Estonia is a perfect spot for businesses of all sizes. In the latest proof, Swedish banking group SEB has chosen Estonia’s capital, Tallinn, as the headquarters for its consolidated Baltic operations, proving the country’s competitive business environment and strong financial sector. The merger of its Baltic subsidiaries is set to be completed by 2027.
The merger of the group’s Estonian, Latvian, and Lithuanian subsidiaries will boost the bank’s financing capacity and strengthen its position in the Baltic region.
SEB Baltic division director Niina Äikas explained that this consolidation will benefit the bank’s business clients in the Baltic countries, as the consolidated bank will be able to more effectively finance large and long-term projects, supporting regional economic growth.
The planned merger is also expected to benefit retail clients, enabling the consolidated bank to bring new products and services to the market quickly. Äikas says that SEB will continue to develop its business in the Baltics.
“SEB has operated as a unified organization in the Baltics for more than ten years, and now we are taking the next step in aligning our legal structure more closely with our operating model,” said SEB Estonia CEO Allan Parik. Pending the approval of financial regulators and the European Central Bank (ECB), the merger is expected to be completed by the beginning of 2027.
Estonia’s Minister of Finance Jürgen Ligi welcomed SEB’s decision, describing it as a strong endorsement of Estonia’s business-friendly environment. As Minister Ligi highlighted, Estonia has been trustworthy and transparent with investors, rules-based, and free from corruption, all while maintaining a favourable business environment.
Estonia also has had the OECD’s best tax regime for over a decade. The country has opposed a special bank tax and maintained its competitive corporate tax system, which only taxes distributed profits. Meanwhile, Lithuania introduced a 60% tax on bank profits that exceed the average of the previous four years. Latvia implemented a 20% solidarity tax on banks’ net interest income above €1M.
SEB has also benefited from Tallinn’s growing real estate market. Last year, the bank signed an €85 million loan agreement to finance the construction of the Arter Quarter business complex in the city centre.
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