Estonia

Estonia Map

PROPERTIES & RESIDENCE

Pros for obtaining a property in Estonia
Estonians have a visa-free arrival guarantee to 179 countries and territories ranking the passport 11th in the world. It includes visa-free travel to the US, Canada, Australia and New Zealand. It has been a long-time member to the Euro zone. Estonia has a very good business atmosphere and develops rapidly. Its business is strongly bonded and influenced by the Nordic countries.

Residence permits on the grounds of owning real estate
Real estate can become the assets belonging to the company you set up. There are no special residency options relying solely on property acquisition.

Residence permits on the grounds of company formation
The Estonian residency by investment is one of the best programs ever created and very reasonable. Residency is granted to entrepreneurs who invest into existing companies, set up their companies or operate as sole proprietors. The minimum investment amount to be granted residence permit by investment is 65,000 EUR, but if you are self-employed only 16,000 EUR is sufficient. Fixed assets and company's capital can be considered as the actual investment. Your entrepreneurial application will be evaluated based on a carefully prepared business plan.

"A digital nomad visa" - preconditions are working remotely for your own company and proving that you have a steady income from providing services to other companies. The minimum income required is around 3,500 EUR per month (in the 6-month period prior to the application) to be accepted to this scheme. This type of visa can be applied through the embassies. Check out our separate article for the Estonian E-Residency programs.

Taxes & Rental income tax
Estonia taxes worldwide income. Income tax is calculated on a monthly basis and on the basis of distributed profit. CIT is generally a flat 20%. Dividends are taxed 14%.

Which residence permits offer a path to permanent residency and citizenship?
Working, studying, marriage. In general 8 years of residency (including 5 years of permanent residency) on whichever residence permit may open the doors to beginning the naturalization process. There are exceptions to this rule that go around talent residence permits. The passport can be applied for after 8 years of residency.

Restrictions & Challenges
Estonia does not allow dual citizenship and the other nationality has to be terminated upon receiving the Estonian one. Language test must be taken to be approved for citizenship.

Estonia consistently ranks as a world leader in human capital, digital capability, and ease of doing business. This creates a competitive environment which allows solutions and services to be researched, developed and delivered globally. From multinational companies to high growth startups, Estonia has a two-decade track record of successful investments and innovations.

>Growth And Business Advantages

Estonia is a Northern European hub for Industrial, Supply Chain and GBS activity and a world leader in IT. As IT becomes the value driver across all industries, Estonia is uniquely positioned as the scalable location of choice for knowledge and digital business.

IT / R&D / software
Estonia is the world’s most digitally enabled nation, offering a unique combination of talent, environment, and innovation. Our IT R&D ecosystem enjoys global proof of concept, being trusted by global organisations such as Kuehne+Nagel and NATO and producing unicorn startups like Wise and Bolt.

Fintech
Estonia is a cashless society with over 99% of financial transactions occurring digitally. Electronic ID and Blockchain are widely used in FinTech applications. 80+ FinTechs ranging from innovative startups such as Wise to Blockchain leader Guardtime make Estonia a global centre of excellence for FinTech.

Cyber security
The most advanced cyber security country in Europe, Estonia has unique expertise in the research, development and management of cyber security solutions and systems. Home to NATO CCDCOE, Guardtime and Malwarebytes, Estonia is trusted to keep the digital economy safe.

Blockchain economy
Estonia developed X-Road, its proprietary decentralised, distributed system in 2001 and has utilised Blockchain since 2008. World-class technical skills supported by practical experience implementing public and permissioned Blockchain’s place Estonia at the forefront of the emerging Blockchain economy.

Swedbank has raised its forecast for Estonia's economic growth this year by 5 percentage points to 8 percent, up from 3 percent in the spring.

An economic growth of 8 percent would represent the highest growth for the past 15 years.

Swedbank said it raised its forecast for this year, as GDP growth in the first quarter of the year was stronger than previously expected.

"This sharp jump in growth provided additional momentum also for the rest of the year. This year's economic growth is going to be broad-based, driven by strong private consumption, investment and exports," Tonu Mertsina, chief economist at Swedbank Estonia, said at the presentation of the economic forecast.

Next year, however, gross domestic product (GDP) growth is expected to slow to 5 percent, according to Swedbank's latest Economic Outlook. In April, the bank expected growth of 4.3 percent in 2022.

The GDP growth forecast for 2023 by Swedbank is 3.2 percent.

The Swedbank Estonia chief economist said that the Estonian economy has quickly emerged from last year's recession. In particular, Estonia's GDP growth in the first quarter was one of the fastest among the countries of the European Union (EU), and the strong recovery of the economy continued in the second quarter.

Overall confidence in the economic sectors meanwhile has risen to its highest level in 14 years. The production volume of the manufacturing industry in June was close to its peak registered two years ago, and the growth in the sales volume of retail companies rose to double digits in the second quarter. Mertsina said that expectations for industrial growth and demand in the services sector are high for the near term.

REAL ESTATE TRENDS

As the first lockdown ended, many self-proclaimed real estate experts predicted a decline in prices. A year after those events, you can see that prices have not dropped, but have indeed increased. Worse still, in many EU countries housing prices rose faster than salaries. And that is cause for concern. Over the last decade, the price of real estate in Hungary has increased by 90.6 percent, and in Austria by 81.4 percent. However, the European record holders are Luxembourg and Estonia. In these two countries, real estate prices increased by respectively 99.8% and 112.8%! The real estate market has been very active despite the crisis because the interest in buying has been supported by wage rises in most sectors of the economy and by rapid growth in household deposits. Eesti Pank does not currently see any major problems in the real estate market, but looking forward the risks will increase of real estate prices starting to rise fast. Prices may rise rapidly because of a combination of factors, as Covid-19 is being brought under control and the restrictions removed, people feel increasingly confident, borrowing is cheap because of the monetary policy of the central banks, the banks want to lend on good terms, and more than a billion euros will be taken out of the second pension pillar in the autumn.

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Statistics

Capital City
Tallin
Currency
EUR
GDP Growth
2.9%
GDP Per Capita
€21,000
Annual Inflation
3.9%
Unemployment
9.9%
Avg net salary
€1,226
Avg salary growth
3.0%
Area (km²)
45000
Border states
LT, RU
Residence

By investment, self-employment or the "digital nomad" scheme

For Sale
Miniature
€566,500
For Sale
Miniature
€155,000
For Sale
Miniature
€223,000
For Sale
Miniature
€240,000
For Sale
Miniature
€170,000
For Sale
Miniature
€357,000
For Sale
Miniature
€273,000
For Sale
Miniature
€100,000
For Sale
Miniature
€600,000

Greece > Halkidiki > Pallini — Villa 150 m²

Greece > Halkidiki > Pallini
For Sale
Miniature
€610,000
For Sale
Miniature
€430,000
For Sale
Miniature
€211,000
For Sale
Miniature
€72,000
For Sale
Miniature
€195,000
For Sale
Miniature
€200,000
For Sale
Miniature
€499,000
For Sale
Miniature
€610,000
For Sale
Miniature
€127,000
For Sale
Miniature
€169,000
For Sale
Miniature
€550,000
For Sale
Miniature
€114,000
For Sale
Miniature
€305,544
For Sale
Miniature
€296,945
For Sale
Miniature
€235,000
For Sale
Miniature
€496,000
For Sale
Miniature
€410,000
For Sale
Miniature
€61,000
For Sale
Miniature
€302,500
For Sale
Miniature
€261,800
For Sale
Miniature
€700,000
For Sale
Miniature
€284,900
For Sale
Miniature
€260,000
For Sale
Miniature
€577,000
For Sale
Miniature
€134,500
For Sale
Miniature
€247,000
For Sale
Miniature
€671,000
For Sale
Miniature
€410,000
For Sale
Miniature
€127,000
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