Principal assets
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In 2018 Index of Economic Freedom (prepared by the Heritage Foundation) Estonia is ranked 7th out of 180 countries.
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The Ease of Doing Business index by the World Bank (2017) sets Estonia at the 12th position.
20%
Corporate income tax only in respect to all distributed profits (both actual and deemed)
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In Corruption Perception Index Estonia is ranked 21st out of 180 countries.
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Via Estonia’s e-services client can run an Estonian company remotely.
Facts
Official name | Republic of Estonia |
Capital and Largest city |
Tallinn |
Official languages | Estonian |
Government | Unitary parliamentary republic |
History | Estonia is a small country located at the heart of the Baltic Sea Region. Attractive location between East and West, an excellent business environment, stable government and liberal economic policy, moderate costs and the ease of doing business have already attracted numerous international companies to Estonia. Estonia’s economic freedom is among the highest in the world. |
Area | • Total: 45,227 km2 ; 17,462 sq mi • Water: 4.45% |
Population | • 2019 estimate: 1,323,824 • 2011 census: 1,294,455 • Density: 28/km2 ; 72.5/sq mi |
GDP (nominal) | 2019 estimate: • Total: $31.179 billion • Per capita: $23,653 |
Currency | Euro (€) (EUR) |
Time zone Summer |
EET (UTC+2) EEST (UTC+3) |
Taxation
Estonian resident companies and the permanent establishments of foreign entities (including branches) are subject to 20% income tax only in respect to all distributed profits (both actual and deemed).
Distributed profits include:
- corporate profits distributed in the tax period
- gifts, donations and representation expenses
- expenses and payments not related to business
- transfer of the assets of the permanent establishment to its head office or to other companies
Starting from January 1, 2018 – the corporate income tax rate on regular profit distributions was lowered from 20% to 14%, but only in cases where dividends are paid to legal persons.