Estonia, a European Union member state since 2004, has harnessed a free market and pro-business economic environment since the year of its re-independence. Flexibility and openness are the characteristics and pervasive principles of Estonia’s economic policy. Estonia is an e-country with a favourable business climate and cost advantages that is also open to growth.
Estonia is accessible, both from a logistical and social point of view - Tallinn is within 3 hours flight from major European capitals and the power distance is very low. Also, as a front-runner is applying modern IT solutions, communications technology makes distances in Estonia irrelevant. As a border state of the European Union, we also have a highly developed logistic infrastructure that successfully enables to move goods, knowledge and people on the eastern-western direction.
Good Business Environment:
Extensively favorable business environment makes Estonia an excellent base for doing business. International organisations like World Bank, World Economic Forum, The Heritage Foundation and others have acknowledged Estonian economy as very open and competitive.
- 11th in Index of Economic Freedom 2014 - Wall Street Journal/The Heritage Foundation
- 22nd in Ease of Doing Business Report 2014 - World Bank
- 32nd in Global Competitiveness Report 2014 - World Economic Forum
- 28th in Corruption Perceptions Index 2013 - Transparency International
- 7th in the world for e-security 2011 - IMD World Competitiveness Yearbook
Estonia has some of the highest international credit ratings in the region. Standard & Poor: AA-; Moody's: A1; Fitch IBCA: A+.
Liberal Economy Policy:
Estonia´s government debt is among the lowest in Europe and the economy has shown considerable economic growth since joining the European Union and NATO in 2004. The Estonian cost level is gradually converging with the surrounding European Union, but still there are meaningful differences. Estonian taxes are low and simple, and labour costs are third of those in Sweden or Finland. The tax system is easy to understand with a flat income tax rate of 20% and tax-free reinvested corporate profit. The system of VAT (set at 20%) is in harmony with EU requirements.
Best business partners:
Estonian companies are reliable partners, due to:
- High quality products - Estonia is able to offer products and services from machinery to ICT.
- Skilled workforce - Estonian companies staff is highly-qualified. Estonian have a good work ethic, they get things done.
- Good price and quality ratio, flexible production quantities - Estonian companies will meet every buyer's needs and are capable producing low and also high volumes.
- Scandinavian business culture - The business culture is very similar to that found in the Nordics, with a focus on meeting deadlines and delivering results.
- Eurozone membership - Estonia, a European Union member state since 2004, has harnessed a free market and pro-business economic environment since the year of its re-independence.
Extensively favorable business environment makes Estonia an excellent base for doing business. Trading with Estonia is easy!