Digital Identity

Digital Residency

Understanding digital residency programs, benefits, and how they compare to traditional residency and citizenship.

What is Digital Residency?

Digital residency is a government-issued digital identity status that provides certain benefits and services without requiring physical relocation. Unlike traditional residency, which requires you to live in a country, digital residency exists entirely online.

The concept gained prominence with Estonia's e-Residency program (launched 2014), which allows anyone to start and manage an EU-based company remotely. Since then, other countries have launched their own programs, including the Republic of Palau (2022), which focuses on digital identity and crypto applications.

What Digital Residency Is Not

  • Not citizenship: You don't become a citizen or get voting rights
  • Not physical residency: You don't have the right to live there
  • Not a passport: You can't use it for international travel
  • Not a tax loophole: You remain tax resident in your home country

What Digital Residency Can Provide

  • Government-issued identification document
  • Digital identity for online services and verification
  • Business formation capabilities (varies by program)
  • Banking access (varies by program)
  • Tax benefits on income from the issuing country (not your home country)

Digital Residency Programs Compared

Quick comparison of major programs

ProgramFocusCostBest For
Palau Digital ResidencyDigital Identity, KYC$248-$2,039Crypto KYC, Digital Identity
Estonia e-ResidencyEU Business€150 (5yr)EU Company Formation
Lithuania e-ResidencyEU Business€150 (5yr)Fintech, EU Banking

Prices and features as of January 2025. See our comparison guides for detailed breakdowns.

Frequently Asked Questions

Common questions about digital residency

All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.

Start your digital residency journey

Get a government-backed digital identity from the Republic of Palau.