ESTONIA OFFSHORE COMPANY FORMATION

You are here:
tallin-estonia
creación-empresa-offshore-estonia-400x400

ESTABLISHING AN OFFSHORE COMPANY IN

ESTONIA

Estonia’s status as a non-tax haven is supported by its low tax rates, positioning it favorably for the establishment of commercial enterprises, holding companies, and other economic entities. Its legal framework provides a stable environment conducive to these activities, emphasizing compliance with international regulations and standards.

ESTONIA OFFSHORE COMPANY FORMATION

Estonia provides a conducive environment for establishing a commercial enterprise, a holding company, or any other economic activity. However, it is important to note that having a low tax rate does not grant this jurisdiction the status of a tax haven.

Setting up an offshore company in Estonia also carries significant advantages, particularly in terms of its positive brand image compared to offshore companies established in other countries (such as Georgia, Cyprus, etc.).

Establishing an offshore company in Estonia allows for the conduct of all legal activities without major constraints, except for those requiring specific licenses (such as forex trading, banking operations, financial services, insurance, etc.).

Furthermore, establishing an offshore company in Estonia offers the advantage of a highly attractive tax regime, characterized by a zero percent tax rate on profits.

Additionally, close commercial ties between Estonia and the Baltic countries as well as Russia foster the development of businesses in this country.

A company in Estonia can also function as a holding company, benefiting notably from an exemption of tax on dividends received from its subsidiaries.

what to know about Estonia

Estonia is a Northern European state and a member of the European Union. Since 2011, the euro has been the official currency of the country.

The Estonian population totals 1.3 million inhabitants, with 400,000 residing in the capital. Estonian is the official language, although Russian and English are widely spoken.

According to the Corruption Perceptions Index, Estonia ranks 17th among the least corrupt countries in the world. This ranking correlates with its reputation for high cooperation with the OECD.

Estonia enjoys a remarkable reputation as a financial center within the EU and benefits from a strategic position for trade with Russia.

Few people are aware that Estonia is considered a tax haven, and those who are aware do not consider its tax practices harmful. Thanks to its “e-residency” program, Estonia has made significant strides in the digital realm, offering all citizens the opportunity to manage all business-related formalities online.

Estonia is renowned as a favorable location for cryptocurrency businesses, whether for establishing an exchange platform or developing tokens.

ESTABLISHMENT OF AN OFFSHORE COMPANY IN ESTONIA

Incorporation in 3 business days.
No need for physical presence.
Cryptocurrency license.

USES OF AN OFFSHORE COMPANY IN ESTONIA

A good choice for managing and collecting commissions or royalties related to intellectual property.
Financial institution
Activities related to cryptocurrencies are regulated in Estonia. However, obtaining a license to achieve goals in this field is more straightforward. Indeed, establishing a company in Estonia can offer a more comprehensive solution than opting for incorporation in Malta, for example.
Investment funds
A country among the top 10 to offer benefits and facilities for the creation of private investment funds for cryptocurrency.
Holding
A holding is a parent company whose purpose is to bring together partners or shareholders who wish to acquire a significant influence in other companies.
INTERNATIONAL TRADE
A favorable jurisdiction suited for conducting activities such as e-commerce and import-export, with an exemption from income tax.
Consulting Services
To engage in consulting activities, such as a marketing agency, financial advisors, and software development.

BENEFITS OF FORMING A COMPANY IN ESTONIA

Share capital
A minimum capital of 2500 euros is required.
Accountancy
Monthly accounting is mandatory. Annual reporting is mandatory. Financial and cryptocurrency companies are subject to mandatory audits.
Residence
There is no restriction regarding the residence and/or nationality of the directors and/or shareholders.
Taxation
Exemption from profit tax, income tax, capital gains tax, and inheritance tax is legally stipulated. Additionally, there is a dividend tax of 20%, with the option to reduce it to 14% within the legal framework.
Confidentiality and Stability
A flexible legal framework that is not classified as a tax haven, characterized by political stability, modern orientation, and streamlined bureaucracy, adhering to robust legal standards.
Cryptocurrency License
The pioneer in Europe to establish legal and juridical safeguards for cryptocurrency.

16

Legal Experts

56

Fintech Licenses

100+

Company formation and management

ESTONIA COMPANY FORMATION MAIN CHARACTERISTICS

Incorporation time frame
3-5 days
Type of business entity
Coporate tax
0%
ISO standards
Available
Dividend tax
20%
Information concerning shareholders and directors
Available
EU VAT
EU VAT
EORI
Available
City
Tallin

LOOKING TO SET UP AN OFFSHORE COMPANY IN ESTONIA?

Schedule an appointment with one of our experts.