Virtual Residency: e-Residency and Digital ID Programs Compared
Last updated: September 2026.
What virtual residency is (and what it is not)
Virtual residency, often called e-residency or digital residency, is a government-issued digital identity for people who do not live in the issuing country. It lets you prove who you are online and, depending on the program, open and run a company, sign documents with a legally recognized digital signature, or pass identity checks with banks and exchanges.
It is not a residence permit. It does not give you the right to live or work in the country, it is not a visa, it does not make you a tax resident, and it does not lead to citizenship. If you want to actually relocate, look at residency by investment or digital nomad visas instead.
Virtual residency countries
Open a country profile for the full picture, including the residence and citizenship routes if you later want to move.
Estonia
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Lithuania
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2026 virtual residency programs compared
Only a handful of governments issue a digital identity to non-residents. These are the programs that are open and backed by a recognized state.
| Program | Issued by | Cost | Validity | Best for | Limits |
|---|---|---|---|---|---|
| Estonia e-Residency | Republic of Estonia | €150 state fee (flat €165 from 1 Jan 2027) | 5 years | Founding and running an EU company online, signing documents digitally | Card must be collected in person at one of 50+ pickup points worldwide |
| Lithuania e-Residency | Republic of Lithuania | Check the Migration Department for the current fee | 3 years | Company formation, tax filings and banking with Lithuanian institutions | Biometrics given in person at a diplomatic mission or service provider; small program |
| Palau Digital Residency | Republic of Palau (technology by RNS) | US$248 (1 yr), US$1,039 (5 yrs), US$2,039 (10 yrs) | 1 to 10 years | A government photo ID for identity checks, such as crypto exchange KYC | No company registration yet; acceptance by exchanges and banks varies |
Fees last checked September 2026 against the official e-Residency knowledge base and published Palau program pricing. Always confirm with the issuing government before applying.
How to choose a virtual residency program
You want to run an EU company remotely
Estonia is the established choice. e-Residents can register an Estonian company online, run it from anywhere and sign contracts digitally. Budget for more than the card: you will need a local contact person or registered address and usually an accountant. Estonian e-Residency is not tax residency, so where the company and you are taxed depends on where you and your management actually are.
You need a government photo ID for KYC
Palau issues a physical photo ID card by mail, which some crypto exchanges accept for identity verification. It does not currently let you register a company, and banks and exchanges decide for themselves whether to accept it.
Be careful with unrecognized e-residencies
Some projects, such as Liberland, sell e-residency or citizenship certificates. Liberland is a self-declared micronation that no UN member state recognizes, so its documents carry no legal status for travel, banking or tax.
Get help setting up your company or second residency
An e-Residency card is only the first step. A good advisor helps with company setup, banking and tax residency, and with a real residence permit if you decide to move.
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Frequently asked questions
No. Estonian e-Residency is a digital identity, not a residence permit or visa. To live in Estonia you need a separate permit, such as a digital nomad visa or a temporary residence permit.
No. None of these programs make you a tax resident of the issuing country. Your personal tax residency depends on where you live and spend your time, and a company’s tax position depends on where it is managed.
The state fee is €150 and the card is valid for five years. From 1 January 2027 the fee becomes a flat €165 for both new applications and renewals. Company formation, a contact person and accounting are extra.
US$248 for a one-year card, US$1,039 for five years and US$2,039 for ten years. The card is mailed to you, and it cannot be used to register a company in Palau at the moment.
No. Time as an e-resident does not count toward naturalization anywhere. For a path to a second passport, see citizenship by investment, citizenship by descent or residency programs that lead to naturalization.
Liberland is a self-declared micronation that is not recognized by any UN member state. Its e-residency and citizenship documents have no legal effect for travel, banking or tax purposes.