Investment Fund Creation in Estonia: A Guide for non-Residents /e-Residents

Establishing an investment fund is challenging, but with access to the right resources and information, it becomes a viable objective. For e-Residents, the process is made easier by the digital infrastructure and favorable business environment of Estonia. In this blog post, we will explore why Estonia is an excellent place for investment fund creation and how e-Residents can take advantage of it.

What is e-Residency, and why choose Estonia for investment fund creation?

e-Residency is a program launched by the Estonian government in 2014, enabling entrepreneurs to establish and manage a location-independent business entirely online. With e-Residency, entrepreneurs can open and operate a business in Estonia remotely and access a range of digital services, including signing and verifying documents, conducting online banking, and filing taxes. This program makes Estonia an attractive destination for entrepreneurs looking to start a business from anywhere in the world, including investment funds.

Estonia’s Benefits for Investment Fund Creation

Estonia’s investment fund creation process is streamlined and efficient, making it an appealing location for e-Resident investors. As of 2025, the corporate income tax on distributed profits has been adjusted to a flat rate of 22% (22/78).

The country’s business-friendly policies and regulatory environment continue to attract those looking to start investment funds. Moreover, Estonia is part of the EU and enjoys access to the European Union’s single market, which opens up a customer base of over 500 million people. The nation’s advanced digital infrastructure and its strong reputation for tech and innovation make it an ideal location for funds that aim to leverage technology to streamline operations and reduce costs​.

When starting an investment fund in Estonia through Silva Hunt, investors gain access to the Silva Hunt community. This community comprises experienced entrepreneurs and investors who participate in mastermind events to exchange knowledge and insights. Such networking opportunities and access to collective expertise are invaluable for anyone establishing an investment fund in Estonia

Comparison with Luxembourg and Germany

When compared to Luxembourg and Germany, Estonian investment funds offer distinctive advantages primarily due to Estonia’s more flexible and technologically advanced environment. Luxembourg is renowned as a leading hub for investment funds in Europe, particularly due to its favorable tax treaties and specialized investment vehicles. However, the setup and maintenance costs there are typically higher than in Estonia.

On the other hand, Germany offers a robust economy and a large domestic market for investment funds but tends to have a more complex regulatory environment and higher tax rates compared to Estonia. The Estonian approach offers a more streamlined digital process for fund management and registration, which can be significantly advantageous for smaller funds or those looking to maintain lower overheads. This makes Estonia particularly attractive for emerging fund managers and fintech startups that value digital efficiency and a supportive entrepreneurial ecosystem.

Requirements and Regulations for Investment Funds in Estonia

Estonia has a well-regulated investment fund industry, with various regulatory requirements depending on the type of investment fund you want to create. There are two main types of funds in Estonia: UCITS and AIFs. UCITS are subject to more stringent regulation, making them more suitable for retail investors, while AIFs are more flexible and generally aimed at professional investors.

• UCITS (Undertakings for Collective Investment in Transferable Securities) are investment funds that comply with EU regulations and are authorized to market and distribute their shares across the EU. UCITS funds are subject to strict investment rules and must comply with rigorous disclosure requirements.
• AIFs (Alternative Investment Funds) are investment funds that do not comply with UCITS regulations. AIFs can invest in a wide range of assets, including real estate, private equity, and hedge funds. AIFs are subject to less strict investment rules than UCITS funds, but they must comply with certain disclosure and reporting requirements

We can help you navigate the regulatory requirements and ensure that your investment fund complies with all applicable laws and regulations.

Creating an Investment Fund in Estonia: step-by-step

To establish an investment fund in Estonia as an e-Resident, you will need to go through several steps. Silva Hunt together with our partner, as a fund structuring and administration service, can help you navigate the process. As an e-Resident, you can do this from anywhere in the world.

Here’s what the process typically looks like. In general, expect this to take roughly 12 months:

1. Register your company
   You will need to register your investment fund company in Estonia. Make sure to prepare all the necessary documents needed for the submission of the application.
2. Obtain the necessary licenses and permits
   Depending on the type of investment fund you wish to create, you may need to obtain certain licenses and permits from the Estonian Financial Supervisory Authority and Financial Intelligence Unit.
3. Open a bank account
   Once your company is registered and licensed, you can open a bank account in Estonia.
4. Set up Investment fund structure
   Set up the legal structure of your investment fund, including drafting the fund rules, managing shareholder agreements, and ensuring compliance with Estonian and EU regulations.
5. Launch the investment fund
   Once everything is in place, you can launch your investment fund and start accepting investors.

We help you set up and manage your investment fund in days and provide you with following services:

• Company registration and licensing
• Assistance with bank account opening
• Legal and tax advice
• Fund structuring and drafting of fund rules
• Compliance monitoring and reporting
• Investor onboarding and communication

So you can save time, reduce your administrative burden, and focus on growing your investment fund! Get in touch to learn more.

Starting an investment fund in Estonia as an e-Resident is a great way to take advantage of Estonia’s favorable business environment, attractive tax system, and well-developed digital infrastructure. By partnering with us, you can benefit from our expertise and experience in setting up and managing investment funds in Estonia.