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The most significant difference between Estonia's and Spain’s tax systems for entrepreneurs is the taxation of corporate profits and administrative simplicity.
Estonia operates a unique system where corporate income tax is only levied on distributed profits. This means businesses can reinvest earnings tax-free, which strongly incentivises growth and innovation. Estonia’s digital-first approach allows for fully online company management and tax filing, making it highly efficient and attractive for remote entrepreneurs.
Estonia’s flat tax system and minimal reporting requirements contrast with Spain’s multi-tiered tax brackets and more frequent filings, adding to the administrative burden for Spanish entrepreneurs. Read more here.
Large-Scale Investment Grant provides up to 15% of the project volume in support.
Large-Scale Investment Grant: Estonia has announced a €160M support measure to attract strategic investments, with the goal of drawing up to €1.5 billion worth of investment over four years. Each project should invest at least €100 million, create direct and indirect jobs, and can receive up to 15% of the project volume in support.
SmartCap: For a foreign investor or company, SmartCap represents a gateway to Estonia’s vibrant and forward-thinking investment landscape. Their focus on sectors poised for growth aligns with global trends, making Estonia a strategic choice for investment in Europe.
To explore more about SmartCap and the opportunities they provide, please see their website.
We can help you get started with your business in Estonia.
Personal advisory service Enterprise Estonia’s investment consultants provide professional advisory services to foreign investors throughout their investment process. They focus on knowledge- and capital-intensive foreign investments with high added value and export potential.
Their services include background information, investment proposals, stakeholder visits, consulting, project management, and post-investment care.
We have gathered a list of frequently asked questions to help you understand what Estonia has to offer.
Your contact at Invest Estonia is:
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| Kärt Klein Deputy Head of Business Development [email protected] +372 5453 0764 |
This grant is for companies registered in the Estonian Commercial Register. The state can’t own more than 49% of the applicant (or a company belonging to the same group as the applicant).
You can apply online through Enterprise Estonia. Before submitting a detailed project plan, we encourage you to contact your Investment Agency representative to discuss your idea, assess its eligibility, and outline the next steps.
There is no corporate income tax on retained and reinvested profits.
This means that Estonian resident companies and the permanent establishments of foreign entities (including branches) are subject to 0% income tax for all reinvested and retained profits and a 22% income tax only for all distributed profits (both actual and deemed).
