E

xpand Your Business in Estonia

Currency:

Euro (EUR)

Official Language:

Estonian

Ease of Doing Business Rank:

18th globally (World Bank, 2020)

Average Time to Set Up a Business:

1–5 days

Corporate Tax Rate:

20% on distributed profits; 14% for regular profit distributions

VAT (Standard Rate):

22% (effective from January 1, 2024)

VAT Registration Threshold:

€40,000 annual turnover

Dividend Tax Rate:

No withholding tax on dividends paid to non-residents

Personal Income Tax Rate:

20% flat rate

Company + Employer Contributions:

33% social tax paid by employers

Minimum Share Capital:

No minimum for private limited companies (OÜ)

Bank Account Requirements:

Not mandatory to open a local bank account; alternatives available

Accounting Requirements:

Annual financial statements; monthly tax declarations

Audit Requirements:

Mandatory for companies exceeding specific thresholds (e.g., turnover, number of employees)

Business License Requirements:

Required for specific regulated activities (e.g., finance, healthcare)

Immigration Policy:

E-Residency program available; separate visa required for physical residency

Compliance Requirements:

Regular tax filings, adherence to local labor laws, and maintenance of proper accounting records