Why I structured a group of 6 companies in a country of 1.3 million people.
When you tell people you have a holding company in Estonia, you always get the same question: "Why Estonia?" Not Switzerland. Not Ireland. Not Delaware. Estonia. A small country of 1.3 million people tucked between Finland and Russia. In my case there are two reasons: the Estonian system is objectively the best for what I do, and in France I was blacklisted from banking so I didn't have a choice anyway.
The e-Residency program
e-Residency is a digital identity card that lets you create and manage an Estonian company 100% remotely. No need to live in Estonia. No need to go there physically except once to pick up the card. Everything is done online: company creation, tax declarations, document signing, bank accounts. I already had a company in Estonia before creating the holding. When I wanted to structure the group, I just created the subsidiaries from home. 6 companies created without leaving my chair.
Time to create a company: 5 minutes. Cost: €190 in government fees. Zero unnecessary paperwork.
The taxation
Estonia has a unique tax system: 0% tax on reinvested profits. You only pay tax (20%) when you distribute dividends. As long as the money stays in the companies and funds growth, you pay nothing. Concretely, when FormaCash generates cash, it flows up to the holding via cash pooling, the holding redistributes it to VMCloud to fund datacenters, or to GLT BTC to optimize treasury. Zero taxation on those movements. The cash circulates in the group, it works, and as long as it's not distributed there's no tax. For a group under construction that reinvests everything, it's a massive advantage. In France the same movement would be taxed at every step.
0%
0% as long as you reinvest. 20% when you distribute.
The digital infrastructure
Estonia didn't just digitize its administration, it was built digital-first. The business registry is an API. Electronic signatures have legal force. Tax declarations take 5 minutes. When you come from the French system with its cerfa forms, delays, registered mail, it's a different world. I manage 6 companies from France, all the accounting, declarations, contracts, everything is done online. My Estonian accountant handles everything remotely too.
Business registry accessible via API
Legally binding electronic signature (eIDAS)
Tax declaration in 5 minutes
Annual accounts filed online
100% digital communication with administration
Multi-company management from a single dashboard
Subsidiary creation in 5 minutes without traveling
Why not France?
I have a sole proprietorship in France for consulting. I know the system. Social charges at 22% from the first euro. URSSAF. CFE. Processing delays. At the time I was blacklisted from banking in France, no standard business account, no way to structure anything. That's no longer the case today but even without that, for structuring a group of 6 tech companies, France isn't suited. Too many charges, too much paperwork, too many delays.
The alternatives I looked at
Before choosing Estonia I looked at other options.
Ireland
12.5%Good for big companies. Too many substance requirements for a lean structure.
Netherlands
19-25.8%Good holding ecosystem but classic taxation and high costs.
Switzerland
11-21%Excellent for wealth, complex and expensive for a solo entrepreneur.
Delaware (US)
21% federalStartup hype but double taxation if you're not a US resident.
The misconceptions
When you mention Estonia to people, the first reaction is "that's fraud", "that's a scam", "that's to hide money". It's wrong. Estonia is a European Union country, with a transparent legal framework, a public business registry, and strict accounting obligations. The e-Residency program was created by the Estonian government, not by some shady offshore firm. Over 100,000 e-residents worldwide. Thousands of companies created by entrepreneurs from everywhere. It's literally one of the best systems in the world for digital entrepreneurs. The problem is people confuse legal tax optimization with fraud. Reinvesting your profits without paying tax isn't fraud, it's the Estonian tax system. It was voted by their parliament, it's in their law. France could do the same, they choose not to.
After 2 years
DVP Holding OÜ holds 6 subsidiaries, all in Estonia. Management is smooth, costs are low, taxation is optimal for the growth phase. The Estonian banking system is strict, anti-money laundering rules. Opening an account can take time, and when you're young with significant cash flows it triggers checks. But compared to alternatives it's still the best choice for what I do. The advantage is that all the cash stays in the group and funds growth. No tax as long as I don't distribute. The day I want to take money out I'll pay 20%, but until then the cash works.
7
Legal entities
€190
Cost per company
0%
Tax on reinvestment
100%
Remote management
5min
Subsidiary creation
€1M+
Group combined revenue
In short
If you're building a digital business, you want to reinvest your profits and you don't need to be physically somewhere, look at Estonia. Not because it's trendy. Because it's the most rational system for this type of structure.
— GL