Estonia – Company Opening and Accounting

When registering a company abroad, it is worthwhile to study this or that jurisdiction in more detail, as well as its advantages for setting up your business.

One of the remarkable features of the Estonian tax system is the complete absence of corporate income tax, i.e., we have a 0% tax rate.

An Estonian company does not pay income tax until it pays dividends. If the company does not distribute profits in the form of dividends, the income tax for such a company is 0%.

In Estonia, there is no corporate income tax in the form commonly used in Europe, i.e. as a certain percentage of the difference between income and expenses. The profits of Estonian companies are taxed only if they are distributed to the founders or used for non-production purposes (for example, to pay for a banquet or pay out financial aid). If the profit is reinvested in the business, no taxes are paid.

At the same time, there is no currency control in the country, and residents (both individuals and legal entities) can keep their funds in foreign bank accounts without restrictions.

What other advantages does the Estonian tax system offer?

For residents of Ukraine, the rate is 5%.

The land tax is deducted from the land value.

The land tax does not take into account the value of real estate or capital.

Estonia has 58 double taxation treaties in force.

Since 2014, Estonia has had an e-residency program that allows foreigners to fully utilize the services of the Estonian e-state, including registering companies online and remotely managing their business projects from anywhere in the world. As a result, more than 25,000 Estonian companies have been established by e-residents to date.

These aspects form the basis of the Estonian tax system, which emphasizes transparency and efficiency of tax processes.

All of the above and current changes in Estonian legislation, registration and opening of a company, accounting from scratch, reporting and auditing are possible with the help of Phoenix International Finance with the help of experts and practicing accountants and auditors from Estonia.

We are always ready to help with business issues and provide advice on all relevant inquiries regarding the company’s activities in Estonia.

With the help of experts and practicing accountants and auditors from Estonia, Phoenix International Finance provides registration and opening of a company, accounting from scratch, reporting, and auditing.

Opening a Company in Estonia