I am a freelance software developer from France. I lead a few others which I hire as contractors to work for companies. I am thinking about opening a company in Estonia as it seems I would be less taxed according to this French article thanks to the e-resident program.
Mr. Filippe is a software developer. He wishes to develop a business of purchase/resale of sound equipment.
In 2020, he creates a company in Estonia and makes a profit of 100.000 euros per year. In 2025, he decides to stop his activity and to sell his business in order to obtain capital and to start real estate investment.
By locating his company in Estonia, Mr. Filippe saves 250,000 euros in taxes. By investing these savings at 10% per year, he could get an additional return of 25,000 euros per year.
Indeed, there are 0% tax on reinvested profits. That looks appealing however when I will close the company, I don't know if I would get taxed on the capital we would have made from the contract earnings.