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International corporate law
Business Setup and Support in Estonia LOAN FOR BUSINESS 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.

LOAN FOR BUSINESS IN ESTONIA

Business financial support programs in Estonia

In Estonia, the public sector helps to develop enterprises, both those that have existed for a long time and those that have just started. Enterprise and KredEX, state economic agencies, offer their grants and services for business, the financing of which comes from the state budget and the EU,

Of course, each proposal for obtaining such a loan is subject to detailed consideration and verification.

In what cases can you get a business loan in Estonia?

A business loan is intended for starting a new business or running an existing business. With its help, you can pay rent and staff, buy new equipment, in short, take care of all expenses related to commercial activities.

Banks that can provide business loans:

Coop Rank – amount from 50,000 to 1,000,000 euros, interest rate from 5.5%, terms of such a loan from 1 year to 20 years.

Bag Bank – amount from 1,000 to 5,000,000 euros, from 8%, from 1 month

Laen. ee – 1,000 to 20,000 euros, annual rate from 18%, terms from 6 months to 5 years.

What documents are required to obtain a business loan in Estonia?

To be eligible for a business loan, you must provide the following documents:

Identity verification (both for a company and for an individual)
Proof of address (voter ID card, passport, or driver’s license)
Bank statement for the last six months.
Income documents for the last two years.
Continuation Confirmation (ITR, Business License, Sales Tax Certificate)

To take out a business loan, the company must meet the following requirements:

Companies registered and operating in Estonia can apply for a loan.
The company or its board members must have a good credit history. Active debts before the Tax and Customs Department are a reason to refuse a loan.
Business loans in Estonia are issued to limited liability companies (OÜ), joint-stock companies (AS), and individual entrepreneurs (FIE).
The company must present a profit and loss statement to prove its solvency. If the company is new, the credit institution will most likely require a business plan.

What loans can be granted?

Loans can be provided for start-ups, for existing businesses, as well as in case of additional costs for equipment and business equipment, as well as loans in case of business expansion.

What can you get besides a business loan?

If you need up to €20,000 to start or run your business, you can use the following options.

Small loan. This is a great option for those who want to open a small business. This loan can be used for any purpose. It has a relatively low-interest rate. In addition, it does not require a deposit.

Credit account. This option can become your financial safety cushion in unforeseen cases. By opening a credit account, you will have access to a limited amount that you can spend at your discretion at any time. The client pays interest only on the money spent. The only drawback is the high-interest rate.

Quick loan. This option is recommended to be used in circumstances of force majeure, for example, if you urgently need to repair equipment, and there are no funds for this at the moment. A quick loan is issued within a day, however, as in the case of a credit account, it has a high-interest rate.

Our services are priced from 200 euros per consultation and subsequent support.

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: