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Advantages of Estonian offshore

29. 11. 2022
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If you want to register an offshore company in a reputable jurisdiction, look at Estonia. While the other countries do not consider it an offshore zone, it is still possible to save on taxes in Estonia. For example, a company pays income tax only if the income has been distributed among the shareholders. As long as this has not happened, it can be reinvested in the business. And this is not the only advantage of the Estonian offshore jurisdiction.

Advantages of Estonia

Estonia is an ideal option for start-ups and small businesses that are not tied to a place of work. It is particularly suitable for companies whose activities are related to digital business, e.g., freelancers, programmers, etc., because the country provides many public services online.

So, you can manage your business remotely if you have an e-residency card. You can use digital signature to process documents and contracts and submit annual reports electronically. However, e-resident's card is not the equivalent of an Estonian passport or residence permit. It is necessary to obtain them separately.

Tax Features

Estonia is not a tax haven but it boasts simple and fair taxation. Tax returns are filed in Estonia in 3 minutes, and almost all fees can be paid online. Zero percent in retained earnings allows companies to invest in themselves.

Also, the following things are not subject to taxation:

  • office rent in a co-working space;
  • office equipment;
  • purchase of transport or real estate (or VAT can be refunded), if they are registered to an Estonian company;
  • expenses for meals and accommodation;
  • business trips.

All this is beneficial for both start-ups and large companies, as it allows them to grow and actively develop their business.

Entering an international market

Among the advantages of registering an Estonian offshore is easy access to the international market:

  • Estonia is one of the most developed countries in the Baltic region, and it's unique in terms of the availability of government e-services. 
  • The country is a reputable jurisdiction with wide trade relations.
  • Estonia has direct access to the EU and Schengen countries. The country has signed double taxation agreements with many countries around the world.
  • Complete absence of bureaucracy in comparison with other EU countries.

Features of doing business

When registering a company you have the opportunity not to pay the share capital of €2,500. Owners of Estonian companies and board members can be citizens of other countries. It is not required to have a local director.

Among the advantages are the following:

  • A non-resident board member can get a residence permit for up to 5 years.
  • License is required only for a few activities (crypto industry, finance, etc.). In other areas you can safely start working immediately after registration.
  • A virtual office can be used instead of a physical one.
  • Simplified registration of intellectual property (patents and trademarks in the EU).
  • Only large companies are required to be audited.

There is also no requirement for the payment of the CEO's salary. Accordingly, you can save on taxes even more. If the salary is not paid, you must not report to the Estonian tax administration and do not have to apply for a VAT number.

How to open a company in Estonia

To register an offshore company in Estonia, contact IT-OFFSHORE experts.

Apply now

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