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Saturday, 19th April 2014 02:35

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A STABLE AND COMPETITIVE ECONOMIC ENVIRONMENT

The costs of energy, labour, communication and transport services, as well as land and property acquisition, are all lower in Estonia than in the other states of the Baltic Sea Region. Entrepreneurs, who invest in Estonia, can achieve the same level of productivity and quality as in the Scandinavian countries, but their costs will be significantly lower. Estonian legislation has been harmonized with the EU acquis; the four freedoms (free movement of persons, capital, services and goods) are ensured. In terms of surface area and population, Estonia is one of the smallest countries in Europe – a fact that has its advantages and disadvantages. The progress of the Estonian economy in the last decade can, to a considerable extent, be attributed to the dynamism of our society as well as the willingness of our people to apply forward looking solutions.

One of the key factors behind the rapid economic growth in Estonia is the relatively simple tax-system, which has earned much praise from numerous foreign investors as well as international economic organisations.

 

The Corporate Income Tax on re-invested profit is 0% in Estonia, meaning that as long as the earned profit will stay in the enterprise, no tax will be paid on it.