Advantages of Company Registration in Estonia

 

 

Starting a business in Estonia is fast, cost-effective, and provides direct access to the EU market.

Below are the main benefits of registering an Estonian company:

 

• Services in English – state authorities, banks, and registrars provide multilingual support.

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• Fast registration – open a company within 1–3 days, in person at a notary or remotely by power of attorney.

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• Minimum share capital – from €1; contribution can be postponed.

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• Flexible ownership rules – only one shareholder and one board member required; 100% non-residents allowed.

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• Low administrative costs – simple accounting and clear Commercial Code.

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• Unique taxation system – 0% corporate income tax on retained profits. Tax is paid only on dividends.

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• Transparent legislation – predictable taxes and a stable business environment.

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• EU single market access – full rights to operate across the European Union, export goods, attract investors, and cooperate internationally.

 

• Trust and credibility – Estonian companies are seen as reliable partners thanks to transparency and strict corporate standards.

 

• Digital business management – e-Residency program allows you to manage your company entirely online.

 

• Immigration benefits – business activity may be a basis for obtaining a visa or residence permit for the owner and family members.

 

• Transport advantages – companies can purchase cars with VAT refund, without customs duties or luxury tax.

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Taxation in Estonia

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Estonia is known for its unique and business-friendly tax system:

 

• Corporate tax on retained earnings – 0%

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• Dividend tax – 22/78 (28.21%)

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• Personal income tax – 22%

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• VAT (Value Added Tax) – 22% (24% from July 1, 2025)

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• Social tax – 33% (minimum €820/month base; €270.60/month minimum payment)

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• Unemployment insurance – employer 0.8%, employee 1.6%

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• Funded pension – 2% (optionally 4% or 6%)

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• Tax-free allowance – €654/month (€7,848/year)

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• Minimum salary – €886 gross, €5.31/hour

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• From January 1, 2025 – a new vehicle tax will apply, based on car weight and CO₂ emissions.

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