Lithuania’s parliament voted on Tuesday to offer e-residency, allowing entrepreneurs to run their businesses in Lithuania from abroad, with the aim of boosting foreign investment.
This new legislation will allow foreign entrepreneurs to set up their companies in Lithuania as from 2021, which is currently a member of the EU and the eurozone, whilst also having a population of 2.8 million.
This legislation will also allow the entrepreneurs to run their companies remotely, with the ability to declare their taxes and sign documents digitally.
This scheme does not give the entrepreneurs citizenship, tax residency, physical residency or the right to travel to Lithuania.
Lithuania’s Interior Minister, Eimutis Misiunas told AFP that “We must go along with technological progress, and take into account the ever-increasing digitalisation of services.”
To add to this, Mr Misiunas said that they have officials assigned to assessing the possible security challenges that this scheme might encounter, such as money laundering and terrorism financing.
Estonia, one of Lithuania’s neighbouring countries, was the first country to introduce e-residency identification cards to people globally, back in 2014. Ever since the introduction of the scheme, around 54,000 entrepreneurs from 136 different countries have become Estonian e-residents, mostly being from Ukraine, Germany and Russia.
Estonia have generated more than €15 million in taxes from around 6,000 e-residency driven companies that were being controlled from foreign countries.