More than 1,500 Swedish companies are active in Estonia, and Sweden (53 percent) is accompanied by Finland (20 percent) for most of the accumulated FDI in the country.
Sweden is Estonia's third largest trading partner.
Corporate Taxes
Estonia has no corporate income tax which makes it very beneficial to operate in the country. For withdrawals of earnings, 21 percent are paid on the allotment of shares. A reduction in the distribution tax is underway and the goal is to reach 20 percent.
Income Tax
The income tax in Estonia is 21 percent and lacks progressiveness.
VAT and VAT registration
The VAT rate in Estonia is 18 percent on goods and services besides some exceptions that have a VAT rate of 5 percent. VAT registration is done with the tax authorities and may be a bit complicated since you must prove the operational needs of the VAT registration.
Employment tax
The Employment tax is a social contribution for employees and is at 33 percent, in which 20 percent is social insurance and 13 percent is health insurance.
Business insurance
No special insurance is required when starting the company in Estonia. In some areas (identified as areas of risk) liability insurance is required. Examples of such activities include travel agents and law firms
Cecilia Helland