OREANDA-NEWS. May 13, 2014. The Estonian government approved an Interior Ministry bill that will allow foreigners to seek e-residence in Estonia, that is, the opportunity to sign documents digitally, to facilitate international business and communication with government agencies.

Interior Minister Hanno Pevkur said the new solution enables foreigners to do business in Estonia regardless of their physical location, increasing thereby the flexibility and efficiency of international economic, research and educational activities.

An e-resident is a foreigner for whom the Estonian state, basing on his identity in his country of residence, creates a digital identity and issues a digital ID. Digital ID allows non-residents to operate in the Estonian e-environment, the Interior Ministry said.

"Digital ID will make Estonia more attractive to foreigners and foreign businesses connected with and operating in Estonia as a friendly environment for both living and a temporary stay. It also will increase the attractiveness of the Estonian business environment," Pevkur said.

"For companies, e-residence will open further opportunities for offering their digital services both on the domestic and international market. It will also facilitate the operation of businesses that are of importance to Estonia and increase their numbers, help bring investments here, and create jobs and added value," the minister said.

Digital ID of an e-resident is also a suitable tool to keep in touch with emigrated Estonians and give them access to e-services and information regardless of their citizenship or country of residence. "But it has to be kept in mind that digital ID of an e-resident is a benefit, not a right. The state will issue it for use in good faith and for performing legal transactions and will check how it is used," Pevkur added.

If parliament could adopt the necessary amendments by the fall the Interior Ministry is ready to issue the first digital IDs before the end of this year, the minister said.

Identification of an e-resident will be based on biometric data to rule out the possibility of creating and using several identities in Estonia.

The primary target group of e-residence are people who are connected with Estonia through business, work, studying or origin. They need digital ID for transactions in the e-environment if they are not Estonian national or foreigners living in this country on the basis of a residence permit or right of residence. The Interior Ministry estimates there already are around 50,000 such people. They have a significant economic impact on Estonia. Foreign companies play the key role in the economy, accounting for 60 percent of total exports, 36 percent of employment, 35 percent of research and development expenditure, and 45 percent of value added.

People who have emigrated from Estonia and their descendants who do not hold Estonian citizenship, estimated to number 130,000, are seen as a second target group.