Estonia is located in Eastern Europe and has a territory of 45,000 square kilometers. Estonia borders Lithuania and has access to the Baltic Sea, which allows it to establish on its territory maritime trade with Scandinavian states, as well as with Poland, Germany and a few other Western European states. Estonia has a population of 1,3 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - 0% if profits are not distributed, otherwise the standard tax rate is 20%
- Dividend withholding tax - Standard tax rate 20%
- Interest withholding tax - Standard tax rate 0%
- Royalties withholding tax - Standard tax rate 10%
- Capital gains tax - Standard tax rate 20%
- VAT - Standard tax rate 20% or a reduced rate 9%
- Personal income tax - from 20% up to 40%.
The following are the most common types of companies to incorporate a company in Estonia as:
- Limited liability company (Osaühing - OÜ)
- Public limited company (Aktsiaselts - AS)
- General partnership (Täisühing - TÜ)
- Limited partnership (Usaldusühing - UÜ)
- Commercial association (Tulundusühistu)
- European company (Societas Europea)
- European co-operative society (Societas Cooperativa)
- Branch office (Filiaal).
Official currency of Estonia is euro (EUR).
Estonia's GDP in 2017-2018 grew by 4,8% and amounted to USD 25.5 billion.
Shale industry, telecommunications and IT, textile industry, chemical industry, food industry, timber industry and wood processing industry, shipbuilding, production of electronic equipment remain key sectors of Estonian economy. Estonia produces all the necessary energy for itself, including electricity.