Estonia or Delaware: where should you start a business?
Estonia ranks higher in the index, 13 against 18. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Retained profits are not taxed. Distributed profits bear 22%, calculated as 22/78 of the net amount, and VAT is charged at 24%.
No Delaware income tax is due where no business is done in the state, but annual franchise tax applies. There is no state sales tax.
Set-up
The state fee is €265, although a 2022 notice gives €200. Share capital starts at €0.01 per shareholder, and review usually takes a day.
A corporation's filing fee starts at US$109. No standard processing time is published, but paid services offer 24-hour, same-day and faster filing.
On the ground
Board members need not be resident but must be able to sign the application digitally. A company with a registered address abroad must name a contact person.
Every company must keep a registered agent with a Delaware address, and no director needs to live in the state. There is no minimum capital.
Ownership
Beneficial owner data can be viewed by anyone on the e-Business Register portal. A restriction planned for 10 July 2026 was postponed.
Under FinCEN's final rule, effective 14 August 2026, companies formed in the United States are exempt. Only foreign companies registered there still report.
Residence
A shareholder investing at least €65,000 in the company's Estonian activities qualifies for a business permit. e-Residency gives no right to live there.
Owning a company confers no residence. The E-2 visa is limited to treaty nationals, and the EB-5 requires an investment from US$800,000.
Living and working
Currency
Euro.
US dollar.
Time zone
UTC+2, and UTC+3 in summer.
UTC-5, and UTC-4 in summer.
Personal tax
Income tax is a flat 22% in 2026, and gains on property transfers are taxed as income, with no separate capital gains tax.
Federal top rate 37% above $640,600 for a single filer in 2026; Delaware charges 6.60% from $60,000 and repealed estate tax in 2018.
Language
Documents submitted to a court must be in Estonian or translated into Estonian.
English is the official language of the United States under an Executive Order of 1 March 2025.
Flights
Wilmington (ILG) has Avelo flights to Florida and San Juan, and an American Airlines coach to Philadelphia, which serves Heathrow.
Estonia vs Delaware: common questions
Estonia: Retained profits are not taxed. Distributed profits bear 22%, calculated as 22/78 of the net amount, and VAT is charged at 24%. Delaware: No Delaware income tax is due where no business is done in the state, but annual franchise tax applies. There is no state sales tax.
Estonia: The state fee is €265, although a 2022 notice gives €200. Share capital starts at €0.01 per shareholder, and review usually takes a day. Delaware: A corporation's filing fee starts at US$109. No standard processing time is published, but paid services offer 24-hour, same-day and faster filing.
Estonia: Board members need not be resident but must be able to sign the application digitally. A company with a registered address abroad must name a contact person. Delaware: Every company must keep a registered agent with a Delaware address, and no director needs to live in the state. There is no minimum capital.
Estonia: Beneficial owner data can be viewed by anyone on the e-Business Register portal. A restriction planned for 10 July 2026 was postponed. Delaware: Under FinCEN's final rule, effective 14 August 2026, companies formed in the United States are exempt. Only foreign companies registered there still report.
Estonia: A shareholder investing at least €65,000 in the company's Estonian activities qualifies for a business permit. e-Residency gives no right to live there. Delaware: Owning a company confers no residence. The E-2 visa is limited to treaty nationals, and the EB-5 requires an investment from US$800,000.
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