10 reasons why it is a good idea to hire in estonia

Estonia's digital prowess, skilled workforce, business-friendly labour laws and competitive tax model and just a few of the reasons to hire talent here

Estonia is a small country with a big impact. Known as one of the most advanced digital societies in the world, Estonia has become a magnet for startups, tech talent, and remote-first companies. If you're looking for a cost-effective, legally straightforward, and digitally seamless way to grow your team—Estonia should be on your radar. Here are 10 reasons why it is a good idea to hire in Estonia:

1. A 100% digital hiring experience

Estonia is the only country where you can hire, register, and manage employees fully online. Thanks to its e-⁠Residency program and advanced e-services, tasks like employment registration, salary declarations, and tax reporting can all be completed remotely via the e-Tax system. This eliminates bureaucracy and enables truly borderless business.

2. Skilled, tech-savvy workforce

Estonia is home to a highly educated workforce, especially in IT, engineering, and finance. With over 10 unicorn startups and a thriving tech ecosystem, the talent pool is well-versed in agile methods, remote collaboration, and international standards.

3. English-speaking professionals

Doing business in Estonia is easy for international employers - English is widely spoken, especially among younger professionals and in the tech and startup scenes. Many also speak Russian, Finnish, or German, making it easier to operate across multiple markets.

4. Business-friendly labour laws

Estonia's labour legislation is designed to be transparent, predictable, and flexible. The "employment-at-will" model allows for smoother contract terminations than in many other EU countries. Notice periods are typically shorter, and employment rules are clearly defined.

5. Competitive taxation model

Estonia is known for its simple, competitive, and growth-oriented tax system:

• deferred corporate income tax of 22% on distributed profits
• Flat personal income tax -currently 22% (with an additional 2% to be paid between 2026-2028)
• Clearly defined payroll taxes, including social security (33%), unemployment insurance (0.8%), and public health insurance

This system minimizes complexity and enables businesses to focus on growth instead of navigating complicated tax structures.

6. Affordable hiring and payroll costs

With an average gross salary of 1,981 EUR/month, there are strategic benefits to hiring in Estonia. The country offers good value compared to Western Europe. Onboarding costs (such as medical checks) are minimal, and no mandatory chamber or association fees apply. The result: lower overhead and efficient HR management.

7. Simple company formation process

Estonia makes it incredibly easy to start a business. You can:

• Establish a private limited company for €265 with just 0.01 EUR in share capital per shareholder
• Complete all registration steps online at the e-Business register
• Use standardized contract templates and name-check tools to fast-track legal formalities

It's possible to set up and hire digitally and within days, even if you're not physically in the country.

8. Global talent access without red tape

Estonia facilitates hiring non-EU talent through streamlined work permits—especially for IT and top specialists. The annual migration quota excludes growth sectors, making it easier to bring in key hires. Employment contracts can be bilingual (Estonian/English) and digital.

9. Supportive public infrastructure

Employers get free legal advice from the Labour Inspectorate (in English, Estonian, Russian, Ukrainian), and comprehensive assistance from the International House of Estonia in matters of migration, taxation, and onboarding. You’re not on your own—the system is designed to support foreign founders.

10. Powerful recruitment platform at your fingertips

Estonia’s leading job portal, CV.ee, offers the largest selection of job offers and access to a wide pool of candidates across all major sectors—from IT and engineering to sales and customer support. With smart tools and visibility options, CV.ee helps you reach the right talent more efficiently.

Bonus: Estonia is a safe and stable base

With a low crime rate, transparent governance, and predictable economic environment, Estonia offers more than just business convenience—it offers peace of mind. You can focus on growth while the system works for you in the background.

At CV.ee, we’ve helped hundreds of international companies successfully hire in Estonia -across industries from IT to customer support, sales, logistics, and more.

CV.ee end-to-end recruitment services are designed to save your time, reduce hiring risks, and connect you with the best local talent. Whether you’re looking for a single specialist or planning to build a full team, we’ve got you covered:

• Job ad copywriting design
• Access to Estonia’s largest talent database and passive candidates
• Pre-screening, video interviewing and skills assessments
• Employer branding support and visibility in the job market
• Recruitment campaigns with paid social media promotion
• Dedicated recruitment consultant and local market know-how
• Guarantee on successful hires

CV.ee Free Recruitment Package for e-⁠residents

Take your first step towards hiring in Estonia with CV.ee free starter package, exclusively for e-⁠resident entrepreneurs:

• 1x job ad on CV.ee work portal for 30 days
• Access to 50 CVs from our candidate database (valid for 12 months)
• Free 60-minute consultation with a CV.ee recruitment specialist - includes an overview of recruitment tools, strategy, and local hiring best practices

This starter offer is powered by Alma Career Estonia OÜ.

Discover all CV-Online hiring solutions and hire in Estonia - grow your team faster, smarter, and with confidence.