Since the vote to leave the European Union there has been a sharp rise in the number of British people wanting to become digital citizens of Estonia, which allows them to register bank accounts in that country and set up an online business there.
One of the benefits of being an Estonian e-resident is that individuals can use ‘borderless digital banking’, meaning they can set up an online business without having to visit the country first.
This means that they can test out new business ideas without it costing them too much and without having to leave the UK. At the moment there are 3,000 businesses being managed by Estonia’s e-residents but it is hoped that with the introduction of a digital bank, many more firms will be launched there.
The residents of most countries, apart from the US, can create an e-residency business account, through which they can declare taxes online, sign documents digitally and send encrypted files.
In addition, business accounts registered with the company come with an EU international bank account number, heralding a “new era for location-independent entrepreneurs”, according to some commentators.
However, this is not the only borderless bank account to be launched lately; earlier this month, London-based fintech firm Transferwise announced it was creating a borderless account that works across countries and does not charge international transfer fees.
According to Transferwise, the account allows people in the UK and Europe to store money in 15 different countries and have local account numbers, as the account is not constrained by country or currencies and allows businesses “more freedom and control” over their finances and spending.