Business environment
Considerations for the investor:
- Estonian law is harmonised with the EU legislation.
- Workforce is highly educated and motivated.
- A relatively good and rapidly-developing production infrastructure (ports, roads, telecommunications, warehouse facilities) supports the development of nation.
- Estonia has highly-developed electronic communications: good access to internet, digital signatures, ID cards, web-based projects.
- Estonia is the most transparent and the least corrupt country in the CEE region (Transparency International Corruption Perceptions Index 2015, 23rd out of 168 countries).
- Estonia’s economic freedom is regarded as one of the highest in the World and the best in the CEE region (Economic Freedom World Ranking , out of 178 countries).
- Regulatory environment is conducive for starting and operating a company in Estonia (IMF Ease of Doing Business out of countries).
Keywords
Progressive
Estonia can offer a progressive business environment with an efficient and compatible infrastructure. Our e-services, mobile communications and internet applications are among the most progressive in the world. Estonians are adaptable towards new technologies, and use them willingly.
Nordic Influence
At the same time, our Nordic influence gives investors a transparent, clearly-defined, sincere and honest partner who is considerate, rational and not very talkative. The Estonian approach is functional and one that creates timeless value. Our natural resources are powerful and accessible.
Rootedness
As an added value, rootedness is like a guarantee that Estonians do not give up and would rather break their arm than a promise they have given. Perseverance and culture are a good basis for long-term plans in any area of business.
Business Climate
Estonia is the leading country in Central and Eastern Europe in terms of attracting foreign direct investments. Estonia is within a 3-hour flight from most major European, Scandinavian and Russian cities. Overall, the business climate in Estonia is characterised as free business and trade in alignment with EU practices. Many companies are subsidiaries of European, particularly Scandinavian firms. Estonia has some of the highest credit ratings in the region (Fitch IBCA, Standard & Poor’s, Moody’s). Estonia is a member of the euro area from 2011, but the country’s cost level is still significantly lower than that of the neighbouring Scandinavian countries.
Throughout the period of regained independence, the economic and fiscal policy of the government has mostly been aimed at achieving long-term economic growth. The overall government attitude is very welcoming toward foreign capital, especially into sectors that are export oriented, innovative and support regional development. 0% corporate income tax is imposed on all reinvested earnings in Estonia.
Estonia is one of the leading countries in the world in creating and implementing e-government solutions and cyber security. 99% of peole use internet banking services and more than 95% complete their income tax return over the internet. Estonia hosts both the cyber security centre of NATO and the IT-agency of the European Union.
In the 2015 parliamentary elections 30.5% of all participants voted over the internet.
Since 2015 non-residents may apply for e-Residency which is a state-issued secure digital identity that allows digital authentication and digital signing of documents. The purpose of e-residency is to make life easier by using secure e-services that have been accessible to Estonians for years already. By providing e-residency, Estonia is moving towards the idea of a country without borders.
