Simple and Low Taxes

Estonia has a system of low and flat rate taxes. The system is simple and is designed to encourage enterprise and maximize profits. To encourage companies to expand their business all corporate investments are exempted of corporate income tax from January 1, 2000. Only dividends are taxed with corporate income tax rate of 20/80 (of gross dividend).

The system of VAT (set at 20%) is harmonized with EU requirements and social and health insurance of 33% is applied. Foreign investors are guaranteed a level playing field with local firms, including unrestricted repatriation of profits and capital and the right to own land.