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.
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).