Prikhodko&Partners
Services
International corporate law
Business Setup and Support in Estonia INVESTMENT IN ESTONIA

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

INVESTMENT IN ESTONIA

Why should you invest in Estonia?

First of all, belonging to the EU, Estonia also has the highest rating of market economies in the world – it has a favorable environment for foreign investments without a tax policy on reinvested company profits.

It ranks 12th in terms of ease of doing business in the world according to the World Bank, so investing in this country is very easy and profitable. This country has an increased level of digital society and the possibility of electronic business. Through the introduction of the electronic presidency, it is possible to control your business online. Relatively simple and stable tax system with 0% income tax on retained and reinvested profits

Banking and many other services and opportunities to do business easily and online, 99% of banking transactions are done online, Annual statements are usually prepared and filed online, and tax returns and transactions are prepared and filed online.

In addition, Estonia has a competitive economy that supports multinational companies and startups

Therefore, when choosing a jurisdiction for investing in foreigners and Ukrainians, many questions arise:

“Why should you invest in Estonia?”

“What types of business or real estate should you invest in Estonia?”

“What is the return on investment in Estonia?”

“What are the advantages of investing in Estonia?”

“How much money is safe to invest in Estonia?” and there are a lot of such questions.

Investment lawyers of Yk Prykhodko and partners will help you decide on an investment object, choose options specifically according to your request, as well as assess investment risks.

Why investing in Estonia is profitable:

Stability of the economic system
Belonging to the EU
Ease of doing business, doing business remotely
Open opportunity for small and medium-sized businesses
Development in many areas
Absence of currency control

Where is the best place to invest in Estonia? The most developed types of investment in Estonia are

Investing in real estate in Estonia
Investing in precious metals in Estonia
Investing in securities and shares in Estonia
Investing in startups in Estonia
Investing in a business in Estonia

With regard to business investments, the following areas are attractive:

The field of IT
Electronics
Logistics
Industrial digitalization
Energy

Estonia has a niche potential in the design and development of hardware and software solutions for intelligent transport, urban planning, tourism, and smart homes. Advanced digital infrastructure, skills, and consumer perception are the perfect test bed for research and development.

How to properly invest money in Estonia and not lose everything?

Our team of investment lawyers will help you with the following questions

Determine the optimal amount of funds for investment
Decide on the type of investment (real estate, business, startup, etc.)
Will select optimal objects for investment
Will do due diligence on the investment object
Will prepare the necessary investment agreements to protect your interests as much as possible
Supports “turnkey” all investment and profit-making processes

Is there really no corporate income tax in Estonia?

Estonia applies a deferred taxation system. This means that while profits remain in the company’s accounts or are reinvested in its development, the corporate income tax rate is exactly 0%. Tax is paid only when funds are distributed in favour of the founders.

What is the current tax rate on dividends? (Does the 14% preferential rate still apply?)

The preferential 14% tax rate on dividends was completely abolished from 1 January 2025. Currently, all distributed profits (dividends) are taxed at a single rate of 22% (calculated using the 22/78 formula on the amount of the distribution).

Can I open an account with a traditional Estonian bank remotely?

No. Traditional Estonian banks require proof of a close economic connection with the country (substance) — the presence of a genuinely leased office in Tallinn and employed resident staff. For remote businesses operating through e-Residency, the optimal and reliable solution is to use licensed payment institutions (EMIs) that provide full IBAN accounts.

Is a company required to pay a salary to its director?

Estonian law does not require a company to pay a mandatory salary to its director. If you are a tax resident of another country and do not live in Estonia, you may also be exempt from paying Estonian social tax (33%) provided that social insurance coverage in your country of actual residence is confirmed.

What are the conditions for obtaining a residence permit through business?

A successfully operating business is a lawful basis for obtaining a residence permit. The legislation requires an investment of at least EUR 65,000 in the company’s share capital for shareholders, or at least EUR 16,000 if the business is registered as a sole proprietorship.

Successful cases on the topic: