Register Company in Estonia. Why? Here is 28 reasons.
3 min read

Register Company in Estonia. Why? Here is 28 reasons.

Estonia is a very favorable country for starting a business in the European Union. 0% income tax, convenient banking environment, electronic enterprise management, friendly attitude towards foreign businessmen, simple and straightforward process of creating a company.
Register Company in Estonia. Why? Here is 28 reasons.

Let's list the main advantages that distinguish Estonian firms from others:

  1. Only in Estonia corporate income tax corresponds to 0%! This is beneficial primarily to those entrepreneurs who use the income received not for payments to individuals, but for investing in the further development of their business.
  2. From 01.01.2011, it is NOT necessary to hire a local resident to the governing body of the company (mandatory term in Finland, Lithuania and other European countries). This means that the founders and board members can be 100% non-residents of Estonia and the EU.
  3. There is no compulsory condition to calculate the salary of a board member (director) of the company and, accordingly, there is no requirement for its minimum size.
  4. There is no need to actually deposit the authorized capital (min. €2,500) during the registration of the company, it is enough to simply declare it during the company registration.
  5. There is no reporting as such to the Estonian Tax Department in the absence of payroll and VAT number for the company.
  6. An opportunity to obtain an annual (and then three-year) business visa.
  7. A very reliable and affordable banking service sector, based in the overwhelming majority on the capital of the Scandinavian countries: Sweden, Norway, Finland and Estonia.
  8. A company in Estonia can receive unlimited amount of funds from its shareholders as loans, which allows him to withdraw the received profit in the form of an annual interest payment without any taxes in Estonia (for non-residents of Estonia).
  9. The absence (since 2016) of the so-called black list of jurisdictions (offshore companies) officially approved by the Estonian Tax Department, transactions with which were subject to income tax.
  10. When carrying out real activities of the company, it is possible to apply for a residence permit for a member of the board or owner of the company.
  11. The ability to buy real estate in the ownership of an Estonian company without any taxes.
  12. Possibility to purchase a car in the ownership of the company without paying (or refunding) VAT 10-20%.
  13. No transport tax on cars in Estonia for both individuals and legal entities.
  14. Estonian resident companies use tax treaties to avoid double taxation concluded with a number of countries: Austria, Armenia, Belgium, Belarus, Great Britain, Hungary, Germany, Holland, Denmark, Ireland, Iceland, Spain, Italy, Canada, Kazakhstan, China, Latvia, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Portugal, Poland, Romania, Slovakia, Slovenia, USA, Turkey, Ukraine, Finland, France, Croatia, Czech Republic, Switzerland, Sweden.
  15. A very transparent and understandable tax system.
  16. Convenient geographical position of Estonia and its proximity to Russia, Finland, Sweden and Latvia.
  17. Low annual costs for maintaining the company (from 250 euros / year).
  18. Low costs for servicing of Estonian company's bank account.
  19. Due to the high image of the Estonian jurisdiction, it is almost hassle-free to open an account in any European bank.
  20. Only a few types of entrepreneurial activity are subject to licensing, most of the permits are simply for notification purposes.
  21. In case of e-commerce activity, it is possible to register any domain name in the European domain zones (eu, ee, es, etc.) and open payment account (IBAN, SWIFT) in systems such as Gemba, Stripe, Wise.
  22. There is no bureaucracy – it simply does not exist.
  23. It is very convenient for creative and IT business not to require a physical presence, but have the global market, thus, it is just an ideal option for freelancers who are not tied to a specific place of residence.
  24. When calculating your salary and, accordingly, paying taxes, you get the right to free medical care. In the event of a threat to your life while in another European country, you have the right to free first aid in public medical institutions of that country.
  25. When taxes are paid, the accumulation takes place in your pension account, that is, in the future you can count on a pension from the Republic of Estonia.
  26. Potential clients from Europe are more willing to conclude contracts with a company from the EU.
  27. Possibility for faster and cheaper registration of intellectual property (patents and trademarks in the EU).
  28. The opportunity to obtain a residence permit in Estonia without the obligatory to stay in the country for at least 183 days a year (the requirement was canceled in 2017).
Interested in Registering a company in Estonia? The specialists of our company will be happy to answer your questions. Contact Us!

Would you like to speak to one of our financial advisers?
Our team is happy to answer your questions.