A balanced, constitutionally protected budget, a free trade regime, a fully convertible currency, and a competitive banking sector have all contributed to Estonia’s success, and its ranking of 18/190 for Ease of Doing Business. Estonia has some of the most liberal investment, trade and property rights in Europe.
The country is strong and well developed in the FDI-attractive fields of IT, biotechnologies and green industries, and Estonian subsidiaries often function as outsourcing sites for Scandinavian parent companies.
However, Estonia requires a constant flow of foreign investment to maintain its economic expansion. The country has a very pro-business legislative framework, but its small domestic market is sensitive to external fluctuations, and its location limits land access to the rest of the EU. The location itself dictates a high dependency on Russia and imports from Scandinavia, and its small population gives Estonia weaker purchasing power than the rest of the EU.
That said, Estonia’s corporate tax rate is relatively low compared to other Nordic countries, and all reinvested corporate profits are exempt from income tax. In addition, the government has decided to focus on entrepreneurship for the period 2015-2020 and seeks to create a highly competitive environment where it is easy to create and develop businesses.
AUXADI can become your ideal investment partner in Estonia. We offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.