Five Key Reasons to Invest in Estonia
- Ideal geographic location – close integration with Scandinavian countries, proximity to Russia and good connections with Central Europe make Estonia an effective transit country. Quick travel possibilities for managers – most major European cities are reachable by air within just a couple of hours.
- Stability – stable and reliable financial system thanks to transparent government policy, easy-to-understand taxation system, transparent regulations and strong links to Scandinavian banks.
- Simple taxes – no corporate income tax on reinvested profits. All taxes in Estonia can be declared via the e-Tax Board which makes paying taxes very easy and simple.
- Access – ministers and other decision makers are highly accessible and problems can be addressed directly and quickly.
- Low cost of labour – A well-educated, skilled and multilingual labour force costing on average one-third of Scandinavian labour prices. A healthy mixture of younger and more mature experienced professionals.
Estonia is a country located at the heart of the Baltic Sea Region – Europe’s fastest-growing market of more than 90 million people. It is a country characterised by political and economic stability, accessibility, ease and low cost of doing business and investor equality.
As the government reform policy has remained relatively consistent and liberal, the priorities being price liberalisation, fast privatisation, effective and to-date legislation and a stable currency, Estonia has attracted one of the highest levels of foreign direct investment per capita in comparison to other transition economies. The overall government attitude is very welcoming toward foreign capital, especially into sectors that are export-oriented, innovative and support regional development.
Estonia is ranked 21st out of all countries in the Ease of Doing Business index by The World Bank Group. Estonian business life has largely reoriented from the east to the west and today, the business regulation is less rigid than in the neighbouring Nordic countries.
The Estonian cost level is gradually converging with the surrounding European Union, but there are still meaningful differences. Estonian taxes are low and simple, and labour costs are a third of those in for example Sweden or Finland.
Foreign investors have played a decisive role in building Estonian economy. Estonia has not based its attraction of FDI on specially-designed support schemes but it is its favourable business environment that makes the difference.
Foreign investors are treated equally with the local undertakings. Estonia has neither created favourable conditions for local undertakings nor established noteworthy restrictions to foreign equity under the same conditions. Estonia has never offered short-term benefits or public support programmes to attract foreign investors. And this policy has, in turn, guaranteed a constructive stability.