Bringing business to Estonia

Thinking about setting up a physical presence or hiring employees in Estonia for your growing business?

A key benefit of having a business presence here is to strengthen your ties to Estonia. This could make it easier to get a business bank account or boost your ability to have a corporate tax residency here. Plus, you’re closer to all the action in Estonia’s innovative startup ecosystem

Why have a business presence in Estonia?

Setting up an office or hiring local employees in Estonia are great ways to maintain a local business presence, which offers a range of benefits including:

#3

best country in EU for founders and startups

86%

adults speak at least one foreign language (English mostly)

29 570

Employees in ICT sector

Open an office in Estonia

Setting up an office in Estonia – ranging from a dedicated workspace in a coworking 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 or a 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.
Coworking hubs
A coworking hub is a flexible and cost-effective alternative to an office. Lift99, Spring Hub, UMA Workspace, 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.

Hiring staff for your business

When hiring employees for your Estonian company, your obligations as an employer will depend on whether they are resident in (1) Estonia, (2) the EEA or Switzerland, or (3) a third country.

The table below summarises the key things to be aware of when hiring. You can read more about Hiring employees for your company in our Knowledge Base

Labour relations
Registration
Salary and taxes
Relocating employee to Estonia
An Estonia 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

Further resources for hiring employees or relocating talent to Estonia

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.

Thinking of relocating employees to Estonia?