business presence in estonia

    Be closer to all the action in Estonia’s innovative startup ecosystem. Boost your ability to have a corporate tax residency or business bank account in Estonia.

    Access a busy, supportive startup ecosystem

    Find over 110 organisations in Estonia, who are eager to support ambitious individuals and startups
    Discover Estonia’s startup ecosystem

    A highly skilled workforce

    Estonia is 15th globally in human capital potential maximisation with its simple and straightforward labour legislation.
    Read about the labour market

    Access an Estonian business banking account

    Connection to Estonia is advantageous (sometimes required) to open a business account with a bank in Estonia.
    How to access business banking

    Move your corporate tax residency to Estonia

    Setting up an office or hiring local employees can help you take full advantage of the Estonian tax system.
    Read more about cross-border taxation

    How can a foreigner create a strong business presence in Estonia?

    e-Residency makes Estonia the easiest EU country to register and run a company. While you can run your company remotely and digitally, maximize the potential by setting up a business base in Estonia. Find resources to help you below, including information on relocation, labour, hiring staff, and finding an office for your business.

    #1

    startup density in the European Union

    State of European Tech 2022

    86%

    of adults speak at least one foreign language (English mostly)

    World Economic Forum

    30,000+

    employees in the ITC sector

    Statistics Estonia

    Open an office in Estonia

    Setting up an office in Estonia – ranging from a dedicated workspace in a co-working hub all the way up to a factory – is a great way to maintain a business presence here. E-Residency does not give any right to move to Estonia, including to set up an office or store, so check the immigration requirements before making plans.

    Who to contact?

    Office/store

    To set up an office as a non-resident, speak to a service provider or contact: International House of Estonia, Tallinn Enterprise Department, or County Development Centers.

    Co-working hubs

    A co-working hub is a flexible and cost-effective alternative to an office. Lift99, Spring Hub, Technopolis, and Workland have many options. Find more here.

    Large scale investment

    Want to relocate your business entity – factory, IT or R&D center, SSC, etc. to Estonia? Contact the Estonian Investment Agency to learn more.

    Who to contact?

    Office/store

    To set up an office as a non-resident, speak to a service provider or contact: International House of Estonia, Tallinn Enterprise Department, or County Development Centers.

    Co-working hubs

    A co-working hub is a flexible and cost-effective alternative to an office. Lift99, Spring Hub, Technopolis, and Workland have many options. Find more here.

    Large scale investment

    Want to relocate your business entity – factory, IT or R&D center, SSC, etc. to Estonia? Contact the Estonian Investment Agency to learn more.

    Hire staff for your business

    When hiring employees for your Estonian company, your obligations as an employer will depend on whether they are resident in Estonia, the EEA or Switzerland, or a third country.

    The table below summarises the key things to be aware of when hiring.

    Labor laws

    Registration

    Salary and taxes

    Relocating employee to Estonia

    An Estonian resident

    Estonian labour laws are quite liberal, but principle of protection applies over employee

    Obligation to register new employees with the Estonian Tax Board

    • Payroll taxes payable in Estonia
    • Salaries subject to Estonian minimum wage
    • Must report fringe benefits

    Not applicable

    A resident of EEA or Switzerland

    Check labour laws in employee’s country of residence

    Your company may need to register as a foreign employer in employee’s country of residence

    • Income and social tax payable in employee’s country of residence
    • No tax reporting or payment obligations in Estonia
    • Can work in Estonia for up to 3 months before registering address
    • Payroll obligations will depend on where employee is a tax resident
    • Has a right to temporary residence of 5 years extendable
    A resident of a third country

    Check labour laws in employee’s country of residence

    Your company may need to register as a foreign employer in employee’s country of residence

    • Income and social tax payable in employee’s country of residence
    • No tax reporting or payment obligations in Estonia
    • Need to obtain a legal right to temporarily stay in or reside in Estonia
    • Once employee has legal right to stay, requirement to register short-term employment
    • Work permit quotas apply for many third countries

    Labor laws

    An Estonian resident

    Estonian labour laws are quite liberal, but principle of protection applies over employee

    A resident of EEA or Switzerland

    Check labour laws in employee’s country of residence

    A resident of a third country

    Check labour laws in employee’s country of residence

    Registration

    An Estonian resident

    Obligation to register new employees with the Estonian Tax Board

    A resident of EEA or Switzerland

    Your company may need to register as a foreign employer in employee’s country of residence

    A resident of a third country

    Your company may need to register as a foreign employer in employee’s country of residence

    Salary and taxes

    An Estonian resident
    • Payroll taxes payable in Estonia
    • Salaries subject to Estonian minimum wage
    • Must report fringe benefits
    A resident of EEA or Switzerland
    • Income and social tax payable in employee’s country of residence
    • No tax reporting or payment obligations in Estonia
    A resident of a third country
    • Income and social tax payable in employee’s country of residence
    • No tax reporting or payment obligations in Estonia

    Relocating employee to Estonia

    An Estonian resident

    Not applicable

    A resident of EEA or Switzerland
    • Can work in Estonia for up to 3 months before registering address
    • Payroll obligations will depend on where employee is a tax resident
    • Has a right to temporary residence of 5 years extendable
    A resident of a third country
    • Need to obtain a legal right to temporarily stay in or reside in Estonia
    • Once employee has legal right to stay, requirement to register short-term employment
    • Work permit quotas apply for many third countries

    Further resources for hiring employees or relocating talent to Estonia

    Estonian labour relations

    Get more information about laws, regulations, agreements and contracts that are at the base of Estonian labour relations.

    Registering employees

    Remember to register your employees at the latest by the moment when the employee starts the work. You can do this in the Tax and Customs Board online portal.

    Recruit and relocate

    Consider hiring in Estonia, where there is a highly skilled, English-speaking workforce, particularly in the information technology and professional services sectors. Plus there is low unionisation, simple and straightforward labour legislation, and easy hiring processes.

    Recruit great local talent from: MeetFrank, CV Online, Euraxess Estonia, CV Keskus.

    Relocate foreign talent with the help of trusted partners such as Jobbatical or MoveMyTalent. Find more recruitment and relocation service providers on our Marketplace.

      Learn about cross-border taxes

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      Learn about taxes in Estonia

      Discover the features which make Estonia a low-risk, cost-effective place for e-⁠residents to start a business.
      About taxes in Estonia

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