There are over 550 startups in Estonia – the third highest number of startups per capita in Europe.
Among those 550 startups you will also find four Estonian unicorns: Skype, Playtech, Transferwise and Bolt (formerly Taxify). This begs the question: why are there so many startups emerging from a small Northern European country?
According to EU-Startups.com latest article the reason behind such a high number of startups in Estonia is the fact that the Estonian government has over the years implemented numerous entrepreneur-friendly tax policies and has actively created strong incentives to attract foreign investors, mainly in the IT sector but also in niche sectors such as FinTech.
The online publication also brings out the fact that Estonia has a flexible corporate tax framework that is attractive to foreign companies looking for a suitable business environment for their activities.
Undeniably, the most attractive aspect for entrepreneurs is the tax system. Estonia has no corporate income tax on retained and reinvested profits which provides a perfect opportunity for companies to rapidly grow and expand their business. Money that otherwise would go to the government can now be used to enhance your business instead.
In addition, Estonia was the first country in the world to introduce the e-Residency program - a program that gives non-residents online access to various Estonia’s public services. This allows you to establish and manage your Estonian company completely remotely without ever visiting Estonia.
In June 2019, Forbes reported that Tallinn, an upcoming startup hub and the capital of Estonia, has already begun attracting heavy investment.
A one of a kind digital ecosystem, entrepreneur-friendly tax policies and an advantageous business environment all make Estonia a good choice for businesses looking to conquer the world.
Interested in forming a startup in Estonia? Contact us to learn how you can benefit from the Estonian startup ecosystem.
There are 550 startups in Estonia ready to conquer the world