Advantages of doing business in Estonia

General information about the business environment in Estonia.

Estonia´s advantages

• Location
The geopolitical location of Estonia, its compactness, logistical abilities, and thousands of years of experience in communicating towards the northern, the western and the eastern direction give us a unique position.
We belong to the North and form a part of one of the most valuable regions of Europe, the core of which is Scandinavia. This is also expressed in our sense of aesthetics, our appearance and temper.
Common logic would say that we don’t have an attractive sales market. The practice, however, has proven that Estonia has a considerable development and production platform for International knowledge-based companies (such as Skype, Ericsson, ABB etc.).
As a border state of the European Union, we also have a highly developed logistic infrastructure that successfully enables to move goods, knowledge and people on the eastern-western direction.

• Ease of doing business
Estonia has an investment-friendly taxation system, and transparent and functioning legislation. We aim at liberal economic policy where private property is sacred and untouchable and all entrepreneurs are treated equally.
As we have modest market volumes, there is no direct need for artificial protection of our own market participants. Therefore all new investors and external partners are just as welcome here as the entrepreneurs who have operated here for years.
Economic freedom, ease of doing business rating, per capita investments, the record-low national debt, belonging to the euro zone, low corruption index – all these factors show that there is something about Estonia that is worth taking a closer look at. We are like the Switzerland of the North, only our taxation system is considerably more up-to-date and user-friendly.

• People
Estonia is inhabited by smart people of equally high level of education and good communication skills. Starting from the 17th century, Estonia has been one of the most outstanding countries for its average level of education in Central and Eastern Europe.
We understand what we are told and we can talk back. Estonia is one of the few countries with no historical relations to England where clearly over 50% of the population understand English.
Estonia is one of the most sparsely populated countries in the world. Estonians are poised, honest and hard-working people who do not speak much but keep their promises. This originates from our persistent culture that has slowly developed over the ten thousand years we have inhabited this land. Estonia also has the world’s largest collection of folk songs.
Time has proven that thanks to our forward-looking nature, we are able to adjust to all changes fast and efficiently – we are the world champions of adjustment.

• Infosphere
Estonia is characterised by information and communication technology that functions on the grass-roots level and connects the people with the state. We are a country meant for people where systems serve the interest of people and make our lives fast, convenient and safe.
It is not just about the Internet but our way of thinking. We can use (information) technology in order to create a convenient infrastructure that matches the slightly introverted nature of our people. Skype is a good alternative to talking to the neighbour when there is a snow blizzard outside. ID-card enables to perform bank and state operations even if the closest bank or state authority is kilometres away.
In Estonia, broadband internet is a human right not a privilege.
It is no wonder that Estonia is one of the most powerful start-up countries, that we host both the cyber security centre of NATO and the IT-agency of the European Union and that more than 90% of the people complete their income tax return over the internet.

The information and materials have been composed by and used by courtesy of Enterprise Estonia and Estonian Tax and Customs Board.