Overview:

Estonia is a jurisdiction that allows doing business online, thanks to the active development of information technology and the introduction of electronic services in the sector of public services. Among the countries of Central and Eastern Europe, Estonia occupies one of the first places by the level of attraction of foreign investments, as well as by investments abroad per capita. The main trade partners of the country are Germany, Sweden, Finland, and Russia.

Entrepreneurs have long appreciated the innovative fin-tech legislation, attractive tax rates, and the market opportunities offered by this jurisdiction. A company registered in Estonia, including one founded by non-residents, can trade with EU partners on great terms, be engaged in the cryptocurrency business (Estonia is an ICO-friendly country), etc.

The country, a full member of the European Union, has signed double taxation treaties with more than 60 countries, including the United States and Great Britain.

Online company registration in Estonia with Clevver hand is an advanced and secure procedure that allows entrepreneurs to register a business in Estonia remotely and in the shortest possible time. Contact us for details here.

Taxation in Estonia

The main taxes that an Estonian company must pay are:

• Income tax. The main tax that Estonian companies have to pay is the income tax. A peculiarity of taxation in Estonia is that only the distributed profits of a company are taxed. The basic rate of tax on distributed profits is 20%.

An Estonian company must pay tax on distributed profits, on non-business-related income and payments, as well as on gifts, donations, expenses for receptions, and special benefits given to its employees (if any).

• Dividends are not subject to income tax if the latter is paid on the basis of the distribution of profits or the dividend is withheld abroad.
• VAT. The Estonian Value Added Tax (VAT) basic rate is 20%. Books, medicines, and some services are taxed at a reduced rate of 9%. There is a zero VAT rate for exporting various goods and services from Estonia, as well as for postal, medical, insurance, and international transport services.

Obligatory receipt of VAT number is stipulated by the legislation of the country if the capital turnover of the company is more than 40,000 Euros.

Formation of an Estonian Company

Economic stability, investment security, and developed banking systems attract many investors wishing to open a company in the Republic of Estonia to do business and use the mechanisms of avoidance of double taxation. 

Clevver specialists will readily support your Estonian company formation once you’ve applied to us and all is clear on both sides.

WHY CHOOSE CLEVVER: 

• The assistance of the highly qualified experts;   
• The online process of cooperation with Clevver;   
• A complete package of documentation on the company registration in a digital format;   
• Opportunity to obtain numerous extra to business incorporation services in Estonia (registered address, mail-handling service, and a local phone number); 
• Constant customer support and individual approach to each client.

Bottom Line

Estonia is an extremely advantageous European jurisdiction for creating and doing business. It is a state with one of the most attractive investment climates among European countries. Company registration in Estonia has a number of advantages, which are successfully used by entrepreneurs from all over the world, who wish to do business in the prestigious European jurisdiction. For detailed information on Estonian company registration, please, click here. With our help, registering a company in Estonia for non-residents is not difficult: the requirements for registration are minimal, and the procedure itself is simple and straightforward.

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.