You should consider starting a business in Estonia!
With great tax optimization opportunities and a comfortable business environment, it just might be the best place to be starting a business or just keep your investments at as a holding.
Estonia is ranked as the country with the most competitive tax system in the world from 2013-2018 by OECD (Organization for Economic Development and Cooperation). The corporate tax system here works in a way that it doesn’t in any other country in the world – if you are a company owner, you do not have to pay any taxes from your yearly income. You can freely turn all of the profits into an investment or just keep it in your corporate account.
A flat 20% tax is paid for dividend distribution which is transferred from the corporate account.
This means that connecting your business to an Estonian business and starting your own business in Estonia makes for great tax optimization. Best part of it is that unlike typical tax havens such as the Virgin Islands, it is completely legal, tax optimization means that you are using the law, not breaking it.
The unique tax system is based on a law which has been active in Estonia for over 14 years, which brings stability to it, there is no danger it wouldn’t be around in a few years.
READ MORE ABOUT THE ESTONIAN TAXES IN DETAIL
In Estonia, we do not have a minimum share capital requirement for company incorporation (starting from 2023), you can even start a company with the share capital 0,01€.
The only real operating cost is accounting. If your turnover exceeds 40,000€ per year, you will have to have a VAT-registration and your accounting is obligated to do a monthly report. If your turnover is lower, only an annual report once a year is necessary. This is quite straightforward and cheap compared to Western Europe.
Registering your company in a time from 1st July to 31th December allows you to submit your first annual report for up to 1,5 years. For example, if you register your company in 24th August 2023, your first annual report has to be presented by June 2024.
Other costs might include Virtual Office (your company will need an address in Estonia) and if you reside outside the European Union you need the Contact Person service by law (someone to contact in the EU). Anson|Baer has a specific license to provide this service.
We are more than happy to help you with all of this, if you wish, you can have your company’s accounting, virtual office and contact person all with us.
READ MORE ABOUT OUR ACCOUNTING SERVICES
Estonia, despite the small area and population, has a lot to offer for tourists in variety. In the capital, Tallinn, You can find one of the most beautiful old towns in Europe dating back to the 13th century. Actually, Tallinn is included in UNESCO lists as the best preserved medieval city in Northern Europe!
When You want to get away from work, You can easily take advantage of the small distances in Estonia and travel to any corner of the country, to enjoy vast wildlife and nature sightseeing.
Even this is a great enough reason to run a company here, Estonia awaits!
We have a great national website as well, which focuses on reasons to stay in Estonia:
