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Estonia is running its country like a tech company

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Re: Estonia is running its country like a tech company

#121

Post by csomar »

piva00 wrote: post #94
vonmoltke wrote: post #89

Earlier quoted context omitted.

> America is very backwards in tech for daily life. About 2 years ago I was blown away when I arrived at the San Francisco airport and had to buy a train card with a Visa card; the customer service guy got flustered and pulled an old carbon paper swiper thing out from under the desk, and asked for my signature. America is very backwards because of one thing that happened to you that has literally never happened to me…

I had similar experiences with backwards technology while visiting the US. Buying tickets for the BART or Caltrain is nothing similar to the experience with NS in the Netherlands or even the BVG/MVG in Germany (even if Caltrain nowadays has an app), it feels really antiquated and buggy. Having my card swiped and asking for signatures in receipts at stores, cafés or restaurants is also a thing of the past even in Braz…

> Having my card swiped and asking for signatures in receipts at stores, cafés or restaurants is also a thing of the past even in Brazil.

They are just trying to get that sweet tip.

Re: Estonia is running its country like a tech company

#122

Post by csomar »

lagadu wrote: post #90
pavlov wrote: post #23

If you're thinking about starting a company in Estonia under the "e-residency" program, you should know that Estonian banks have recently become very skeptical about opening bank accounts for foreigners. It's not enough that you have an Estonian corporation, you'll probably be expected to demonstrate that your business has actual ties to Estonia. Finnish entrepreneurs are being denied bank accounts despite the close…

How recently? I opened an account for my Estonian company as an e-resident (from the EU) in Q1 2019 and it took a grand total of ~40 minutes at the bank to get everything working. I had to visit the bank HQ in person but the whole process was really really smooth sailing.

What documentation did they ask for?

Re: Estonia is running its country like a tech company

#123

Post by csomar »

pavlov wrote: post #34
atlasunshrugged wrote: post #31

Earlier quoted context omitted.

Unfortunately, it isn't a new issue, I left the e-residency programme soon after the banking scandal (unrelated to why I left) but bank accounts have always been a major problem, especially because most of the business banking sector in Estonia is run by foreign firms with local branches rather than Estonian banks.

Startup idea: Create the globalized equivalent of Silicon Valley Bank in Estonia — a local bank that serves credible startups around the world, with staff that has the competence to evaluate customers’ tech chops.

There are already a dozen for these "fintech" companies. They offers cards and virtual IBAN (which is as good as a regular IBAN).

1. They expensive (like 30euro/months) for what the banks offer for free.

2. No credit cards / Credit lines.

3. No investment accounts (though I'd avoid banks for brokerage).

Re: Estonia is running its country like a tech company

#124

Post by csomar »

corford wrote: post #87
Andrew_nenakhov wrote: post #43

Earlier quoted context omitted.

Thing is, we are from Russia. And LHV requires some "proof of our company connection with Estonia economy, like existing contract or utility bills". What proof can there be if the company is just started and not fully operational without bank account (hence, no contracts) and is not physically present in Estonia (hence, no utility bills)? It sucks being Russian these days because of our warmongering dictator. :-/

I've heard a borderless account with TransferWise can be a quick, painless route

I'd advise to read reviews about TransferWise. They seem to have a very shitty service and non-functional website.

Re: Estonia is running its country like a tech company

#125

Post by gamblor956 »

odiroot wrote: post #99
znq wrote: post #4

I've run and invested in businesses in multiple countries (Spain, Germany, US, UAE, Sri Lanka). One of them (Mobile Jazz - a fully remote company) we've moved to Estonia in 2016. One of the best business decisions we've made admin-wise. While there are for sure better alternatives when it comes to "saving on taxes" (I'd say Estonia is in the European average with 20% corporate tax and an interesting taxation model on…

Would you recommend Estonia for setting up a freelancing business -- as in establishing a legal entity for self-employment?

Not if you're doing the work in another country. You just end up owing taxes and tax returns to two countries instead of one.

Re: Estonia is running its country like a tech company

#126

Post by marcosdumay »

lagadu wrote: post #90
pavlov wrote: post #23

If you're thinking about starting a company in Estonia under the "e-residency" program, you should know that Estonian banks have recently become very skeptical about opening bank accounts for foreigners. It's not enough that you have an Estonian corporation, you'll probably be expected to demonstrate that your business has actual ties to Estonia. Finnish entrepreneurs are being denied bank accounts despite the close…

How recently? I opened an account for my Estonian company as an e-resident (from the EU) in Q1 2019 and it took a grand total of ~40 minutes at the bank to get everything working. I had to visit the bank HQ in person but the whole process was really really smooth sailing.

It doesn't really matter how smooth it is, the entire point of e-residency is lost if you have to personally go there once in a while.

The fact that the meeting only takes 40 minutes is just extra injury if you had to travel 6000km to get there.

Re: Estonia is running its country like a tech company

#127

Post by goatinaboat »

znq wrote: post #4

I've run and invested in businesses in multiple countries (Spain, Germany, US, UAE, Sri Lanka). One of them (Mobile Jazz - a fully remote company) we've moved to Estonia in 2016. One of the best business decisions we've made admin-wise. While there are for sure better alternatives when it comes to "saving on taxes" (I'd say Estonia is in the European average with 20% corporate tax and an interesting taxation model on…

Estonia (in fact all the 3 Baltic States) under-taxes at present in a way that’s not sustainable. For example there is a significant NATO presence there to protect them from the Russians. At some point someone will want them to make a fair contribution to that, such as purchasing a few tanks and fighter jets...

https://www.army.mod.uk/deployments/baltics/

https://www.nato.int/cps/en/natohq/news_165751.htm

Re: Estonia is running its country like a tech company

#129

Post by Andrew_nenakhov »

corford wrote: post #87
Andrew_nenakhov wrote: post #43

Earlier quoted context omitted.

Thing is, we are from Russia. And LHV requires some "proof of our company connection with Estonia economy, like existing contract or utility bills". What proof can there be if the company is just started and not fully operational without bank account (hence, no contracts) and is not physically present in Estonia (hence, no utility bills)? It sucks being Russian these days because of our warmongering dictator. :-/

I've heard a borderless account with TransferWise can be a quick, painless route

That's what we ended up with. So far the experience itself was good, but unfortunately it does not solve all our banking needs: for example, to receive payouts from Google Play you need your bank to be in the same country that a company is incorporated in. Since TransferWise is in Germany, it just doesn't work for Estonian companies.

We didn't yet publish our software in Apple App Store, but I've heard that it could be a problem there, too.

Re: Estonia is running its country like a tech company

#130

Post by mailslot »

vonmoltke wrote: post #102
rorykoehler wrote: post #93

Earlier quoted context omitted.

Cheques haven't even existed for 15+ years here in Ireland. America is quite slow on the uptake of tech considering they are arguably the most disruptive innovators in the world as a country.

Checks have lived on beyond their useful life, unfortunately. I think the only reason they still exist is the arthritic ACH system and the desire by some receipients to avoid credit card processing fees. Still, while checks may still be a thing they're pretty rare and rarely required. Mobile and contactless payment is pretty common (outside the food service industry, but I blame the food service industry for that).

Transaction & processing fees are no joke. Big or small, 3% of your revenue before profit, is a big deal.

It made sense as a convenience fee, until it became ubiquitous. Now it’s a tax that people are blindly opting in to.

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