pic-strategy
Basic information about Estonia
State Portal eesti.ee
National tax rates

Estonia

Population: 1.311 million people
Area: 45,339 km2
Official language: Estonian
Member of the European Union and NATO since 2004.
Participates in the Schengen area since 2007. Memeber of OECD. 
Currency unit: EURO
Estonia is ranked 9th in the World, the Heritage Foundation's index of economic freedom; 23rd in Corruption Percepitions Index and 29th out of 144 in the Global Competitiveness Report. Estonia in 17th in Easy of Doing Business Ranking.
Estonia has one of the highest credit ratings in the area-Credit ratings: Fitch A+, S&P AA-, Moody`s A1.
Estonia is one of the world's leading countries in the development of e-services. Estonia is 2nd in Internet Freedom.
In 2003 Skype was founded in Estonia.
In 2008 Cyber Defence Centre of Excellence was established in Estonia and it has been given International Military Organisation status and accreditation by NATO's Centre of Excellence.

More information about investment and business opportunities in Estonia below:

Investment guide www.investinestonia.com/en/Investment-guide/
Business opportunities www.investinestonia.com/en/business-opportunities/business-opportunities
Business environment www.investinestonia.com/en/business-environment

Safe online environment

Estonia has a safe online environment www.eesti.ee for communication with the state.

Portal contains:
Important and reliable information (on starting a business, tax system, legislation etc.)
All the e-services (e-Business Register, European Business Register, CompanyRegistration Portal, Tax and Customs Board etc.)
State agencies and their contacts

Portal contains a section "My Data", which allows: 
Using an official email address @eesti.ee
Creating, sharing and signing important documents
Using notification calendar service, which helps to remember various important matters when communicating with the state (expiry of the driver's license, ID card etc.)

For more information on the use of State Portal, see: https://www.eesti.ee/est/teemad/ettevotja/riigiportaali_abi

If you are doing business in Estonia, you will be responsible for paying taxes in accordance with the tax legislation in force in Estonia. The general rule is that all companies are taxed equally and on the same substantive basis. As to which taxes have to be paid at which rate, this depends on the specific characteristics of your company.

More important taxes are divided into 2 groups: 
Taxes resulting from salary (income tax, social tax, unemployment insurance premium, funded pension).
Minimum monthly salary in Estonia is currently 430 euros (2016). 
Taxes resulting from business activity (income tax, value added tax, fringe benefit tax, excise duties). 
Corporate tax does not apply since 2000.

The tax period shall be one calendar month and the deadline for payment and filing a return to the Tax and Customs Board is the 10th day of the subsequent month (20th day in case of value added tax).

Taxes resulting from salary

Tax name

Tax rate

Paid on what

Personal income tax

20 %

Paid on gross earnings, additional remunerations, bonus pay, holiday pay and other payments that are considered earned income. Tax-free minimum is 144 euros a month

Social tax

33 %

Paid on gross earnings and fringe benefits

Unemployment insurance premium

Employee's payment 1,6%

Employer's payment 0,8%

Paid to the employee on salary and other wages. The aim of the unemployment insurance premium is to insure employees against unemployment, collective termination of employment contracts or the insolvency of the employer

Funded pension

Employee's payment 2%

Employee pays on the gross earnings himself/herself. Joining the funded pension is compulsory for those born in 1983 or later (from the beginning of the following year after reaching the age of 18).

State's payment 4%

The state adds 4% out of the 33% of social tax that is calculated on the employee's salary

Taxes resulting from business activity

Tax name

Tax rate

Paid on what

Corporate tax

0 %

Paid on reinvested income

20/80

Paid on distributed earnings, expenses and payments not related to enterprise and on gifts, donations, costs of entertaining guests

Value added tax (VAT)

20 %

The general VAT rate is 20% of the taxable value of a good or service. An undertaking is required to register as a taxable person if his/her turnover exceeds 16,000 euros in a calendar year.

9 %

Paid on books (including textbooks and workbooks), periodicals, accommodation services and some medicines, health and hygiene products and medical equipment for personal use by disabled persons

0 %

Paid on exported goods, consultation services provided to VAT payers in another EU member state, services provided outside Estonia, a number of services related to water and air transport and carriage of goods

Fringe benefit tax

20/80 and 33 %

Paid on goods, services or the market price of monetarily appraisable gifts that an employer provides to his/her employee. Granting fringe benefits requires paying income and social tax and it is not possible to apply for a VAT refund on purchases of goods or services granted as fringe benefits

Additional information: Estonian Tax and Customs Board (Eesti Maksu- ja Tolliamet) www.emta.ee

Nele Rogenbaum
REGIONAL INVESTMENT ADVISER
Tel: +372 58505150
nele.rogenbaum@eas.ee

Logistic location
Key sectors in Lääne-Virumaa
Lääne-Viru industrial areas

2 important highways cross Lääne-Viru county: Tallinn-Narva highway (road no. 1; E20)
Sõmeru–Rakvere–Pärnu highway (road no. 5) 

Distances to significant destinations:
100 km to the Tallinn Airport and the Port of Tallinn (1 hour by car)
25 km to the Port of Kunda (0.5 hours by car)
120 km to the Russian border at Narva (1.5 hours by car) and Koidula border point
352 km to Riga (5 hours by car)
268 km to St. Petersburg (4 hours by car)
280 km to Pskov (4 hours by car)
187 km to Helsinki (1.5 hours by car and 2.5 hours by ferry)
665 km to Stockholm (1.5 hours by car and 15 hours by ferry)
640 km to Vilnius (7.5 hours by car)
1005 km to Warsaw (12.5 hours by car)

Based on the turnover in 2011, the most important economic sectors in Lääne-Virumaa are: 
Food industry
Timber industry 
Metal industry
Transportation and logistics
Textile and clothing industry
Farming system
Electrical and electronic equipment industry

This page assembles the information about Lääne-Viru industrial areas.