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Doing Business in Estonia

Hungary will be the first country on the planet to raise a sculpture of Bitcoin's <strong>mysterious</strong> creator, who will get a life existence size bronze bust in Budapest. The main design plans have been <a href="https://telex.hu/tech/2021/05/31/bitcoin-szobor-latvanyterv-kriptovaluta-blokklanc" target="_blank" rel="noreferrer noopener">uncovered</a> showing a hooded figure concerning both the unknown Satoshi Nakamoto and "individuals of the web."

Posted by Hicham ALAOUI RIZQ on 09 Nov, 2020

Introduction ​

Estonia or the cousins of the Finns is a Nordic country located just next to Russia and under Finland with:

An area of 45 225 Km2, Its currency is Euro, It has a population of 1.3 million that is a size of a nation to become a testbed for new technology that could be tested quickly and effectively

Europe's hub for digital knowledge and ease of doing business

Estonia became the world's first country to function as a digital service which is a really unique model at a national government level, Which takes further its state services overseas by its program called e-residency. This means anyone outside of the country could easily register a company online, digitally sign and exchange documents. This program is considered a remarkably powerful asset for anyone's business because it allows you to interact with the European Union without necessarily having to be there.

Key sectors

Transport and Logistics,
Business services
Machinery and metalworking
Wood industry
Food industry

Key figures

23b Euro GDP in 2017
Currency: Euro
3h to start a company
OECD tax competitiveness
20% value-added tax
0% tax on reinvested profits

Estonian startup ecosystem

Nearly 1000 startups 
Global top per capital
Raised around 1B Euro in funding (92% from abroad)
Estonian startup visa
Supportive ecosystem 

Ease of doing business

hassle-free e-taxation

The cornerstone of Estonian businesses are entrepreneurship and export, that's why the state sticks heavily to creating an attractive business environment by reducing the scale of bureaucracy. Tax reporting is fully filled online

The corporate tax rate in Estonia

As it is clear in the tableau, there is a 0% tax on reinvested profits, which means if the money stays in the company and is not redistributed as a dividend, there is no tax on that profit. The personal income tax used to be flat, but now it is progressive and basically, around 20% and VAT is 20%.


Companies that are registered in the e-business register will be automatically recorded into the taxpayer's registry. In Estonia, all taxes are reported online via E-MTA (E-tax system).