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When doing business in Estonia, companies enter a digitally driven and forward-thinking market known for its strong technological backbone and well-developed traditional industries. Sectors such as IT, telecommunications, energy, construction and manufacturing form the core of the economy, while emerging priorities like renewable energy and agriculture attract increasing investment attention.
Estonia’s business environment is built on efficiency and transparency, from streamlined company formation procedures to clear regulatory frameworks governing corporate, VAT and local taxation. Labour rules are straightforward, offering flexibility in employment arrangements and clear guidelines for both local and foreign workers. Individuals and companies alike operate within a predictable personal tax and social security system, supported by comprehensive legislation and accessible public records.
Together, these factors make Estonia an appealing location for entrepreneurs and investors seeking a stable, innovation-friendly setting in the Baltic region. This infographic summarises the essential areas to understand before taking your next step.
Our free eBook on international expansion was created in cooperation with our global business community, Accace Circle, providing basic yet valuable information from 17 countries. Breeze through the specifics of doing business across different markets and compare key data that may be crucial for your ambitions of international expansion.
Most common industries:
Industries favoured by investment incentives:
Most common legal form of business: Private limited company
Required no. of shareholders: at least 1
Required no. of directors: at least 1
Official company registers: www.rik.ee/en/e-business-register/e-business-register-portal
Who are tax residents: companies under Estonian law
Tax period: calendar month
Due date for CIT return: submission by the 10th day of the following month (there is no annual CIT return)
0% on the export of goods.
From 2025, the additional 13% reduced rate is applied to accommodation services
VAT registration for residents: when the total of taxable and certain tax exempt supplies exceed EUR 40,000 in a calendar year or voluntarily prior to that threshold
VAT registration for non-residents: when they have a permanent establishment and the taxable supplies exceed EUR 40,000 in a calendar year; under certain conditions, if no extended reverse charge is applicable by the VAT registered recipient of goods or services in Estonia, then non-resident should be registered for VAT from the date of taxable supply (without any threshold, unless the non-resident applies the special EU VAT scheme for small businesses)
Other applicable taxes:
Who is entitled to work in Estonia:
Types of employment contract:
Who are tax residents: Individuals who have a permanent place of residence (home) in Estonia or stay longer than 183 days during any 12-month consecutive period in the country
Tax period: calendar year
Due date for PIT return: April 30 of the following year
Taxable incomes in Estonia: employment income, business income, capital gains, rents and royalties, interest, dividends, certain insurance proceeds, pensions, scholarships, grants, prizes and lottery winnings, etc.
* In addition, 0.8% unemployment insurance contribution is paid by the employer
Health insurance contributions are included in the social security contributions
Doing business in Estonia can be simple if you have reliable support by your side. Entering the Estonian market opens up new possibilities as well as some challenges, but with help from skilled professionals, you can understand the local business environment and feel confident about your decisions. Whether you are starting a new company or expanding your current business, our team of Estonian specialists is ready to provide customized solutions that fit your needs.
Our range of advisory and BPO services in Estonia covers everything you need for your business, including tax, legal and corporate support, as well as accounting, payroll, HR and reporting tasks. We make sure all processes are accurate, efficient and fully compliant with Estonian laws and regulations.
Market entry support | Tax advisory and compliance | Legal advisory | Accounting and reporting | Accounting portal | Payroll outsourcing | Payroll portal | Attendance portal | HR administration | Transaction advisory | Transfer pricing | Company registration | Corporate and secretarial services | ESG reporting | Online consulting | Fixed service packages
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
