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Business Setup and Support in Estonia RENT OF ADDRESSES FOR THE COMPANY. VIRTUAL OFFICE IN ESTONIA

Yaroslav Shevel

Lawyer

E-mail

shevel@prikhodko.com.ua

Phone numbers

An expert in corporate and international corporate law. He has many years of experience in establishing and reorganizing companies, supporting M&A transactions, as well as providing legal support for opening and running a business in the EU, Asia, and North America.

RENT OF ADDRESSES FOR THE COMPANY. VIRTUAL OFFICE IN ESTONIA

Estonia has become one of the most attractive places to do business, especially for startups, IT companies and entrepreneurs working in the digital environment.

The main advantages of doing business in Estonia are e-residency, simplified tax system and minimal bureaucratic procedures.

However, one of the requirements for registering a company in Estonia is to have a registered legal address and a contact person (if the founders are non-residents). That is why many entrepreneurs choose to rent a legal address and a virtual office.

According to Estonian law, every company must have:

Legal address – the official place of registration of a company, which is used to receive mail from government agencies.
Contact person – if the founder or manager of the company is a non-resident, he must have a representative who will contact government authorities.

Please note, If a company does not have a physical office in Estonia, it can use the services of a virtual office and renting a legal address.

According to Article 28 of the Estonian Commercial Code, the legal address must be indicated in the register and be available for receiving official notices.

What is a virtual office and legal address rental?

Legal address rental is a service that allows you to register a company in Estonia without the need for a physical office. The provider provides the company with an address that is indicated in official documents.

Main functions:

Receiving official correspondence
Entrepreneur’s notification about incoming mail
Sending documents at the client’s request

A virtual office is a more comprehensive solution that, in addition to a legal address, includes:

Virtual secretarial service
Call answering and forwarding
Meeting room rental
Business support

This option is ideal for international companies that want to have a presence in Estonia without a physical presence.

It will also be useful: TAX CONSULTATION IN ESTONIA

Benefits of using a virtual office in Estonia

Simplifying company registration – no need to look for a physical office or buy real estate.
Cost reduction – renting a virtual office is cheaper than a traditional office.
Compliance with legal requirements — having an official address allows a company to operate legally.
Confidentiality – company owners can use the service provider’s legal address without disclosing their own data.
Flexibility – you can manage the company remotely, without a physical presence in Estonia.

There are also potential risks, such as:

Unreliable supplier – some companies may not fulfill their obligations, which will lead to problems with government agencies. Therefore, you need to choose proven suppliers with good reviews and reputation.
Limitations in the use of the address – not all legal addresses are suitable for opening a bank account. Therefore, before renting, you need to check whether the bank recognizes this address.
Possible problems with tax authorities — if a fictitious office is suspected, additional checks may occur. Therefore, you should use a virtual office legally and not engage in shady activities.

How to choose a reliable service provider?

License and reputation – check if the company has permission to provide legal address services.
Work experience – choose companies that have been operating on the market for at least 3-5 years.
Contract transparency – read the terms of the contract carefully before signing.

Cost of renting a legal address and virtual office in Estonia

Legal address – from 300 to 700 euros per year
Virtual office (basic package) – from 70 to 100 euros per month
Virtual office (with additional services) – from 150 euros per month

The cost may depend on the location of the address (e.g. Tallinn is more expensive) and additional services (e.g. answering calls or accounting).

Who is the virtual office service suitable for:

For freelancers and IT companies – to run a business without a physical office.
Startups – to quickly launch a business in the EU.
International companies – to expand their operations in Europe.
Investors and entrepreneurs – to gain access to the Estonian tax system.

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.

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