Estonia is one of three Baltic States located on the east coast of the Baltic Sea. Estonia is a democratic republic with the largest city being the capital Tallinn.
Estonia joined the European Union in 2004 which subsequently lead to an increase in foreign investment. Prior to the global recession in 2008-096 Estonia had one of the fastest growing economies in the EU however since the recession the economy has contracted. Regardless of this fact Estonia is still a very sound proposition and a good platform for emerging new growth. Estonia has seen an increase in GDP since 2010 with an increase in of 3.3% in 2011.
Historically Estonia’s trade was tied to the Eastern Europe however since becoming an EU member and due to the fact that Estonia has a very liberal business agenda with little bureaucracy, it has refocused its trade from East to West and turned itself into a vital trading link between the CIS, Russian and Western Europe.
Key benefits of Estonia:
- Good geographical links with excellent links to both Eastern and Western Europe
- Stable political environment with EU and NATO membership
- Estonia’s openness to business has been globally recognized. The Heritage Foundation ranked Estonia 14th in their Economic Freedom Index of 2011. The World Bank ranked Estonia 17th in its ‘Doing Business 2011’ report.
- OECD member
- Liberal, western business culture with English and Russian widely spoken
- Existing links with Russian and CIS markets and Western Europe enable companies to trade easily
- Highly developed banking system with most Estonian Banks being run by Swedish, Norwegian or Finnish banking institutions.
- Relatively low corporate tax rate of 22%
- A young, well educated, innovative and competitive labour force
- Estonia ranks highly with regards to economic freedom, democracy, press freedom, political freedom and education.
Estonia provides the perfect climate in which to incorporate a company. Please contact us if you require our Estonia Fact Sheet and Fee Schedule.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.
Cyprus tax department releases new guidance on CRS deadlines and the online portal
The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).
Hong Kong establishes AEOI agreement with Indonesia
Last week, Hong Kong finalised and signed an agreement with Indonesia to allow for the automatic exchange of financial information (AEOI) regarding all tax matters.