The Real Cost of Running an Estonian OÜ: A Full Year Budget Breakdown
Every recurring and one-time cost, added up honestly.
The most common misleading number in e-Residency marketing is the registration fee. €265 is real and accurate. It is also the smallest cost you will pay, and it is a one-time payment. The ongoing costs are what determine whether the structure makes economic sense for your business, and they are what most guides bury in footnotes or leave out entirely.
This page adds everything up honestly: setup costs, annual recurring costs, and the variable costs that depend on your activity level. The numbers are realistic ranges drawn from publicly quoted provider pricing as of mid-2026, not marketing minimums.
One-time setup costs
| Item | Cost | Notes |
|---|---|---|
| e-Residency application fee | €150 | Non-refundable regardless of outcome |
| OÜ registration (state fee) | €265 | Paid to the e-Business Register at registration |
| Formation agency service fee (if used) | €250–600+ | Optional but commonly used; covers registration paperwork and initial setup |
| e-Residency kit pickup travel | Varies | In-person collection at an Estonian embassy; a real cost if one isn't nearby |
| Setup subtotal (with agency) | €665–1,015+ | Before any ongoing costs |
Annual recurring costs
| Item | Annual cost | Notes |
|---|---|---|
| Legal address and contact person | €100–400 | Mandatory if board is non-resident; often bundled with formation packages |
| Accounting (active company) | €960–1,800+ | €80–150/month is a realistic range for basic bookkeeping; complex activity or VAT registration increases this |
| Annual report preparation | €0–300 | Included in some accounting packages; zero-report-only services start around €50–150 for dormant companies |
| e-Residency card renewal | ~€20/year (amortized) | Cards valid for 5 years; renewal fee approximately €100 |
| Business account fees | €0–600+ | Wise Business: one-time setup ~€50, no monthly fee; Revolut Business: tiered plans; LHV: €300 setup + ~€360/year monthly fees for non-EU shareholders |
| Annual total (active, accounting included) | €1,200–2,800+ | Depending on accounting complexity and banking choice |
Costs for a dormant company
A dormant company with no revenue still has mandatory obligations. The minimum realistic annual cost for a properly compliant dormant OÜ is:
| Item | Annual cost |
|---|---|
| Legal address and contact person | €100–250 |
| Zero annual report preparation | €50–150 |
| Business account maintenance (Wise or Revolut basic) | €0–60 |
| Dormant total | €150–460/year |
Keeping a dormant company alive costs money every year. If there is no plan to activate it within a reasonable timeframe, closing the company properly is usually the cleaner choice.
Variable costs based on activity
These depend on what your company actually does:
- VAT registration and monthly returns: If you cross the €40,000 threshold (or register voluntarily), monthly VAT return filing typically adds €20–60/month to accounting costs, plus any input/output VAT flows to manage
- Payroll and board member fees: If you pay yourself a salary or board member fee, payroll tax reporting (TSD, due monthly by the 10th) and associated social tax calculations add complexity and cost
- Security/defence tax (2026 to 2028): Companies with actual profits owe quarterly advance payments on the 2% security tax. Zero for dormant or loss-making companies
- Corporate tax on distributions: 22% on gross distributions if you pay dividends. Not a "cost" as such, but a real cash outflow to plan around when doing dividend planning
The breakeven question
At a realistic ongoing cost of €1,200 to €2,800+ per year for an active company, the structure makes economic sense when the benefits it provides (EU credibility, tax deferral, multi-currency banking, EU client relationships) genuinely outweigh that cost against your alternatives. For a solo consultant billing €30,000+ per year to EU clients, the overhead is proportionally small. For someone billing €8,000 per year with no EU-specific benefit, it probably isn't worth it.
An Estonian OÜ is not a free or nearly-free EU company. It is a legitimately low-overhead EU company with real, recurring compliance costs. Understanding those costs before registration is more useful than discovering them after the first annual report deadline.
Frequently asked questions
Can I reduce costs by doing my own accounting?
Yes, for a simple dormant or very low-activity company. For an active company with real transactions, the risk of errors in Estonian accounting rules and XBRL annual report format typically makes DIY accounting more expensive in terms of time and correction costs than hiring a professional. The threshold where professional accounting pays for itself is lower than most founders expect.
Are these costs tax-deductible?
Accounting fees, address and contact person services, and banking fees are generally legitimate business expenses that can be recorded as company costs, reducing the taxable base if you are eventually paying corporate tax on distributions. How they interact with your personal tax situation in your home country depends on your specific structure and advice from your accountant.
What does closing the company cost if I decide it is not worth it?
Voluntary liquidation of an OÜ involves filing final accounts, settling any outstanding tax obligations, and submitting a deletion application. Costs vary but are typically a few hundred euros for a simple structure with no assets or liabilities. It is considerably easier to close a company that has been properly maintained than one with years of missing annual reports.