Listed below are some of the key features that set Estonian businesses apart from their competitors:
1. The corporate income tax rate in Estonia is unequivocally zero. This is good news, especially for those who want to start the process of Estonia company registration and owners who reinvest their profits rather than handing them out to employees.
2. As of 01.01.2011, nations like Finland, Lithuania, and others in Europe no longer need their companies to appoint a local person to their board of directors. So, none of the founders or board members needs to be EU or Estonian citizens.
3. No minimum size is required, and neither is it necessary to pay a salary to a member of the board (director) of the firm.
4. At the time of registration, it is optional to actually contribute the required capital (minimum 2,500 euros).
5. Without payroll and VAT numbers, the firm is not required to file any reports with the Estonian Tax Department.
6. Possibility to apply for a business visa valid for one year (and later three) at a time.
7. Banking services that are both trustworthy and reasonably priced are concentrated in Stockholm, the capital of Sweden, Norway, Finland, and Estonia.
8. In Estonia, a firm may take out loans from its shareholders in any amount, and the shareholder can cash out his yearly interest payments tax-free (for non-residents of Estonia).
9. The so-called black list of countries (offshore) formally certified by the Estonian Tax Department, transactions with which were liable to income tax, has been defunct since 2016.
10. A board member or the firm’s owner may apply for a residence permit in the country where the company’s operations will be based.
11. Purchasing property via an Estonian corporation might help you avoid paying taxes on your purchase.
12. Possibility of buying a business automobile with no or a reduced value-added tax bill.
13. No gas or vehicle transportation taxes for people or businesses.
14. Many nations have signed double taxation avoidance agreements with Estonia, including Austria, Armenia, Belgium, Belarus, Great Britain, Hungary, Germany, Holland, Ireland, Iceland, Spain, Italy, Canada, Kazakhstan, China, Latvia, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Portugal, Poland, Romania, Slovakia, Slovenia, USA, Turkey, Ukraine, Croatia, Czech Republic, Switzerland, Sweden, and the list goes on. Russia will be put on the list shortly, that much is clear.
15. A tax system that is easy to comprehend and navigate.
16. With its closeness to Russia, Finland, Sweden, and Latvia, Estonia has a good location.
17. The very minimum in terms of yearly financial outlay required to keep a business running (from €240 per year).
18. Internet banking is available in both Russian and English, and there are no minimum cash deposits required to service your company’s bank account.
19. Since Estonia has such a stellar reputation as a legal nation, setting up a bank account with any European institution is a breeze.
20. Most business permits just serve as notifications, and only a select few sorts of entrepreneurial activities need actual licenses.
21. With the advent of European domain zones, any domain name may be registered for use in online commerce and beyond (EU, EE, ES, etc.).
22. The concept of bureaucracy does not exist.
23. It’s perfect for nomadic professionals and companies in the arts and IT that don’t need a physical presence but want to reach customers worldwide.
24. You are eligible for no-cost medical treatment as part of your wage and tax payments. You have the legal right to get free emergency medical care at any of this nation’s publicly funded hospitals if your life is in danger while visiting another European country.
25. If you live in Estonia and pay taxes, you will eventually get a pension from the government.
26. Customers based in Europe are more likely to do business with a European Union firm than one based in Russia or another CIS nation.
27. Registering patents and trademarks for an Estonian firm in the EU is quicker and cheaper.
28. Estonian resident permits may be obtained without a yearly minimum of 183 days in-country.
If you want to open a company in Estonia, there is no better time than now! And Fintech Harbor Consulting can help you with this. Here you can also get help and advice on obtaining a Cyprus forex license.
