Open a bank account in Estonia

If you want to open a bank account in Estonia, you should be aware of some important nuances—particularly how Estonian banks work with non-residents. Today, the requirements and documents requested by Estonian banks are quite similar.

However, depending on the client’s country of residence, the bank’s attitude and willingness to cooperate may vary.

Each bank has its own policy regarding the opening of an account for a non-resident in Estonia. Especially if the company is Estonian, but the founder and board member seeking to open the account are non-residents, the main requirement from banks is that the company’s business must be connected to Estonia.

At the present time—at the moment of applying to the bank, not in the future. We’re not talking about renting a virtual office or a registered address. What matters is a real economic and physical presence in the country.

Banks also refuse to open an account in Estonia if the ownership structure of the Estonian company includes an offshore entity.

What counts as a clear connection to Estonia for a company with a non-resident owner?

• Partners in Estonia (suppliers of goods/services, clients);
• Turnover in Estonia (which typically requires having a VAT number in Estonia);
• Paying taxes in Estonia (payroll taxes, VAT, dividend distribution);
• A residence permit in Estonia, at least for a board member;
• Local Estonian contractual employees;
• Renting a real office in Estonia;
• Renting a warehouse in Estonia;
• A startup visa and project approval from the Startup Committee (mainly for IT companies);
• A live website for the company (ideally localized for Estonia);
• Logistics of goods through Estonia.

All these factors are key to opening an account in Estonia. However, none of them guarantees a 100% approval. The final decision always rests with the bank. Even if all the above conditions are met, rejection is still possible. A personal visit by the company’s board member to the Estonian bank may also be required.

In practice, Estonian banks thoroughly examine any company that includes foreign residents in its structure. The decision to open an account for a non-resident is made only after analyzing the submitted information.

Estonian banks and cryptocurrency

Currently, Estonian banks are reluctant to work with such companies. In our opinion, this approach will remain until standardized and unified EU-wide legislation on cryptocurrencies is established.

For now, it is easier for banks to reject such clients to avoid issues with the financial inspection authority and potential fines—until the “rules of the game” are clearly defined. This stance is currently common among banks across the EU. As a result, payment systems that are open to working with crypto assets are gaining popularity.

Foreign bank account for an Estonian company

An alternative to opening an account in Estonia is to open one with a bank in another jurisdiction. In countries where the requirements are less strict and banks are more client-friendly.

Estonian law allows an Estonian company (OÜ legal form) to have a bank account in any other country without needing special notification or permission from Estonian regulators. Given the difficulties in opening a business account in Estonia, this can be a good solution.

Payment system account for an Estonian company

Another alternative to Estonian banks is to open an account through a payment service provider.

It’s possible to open an account in Estonia for your company with a payment system from anywhere in the world, online, within 1–3 business days. This is the fastest option for obtaining a payment tool for your company.

What should you know when opening a foreign business bank account?

• Jurisdiction – Foreign banks tend to prefer companies where the bank and the business registration jurisdiction match. It is virtually impossible today to open a European bank account for an offshore company.
• Business activity must be clear and understandable.
• Nationality of the ultimate beneficiary/director – Some banks refuse to work with individuals who hold citizenship of Russia, Ukraine, or Kazakhstan.
• Bank’s reputation, shareholders, and reporting. It is important to know who owns the bank and what type of banking activities it focuses on (retail, corporate, asset management, or lending). Pay attention to its rating and reviews.
• Jurisdiction risk. Make sure the country where the bank is located has a stable political and economic environment.
• Confidentiality, tax information exchange, and banking secrecy. Ensure that the legal framework supports the preservation of banking secrecy. Check whether your country has an agreement with the jurisdiction where you intend to open the account.
• Deposit insurance. If your goal is to open a deposit, check whether a deposit insurance system is in place in that country.
• Functionality and convenience. Think about usability. For instance, if you plan to use the foreign account to grow personal savings, be sure to check the minimum balance requirements, transaction fees, and how user-friendly the online banking platform is.
• Currency choice. Decide which currency you want to use for your foreign account. Many banks offer multi-currency accounts under a single account number. A multi-currency account lets you receive payments and make transactions in different currencies, switch between them, access favorable exchange rates, and potentially earn higher returns on savings.
• Language of service. Your capabilities multiply with the number of languages you speak. Choose a jurisdiction where you can communicate or where English is widely spoken.
• Security. Before entrusting your money to a bank, ask yourself:

– Will my money be safe?

– What anti-fraud measures does the bank implement?

– Does the bank have a deposit insurance system? (If you plan to open a deposit)

– What protection can the bank offer in the event of bankruptcy?

Products and services

Before you start comparing financial institutions, you should determine what kind of foreign account you want to open. A personal or corporate account? Or maybe for storing savings? Is internet banking functionality important to you? Can you open the account online? What currencies will be available? Is there Russian-language support?

Initial deposit

Almost all foreign banks, according to their internal tariff policies, require clients to maintain a minimum initial deposit or a non-reducible account balance.

For example, if you decide to open an account in a Swiss bank, you’ll need to make a minimum deposit of 10,000 CHF. Meanwhile, a bank in Liechtenstein may require a minimum balance of 5,000 EUR. However, some institutions do not require a minimum balance at all.