Estonia

estonia

Quick facts:

Territory 45,228 km2
Population 1.286 million (Jan 2013)
Currency Euro (EUR)
Capital Tallinn
Official language Estonian (Russian, German and English are widely spoken)
Memberships EU, NATO, Eurozone, OECD
Real GDP per capita 9,500 EUR per inhabitant (2012)
Growth of GDP, % 3.9% (2012). Forecast: 1.3% in 2013, 3% in 2014, 3.9% in 2015
Average gross salary 1,014 EUR (Aug 2013)
VAT rate 20% – general, reduced rates: 9% and 0%. Read more
Company Income Tax 0% on re-invested profit; flat 21% for distributed profit (paid to shareholders). Read more
Phone code +372
Top domain .ee

Estonia’s economic success of the past few years has been built on a stable currency, a liberal foreign trade regime, liberalisation of prices, abolition of state subsidies, fast privatisation and effective bankruptcy legislation. As a result, Estonia has advanced rapidly in terms of stabilising and restructuring the economy and has been rewarded with high levels of foreign direct investment. Estonia’s GDP per capita is one of the highest amongst the countries of the CEE region. The economy is boosted by close relations with Finland and Sweden and a liberal economy that is favourable to foreign investment. Since 2000, Estonia has been enjoying a 0% Corporate Income Tax (non distributed profit).

Rapid development of the communications infrastructure has created a situation where mobile technologies and the internet are used more widely in Estonia than in other EU countries. The country is a recognised leader in terms of implementation and use of e-Government, e-TaxBoard, e-Parking, e-Banking, mobile ID, mobile shopping and Digital Signature and other internet-based systems. The advanced IT & Communications infrastructure creates ideal conditions for businesses, thus, for instance, the Skype headquarters are located in Tallinn, where Skype itself was born. Free Wi-Fi internet points are available all over the country.

In 2012, Estonia launched a nationwide project for the creation of a charging infrastructure for electric cars and was the first country in the world that started to build a charging network.  Quick chargers of electric cars are found throughout the country to ensure the freedom of movement for all users of electric cars.

Key opportunity sectors: IT & Software, Energy & Renewable Energy, Metal Product Manufacturing, Machinery, Real Estate, Food Processing, Transportation & Logistics, Biotechnology and many others.

We have conducted various projects in market research, business partner search and data collection in Estonia. Please visit Our Experience section to see the specific industries of our expertise.