e-Residency Business – Monthly Costs (How To Lower Them)

Once you have your e-Residency business up and running, there are no annual fees to be paid.

Assuming you don’t take care of accounting yourself, hiring an accounting service provider will be the only overhead directly tied to the e-Residency business.

How much are the monthly costs of operating an online e-Residency business?

Costs can be as low as 200€ per year; most businesses will pay in the range of 70-110€ (incl. taxes) per month.

e-Residency Costs

That’s a wide range.

If your business doesn’t generate more than a handful of transactions per month and less than 40,000€ in revenue annually, there is no need for monthly accounting. It can be done once per year.

You might be saying,

‘It is what it is. I am not going to limit my monthly transactions and reject the additional revenue only so I can lower costs for accounting!’

I agree! That would defeat it’s purpose.

However, knowing that the number of transactions is the main criteria when it comes to how much the accounting service provider is charging you, strategies can be applied to ‘manipulate’ that number.

How Accounting Fees Work

All e-Residency accounting services charge based on workload.

Whether you decide to go with Xolo (formerly LeapIN), Nordic Consult or another provider – the pricing is somewhat similar.

The longer it takes them to take care of accounting for your business, the more you will be charged.

LeapIN eresidency Estonia
LeapIN’s monthly plans starting at €59 per month (excl. tax). In-depth LeapIN review here.

Processing transactions (accounting) just happens to take up a lot of time.

This is true for most e-Residency businesses – unless you operate a complex company structure, hire employees, distribute shares or equity.

You get the idea …

e-Residency Monthly Costs

Whether or not you can ‘manipulate’ the number of transactions will depend on the nature of your business.

If you are selling a digital product or service, you can most definitely apply this strategy.

To understand what I am going to explain, you have to know the difference between a payment processor and a marketplace.

Payment Processor

A payment processor does what it’s name suggests. It processes payments. Customer makes purchase, payment processor handles the transaction and sends the funds directly to your bank account.

The funds of each purchase are sent to your bank account (or PayPal account) individually. As such, 1 purchase equals 1 transaction (in terms of accounting).


Amazon, Shopify, Gumroad, etc. are what I consider marketplaces. They do what payment processors do – however, they handle a few additional tasks.

First, they take care of VAT/sales tax directly.

Depending on the settings, this tax will automatically either be added to the final price or deducted from the sales revenue.

The payment processor, doesn’t concern himself with taxes – instead your accountant will have to transfer the tax manually.

This alone creates massive, additional workload. (Plus, you will have to apply for VAT if you sell to EU customers!)

Estonia Business Costs

The real benefit in using a marketplace over a payment processor lies in the fact that funds are NOT sent individually. Instead, you receive the payout once per week or monthly (depending on settings).

In terms of accounting, that means just 1 transaction per week – instead of dozens.

  • You make the same amount of money.
  • You pay less for accounting.

The only real downside is that you don’t receive the money instantly when you make a sale.

There’s a payout period (usually a few days/weekly). If you can deal with that downside, then it’s definitely worth applying this cost-saving strategy.

Accounting Consulting

… is another important criteria to consider. Xolo (formerly LeapIN) charges a fixed monthly rate. Whenever I’ve had a question, I got a prompt reply.

Other accounting providers do charge a fee for such ‘questions/consultations‘.

As you can see, strategy is everything when it comes to starting and operating an online business.

Not only in terms of accounting, taxes – literally any part of a business can be optimized. If you’d like to work with me directly, you can get in touch here.