Free movement of services

The Services Directive's purpose is to facilitate the free movement of services within the European Union's internal market. Companies from EU member states have the right to offer temporary services without establishing a company or branch.

Restrictions of this right are permitted only for reasons of public order, security, public health, or environmental protection. The Treaty on the Functioning of the European Union defines a service as a fee-based industrial, commercial, artisanal, or freelance service. 

The EU Services Directive promotes the EU's fundamental freedoms: the right of establishment and freedom to provide cross-border services. It streamlines administrative procedures, removes barriers to service provision, and fosters trust in the internal market. However, it does not cover sectors like transport, finance, health, and social services.  


Estonian service providers can access necessary procedures via the Eesti.ee portal, while information about requirements in other EU member states is available through single contact points. 
 

Services can be provided across borders in five ways: 

  • establishing a new company in the consumer's country,

  • temporary presence in the consumer's country,

  • the consumer traveling to the service provider's country,

  • remote provision using communication tools, or

  • both parties going to a third country.

Additional information
European Union Services Directive
Handbook on the Implementation of the Services Directive
General Part of the Economic Activities Code Act

Notification of services


Directive 2006/123/EC, also known as the Services Directive, specifically in Articles 15.7 and 39 (transposed into Estonian law by the General Part of the Economic Activities Code Act, § 6 (9)), mandates that member states must notify the European Commission of new requirements for service provision. These requirements include:
 

  • Quantitative or territorial restrictions, such as population-based limits or minimum distances between service providers.
  • Obligation for the service provider to choose a certain legal form.
  • Requirements related to ownership shares in companies.
  • Restrictions reserving access to the field of service provision for certain service providers due to their service nature.
  • Prohibition of having multiple establishments or places of business in the same country.
  • Minimum employee number requirements.
  • Established minimum or maximum service prices.
  • Obligation for the service provider to offer additional services alongside their primary service.

 
Contact:

E-mail: [email protected]
 
 

Lisainfo
Notification of the technical regulation, e-service or service requirement
Service provision notification form
Temporary service provision notification form

Information Society services


Information Society services involve the processing, storage, and transmission of data in digital form using electronic means, with the parties not being in the same place at the same time.  
 
The most common Information Society services include:

  • Data transfer and storage services, as well as search services
  • Electronic magazines and newspapers
  • Banking service, insurance service, investments, and other financial services
  • Expert services (e.g. legal advice)
  • Entertainment services, advertising services, and other marketing services
  • Sale of goods (such as software and e-books; this also includes offering goods via electronic means)

If you have any questions or encounter issues related to Information Society services, you can reach out to us via email at [email protected] or [email protected]. 

Supervision and laws
 
Information Society services are regulated by the Information Society Services Act in Estonia. Compliance with the law is supervised by the Consumer Protection and Technical Regulatory Authority, and direct marketing-related compliance is monitored by the Data Protection Inspectorate.
 

Services of general interest


 Services of general interest are electricity, gas, education, sewage and water, post, broadcasting, social services and health care.
 
Member states use various definitions for services of general interest, influenced by their unique historical, economic, cultural, and political backgrounds. The term 'services of general interest' is derived from 'services of general economic interest,' although it is not explicitly used in the Treaty on the Functioning of the European Union.
The Services Directive specifically covers only services provided for economic purposes. Services of general interest provided for non-economic purposes, such as state primary and secondary education offered without charge, fall outside the directive's scope.
Regulation
 
The provision of services of general interest and access to them are regulated in detail by relevant legislation and European Union Protocol No. 26.
 

Last updated: 17.01.2024

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