Estonian Economy

Estonia is a small country located in the heart of the Baltic Sea Region - Europe’s fastest growing market of more than 90 million people. Attractive location between east and west, an excellent business environment, stable government and liberal economic policy, moderate costs and the ease of doing business have already attracted numerous international companies to Estonia.


Estonia’s open and stable economy is characterized by adaptability and innovation. With conservative budget policy, flat-rate income taxation, extensive freedom for foreigners to own land and 100% profit repatriation, Estonia is one of the most business-friendly countries not only in Eastern and Central Europe, but in the whole world.

Both domestic and foreign enterprise and capital are ensured equal opportunities.
Membership in the EU, the WTO, the OECD and the Economic and Monetary Union provide an additional boost for expanding foreign trade.
Extensively favorable business environment makes Estonia an excellent base for doing business.

During the economic crisis, Estonia managed to carry out important structural reforms, the most important of which was passing the most liberal labour law in the European Union. The strength of our financial policy is proved by the fact that after a long period of decline, Estonia was able to meet, with reserve, the criteria for joining the euro zone.

Estonia’s economic freedom is one of the highest in the world - ranked 9th out of 178 countries by annual survey Economic Freedom of the World and 12th in Ease of Doing Business by the World Bank.

Considerations for the investor:

  • A small Nordic country, having close economic ties with Scandinavia and Western Europe.
  • Member of the OECD since 2010.
  • A favourable geographic location by the Baltic Sea, a region of intense economic activities and growth potential with good access to Russia, the CEE countries and the EU region.
  • Member of both the EU and NATO since 2004.
  • Member of the WTO since 1999.
  • Part of the eurozone since 2011.
     

Sources:
Doing Business and Investing in Estonia, 2016, PwC 
Bank of Estonia
Estonian Investment and Trade Agency – tradewithestonia.com; investinestonia.com 
Visitestonia.com