Estonia has become the target of major investors around the world. This small Eastern European country knew how to make a 180° turn in the way it conceived its political, social, and economic organization. After regaining its independence in 1991 and realizing that the same method would only yield the same results, Tallinn decided on a model of economic openness and promotion of foreign investment, which, 30 years later, is still paying off.

Culture, landscapes, tourism, history and much more is within reach for those who decide to take the step of moving to this beautiful Baltic country. Although Estonia has a small population of foreigners, this number has been steadily increasing in recent years.

This small country combines spectacularly preserved medieval architecture, with the results of large capital flows translated into impressive modern buildings, something that is certainly eye-catching for the eye and for lovers of tourism. The low cost of living and great opportunities for enjoyment are undoubtedly very attractive to ex-pats interested in living in this nation.

In addition to its natural beauties and cultural attractions, Estonia has put in place large machinery to promote foreign investment as well as immigration. The e-Residency program is unique in its kind and is primarily aimed at making life easier for the holder. The possibility of accessing the entire Estonian State’s infrastructure without the need to leave home, and moreover, without the need to be in Estonia is something that for many countries in the world sounds more than utopian. Estonia made utopia a reality. 

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A Very Friendly Place

Estonia is one of the friendliest countries in all of Europe, and not only in terms of the state and its promotion of foreign investment but also its people. The Estonian nation shares the behavior of its government and is widely open to welcoming foreigners. According to many nomads and nationals from various countries who have settled in Estonia, interacting with the inhabitants does require a little bit of effort, but that outdoor activities, such as cycling, canoeing, sailing, among others, are excellent for interacting with the natives.

In addition to this, one might think that the language barrier is quite difficult to break down, given the difficulty of Russian and especially Estonian, the two most widely spoken languages in this country. However, a high number of nationals have a more than acceptable dominium of the English language, which can serve as a huge ice breaker, as the foreign inhabitant begins to master the native languages.

An interesting quality that plays in favor when it comes to socializing is that a large number of those who decide to settle in Estonia are young people. Students, new investors, and workers are constantly looking for, and most of the time, they manage to insert themselves within a social group in which they feel comfortable, and which is not necessarily composed of compatriots, but they are also accepted within the social groups of Estonian majorities.

Estonia has emerged as a destination for everyone. Whether it is for young people looking for new personal and work experiences, or families looking to settle in a quiet and peaceful country with great political and economic stability, this Baltic country offers conditions for everyone. It is worth getting to know it, visit it and stay there if it is to your liking.

Cost of Living 

Living in Estonia is considerably cheaper than in many other European countries. According to portals such as Numbeo, the rental prices for an apartment in the center of Tallinn range from EUR350 to EUR700, a very affordable cost given the minimum wage in Estonia.

And many of the job offers in Estonia do not pay only the minimum wage. And if you are an investor who came to Estonia to set up a new business, you will not earn only minimum wage, so living costs in this beautiful country are more than affordable.

Generally speaking, for an individual living in Tallinn, costs will range between EUR1000 and EUR1400 per month. Considerably cheaper than in other European cities such as Barcelona or Stockholm.

Taxation

As we have mentioned in past articles, Estonia's constant promotion of foreign investment and the creation of new businesses and companies extends to its tax policies. We are already familiar with the corporate tax, whose rate in Estonia is 20%, but which can be exempted if profits are not distributed to shareholders, but reinvested. And like this ease, the Estonian government promotes many more. For example, land tax has one of the lowest rates in the whole of Europe (between 0.2% and 2.6%), with the peculiarity that it is only levied on the value of the land, not on investments, constructions, or modifications made on it. This is quite interesting.

In addition to the advantages for companies and businesses, we should also talk about personal taxes. In Estonia, as well as the corporate tax, there is a 20% tax rate on all capital gains, although exemptions also apply for annual incomes up to EUR 14,400.

Along with these benefits from the Estonian administration, tax exemptions extend to school scholarships, reimbursement of business expenses, insurance claims, and the most peculiar and perhaps the most attractive, to lottery winners.

And as if all this were not enough, it is also obligatory to mention the multiple double taxation treaties that Estonia has with more than 50 countries, among which it is worth mentioning Canada, the United States of America, the United Kingdom, Cyprus, and China. The investment opportunities are there and are accompanied by friendly tax policies.

Rhythm of Life

Life in Estonia is characterized as a fairly peaceful and respectful calm. The native Estonian is known for a high commitment to their duties and a strong work ethic, which keeps them committed to their tasks until those are complete.

These people are generally reserved and dedicated to their own affairs. Anyone moving to or starting life in Estonia should not expect the warmest of welcomes or a deep relationship with any of their neighbors. This is not to say that they are asocial or have anything against immigrants, it is simply the way they are. They may not engage in conversation all the time, but neither will they engage in disrespect.

Engaging with an Estonian takes time and patience. It is not like in other parts of the world where it is enough to have a couple of opinions in common to start bonding. In this small country, people will not be immediately inclined to engage in deep conversations, let alone show big feelings, but they will help you when you might need it.

Estonia has the coldest climate of the Baltic republics, where precipitation is mostly concentrated in the summer. If you are a lover of cold weather, you will like this climate. Travel agents, expats living in Estonia, and its citizens themselves strongly recommend those planning to visit or move to this country to have a large winter closet, which is the clothing used during most of the year.

This climate has transformed many aspects of daily life and has made people appreciate things that in other countries would be considered eccentricities. For example, in tropical countries, or countries with hotter summers, property increases in value if it has swimming pools or other methods to counteract the heat. In Estonia, it is the opposite. With an average annual temperature of 3°c very few people would want to spend their days in a swimming pool, so a very common attraction in Estonian properties is the presence of private saunas, something that would no doubt be extravagant elsewhere in the world.

A huge draw of daily life in Estonia is that residents of Tallinn are served by free public transportation. Buses, streetcars, and other means of transport covering the internal routes of the Estonian capital charge no more than the purchase of a green card that allows permanent access to these transports. It is part of urban policies aimed at reducing the emission of pollutants, as well as ease savings for Tallinn residents.

E-Life

Although for native Estonians it is already an everyday occurrence, for someone who has just moved to the country or has just learned about the great opportunities offered by investing in it, discovering the enormous digital presence of Estonia and its institutions is simply impressive.

It is extremely rare for a country to have a digital infrastructure that can contain within it virtually all the practices and activities of everyday life. Banking, opening and managing businesses, consulting and paying taxes, checking government portals and much more can be done with a computer and internet connection (which in Estonia is one of the fastest and most stable on the planet) and an e-Residency Card (for non-citizens). This is awesome and undoubtedly adds more positive points to this great little country.

At Mundo, we are committed to your growth, and your company’s as well. Our wish is that it grows and you can enjoy the enormous advantages of living and work in Estonia. Access to European markets, the possibility of working in any other country of the European Economic Area as an Estonian citizen, and the great corporate and personal tax advantages only make this Baltic nation more attractive.

Contact us today and start the process of obtaining your E-Residency and then start your business in Estonia.

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