go to the bank to make some decisions or take specific activities, but digital banks allow you to do everything online.
Many online banking platforms are established with specific client needs in mind – some are designed for bitcoin enterprises, while others are better suited to freelancers and digital nomads, as well as e-commerce stores.
This means that some digital banks may be better suited to your company's demands than others and are optimized for them.
One of the most significant changes is that digital banks have multi-currency accounts, which allow you to hold, receive, and transfer funds in other currencies while paying cheaper service fees.
PsP's allow for better payment integrations, allowing for speedier purchase/checkout times on your website than traditional banks. Most Estonian banks, for example, merely provide a link to their website to make such an action.
Finally, internet banks are neither permitted or able to lend out the funds in your account. This assures that your funds are yours and yours alone. As a result, many Fintech banks are unable to provide loans to businesses or individuals.
Final Thoughts on how to get an Estonian E-Residency Bank Account
Banks, on the whole, prefer to demonstrate a strong link to Estonia and are hesitant to open accounts for non-residents. You'll have to show proof of your Estonian ties.
Nevertheless, because the e-Residency program is focused on allowing business banking options, you can't open a personal bank account from abroad. We will also recommend contacting the bank directly before making any travel plans to Estonia.