Estonia is moving forward with a plan to streamline its popular e-Residency program by awarding a contract to Latvia-based X Infotech to develop remote biometric capture technology. Starting in 2027, applicants will be able to submit facial images and fingerprints via smartphone, eliminating the need to visit an Estonian embassy or government office.
Expanding Digital Access
Estonia’s e-Residency program provides foreign nationals with access to a range of services, including company formation, banking, payment processing, and taxation, after completing an initial online screening process. Currently, applicants must finalize their application in person by submitting biometric data and receiving a digital ID smart card. This new technology aims to remove that barrier.
According to Anita Preinvalts, Senior Commissioner of the Police and Border Guard Board (PPA) Identity and Status Bureau, the new system could eventually be expanded. “This means that e-residents no longer have to go to the Estonian embassy to have their biometrics taken. If everything works, we can expand this solution to other applicants for identity documents in the future,” she stated.
Security and Compliance
X Infotech will develop an application capable of capturing biometric data and verifying the authenticity of submitted documents. The solution must adhere to the stringent security requirements outlined in the EU’s eIDAS regulation. The framework agreement for this project is valued at up to 3 million euros (US$3.5 million) and will span 48 months.
The IT and Development Centre at the Estonian Ministry of the Interior (SMIT) initiated the tender in 2024, receiving responses from 12 companies. The selection process involved a “competitive dialogue” to thoroughly evaluate potential solutions. According to Kaija Kirch, head of the Identity Services Department at SMIT, the uniqueness of the project lies in its integrated approach: “What makes the procured service unique is that the verification of the authenticity and validity of the document, taking a photo and providing fingerprints must work together in one service.”
Economic Implications
The e-Residency program has already generated an estimated economic impact of 400 million euros ($468.9 million) for Estonia. Liina Vahtras, head of the e-Residency program, anticipates that the new, fully remote process will further boost economic activity. “We predict that the launch of the card-free solution will increase the activity of e-residents in creating Estonian companies by at least 20 percent, which means 3-9 million euros ($3.5-10.5 million) in additional tax revenue for the state per year,” Vahtras explained.
Frequently Asked Questions
What is Estonia’s e-Residency program?
Estonia’s e-Residency program allows foreign nationals access to services such as company formation, banking, payment processing and taxation after completing pre-screening.
When will the remote biometric capture technology be available?
The technology is expected to be implemented starting in 2027.
What security standards will the new system adhere to?
The solution developed by X Infotech will have to meet high security requirements according to the EU’s eIDAS regulation.
As Estonia continues to innovate in the digital space, it will be interesting to see how this new technology impacts the growth and accessibility of its e-Residency program.
