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Estonia

A practical guide for tech companies using Estonia as a digital base for entering the EU.

Company setup onlineNo tax on retained profitStartup Visa
0%corporate income tax on retained profit (22/78 on distributed profit)

Source: EMTA, tax rates 2026

#1in the OECD for tax competitiveness, 12 years in a row

Source: Tax Foundation, ITCI 2025

144,000+e-residents, who have founded 44,000+ companies

Source: e-Residency dashboard, Sep 2026

1 yearlong-stay Startup Visa, extendable by 183 days

Source: Startup Estonia

01

Why Estonia

  • A company you can run onlineRegistration, tax filings and signatures are digital, and e-Residency lets founders handle them from abroad.
  • Tax only on distributed profitProfit kept in the company is not taxed, so cash can go back into growth before any corporate tax is due.
  • A small, reachable test marketWith about 1.36 million people, decision makers in government and business are easy to reach for a first EU reference client.

Source: Brand Estonia, Estonia in numbers · EMTA, income and social taxes

02

Priority sectors

SectorMain hubWho to know
Govtech and digital identityTallinne-Estonia Briefing Centre
Cybersecurity and defence technologyTallinnNATO CCDCOE
Fintech, payments and crypto-asset servicesTallinnFinantsinspektsioon
Health tech and e-healthTartuSparkup Tartu Science Park
Engineering, IT R&D and smart citiesTallinnTalTech

Source: Invest in Estonia

03

How companies enter

  1. Step 1Soft landingA first visit to Tallinn with booked meetings to test interest and meet partners and public buyers.
  2. Step 2PilotA paid pilot with a local client or partner, often still billed from home.
  3. Step 3Local companyAn Estonian OÜ (private limited company), registered online in the e-Business Register, with a local contact person if the board sits abroad.

Founders from outside the EU can apply for the Startup Visa once the Startup Committee confirms the company qualifies, then move to a temporary residence permit for entrepreneurship of up to five years, while e-Residency is a digital identity that gives no right to live in Estonia.

Source: Startup Estonia · Work in Estonia, Startup Visa FAQ

04

Costs to plan for

  • Company registration in the e-Business Register and a digital ID (e-Residency card or Estonian ID card)
  • Legal address and a licensed contact person in Estonia if the management board is abroad
  • Accounting, annual report and tax filings, with 22/78 corporate tax on any profit paid out
  • Salaries with 33% social tax on top, plus office or coworking space in Tallinn or Tartu

Source: EMTA, tax rates 2026 · e-Residency, legal duties of company owners

06 · How uGlobally can help

Plan your entry with Orbis

Orbis, our internationalization platform, checks if your company is ready, compares Estonia with other markets for your case and builds your entry plan, with the partners, potential clients and events to start with.

Rules, rates and costs change often, so check the current conditions with the sources above before you plan around them.

Considering Estonia?

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