Estonia has the best tax system in Europe?

What expats and digital nomads should know about Estonian tax system in five easy points.

1. Simple and Efficient: Estonia has a simple and efficient tax system that is easy to understand and comply with. The tax code is streamlined, and most tax returns can be filed online in a matter of minutes.

2. Flat Tax: Estonia has a flat income tax rate of 20%, which is one of the lowest in Europe. This means that everyone, regardless of income level, pays the same tax rate.

3. No Corporate Income Tax: Estonia does not have a corporate income tax. Instead, companies are only taxed on the profits they distribute as dividends. This encourages reinvestment and growth.

4. E-Residency: Estonia's e-Residency program allows non-residents to establish and run a business in Estonia from anywhere in the world. This makes it an attractive location for entrepreneurs and small businesses.

5. Low Tax Burden: Overall, the tax burden in Estonia is relatively low compared to other European countries. This makes it an attractive destination for businesses and individuals looking to minimize their tax liabilities.

These factors have helped Estonia's tax system become one of the best in Europe, attracting both individuals and businesses to the country. Once you move to Estonia, you´ll be positively surprised by the e-services the country has to offer and the simplicity of the tax system.

Six Reasons to Move to Tallinn, Estonia

Updated 02.01.2024

Tallinn, Estonia is a hidden gem of Europe that is increasingly becoming popular among expats and digital nomads who are looking for a high-quality of life, modern infrastructure, and a vibrant cultural scene. It's a small country with a population of just over 1.3 million people, but it packs a lot of punch when it comes to offering a great lifestyle to its residents. In this article, we will discuss the top reasons why you should consider moving to Tallinn, Estonia.

1. Affordable Living

Estonia has a relatively low cost of living compared to other European countries, especially in terms of housing, rental apartments, food, and transportation. The country has a unique tax system with no Corporate Income Tax as long as profits stay in the company, and a flat tax rate of 22%, which makes it an attractive destination for entrepreneurs and investors. It can be said that Estonia has the best tax environment currently available in the EU. The cost of healthcare and education is also reasonable, making Estonia an ideal destination for families and for people looking for a new home.

2. Quality of Life

Estonia has a high quality of life, and it is ranked as one of the happiest countries in the world. The country has a low crime rate, a clean environment, and a well-developed healthcare system. The education system is also highly regarded, and the country has a literacy rate of over 99%. Estonia has a good work-life balance, and people here value their leisure time.

3. E-Residency

Estonia is the only country in the world that offers e-Residency to non-residents, which allows you to run your business from anywhere in the world. You can apply for e-Residency online and get access to Estonian business services such as banking, taxation, and company registration. This makes Estonia an ideal place to start and run a location-independent business.

4. Advanced Technology

Estonia is one of the most technologically advanced countries in the world. It has a robust IT infrastructure, and most of the government services are available online. The country is home to many successful startups, and its capital, Tallinn, is known as the Silicon Valley of Europe. This makes Estonia a perfect destination for people who work in the technology sector

5. Natural Beauty

Estonia is a country of natural beauty, with over half of its land covered by forests and a long coastline along the Baltic Sea. The country has numerous national parks, lakes, and rivers, which offer plenty of opportunities for outdoor activities such as hiking, cycling, and fishing. The country's natural beauty makes it an ideal destination for people who enjoy an active lifestyle.

6. Cultural Scene

Estonia has a vibrant cultural scene, with numerous museums, art galleries, and theaters. The country is home to the world-renowned Estonian Philharmonic Chamber Choir, and its capital, Tallinn, has been designated as a UNESCO World Heritage Site. The country also hosts many festivals and events throughout the year, including the Tallinn Black Nights Film Festival and the Estonian Song and Dance Festival.

Conclusion

In conclusion, Estonia is a great place to live, work, and raise a family. With its advanced technology, high quality of life, natural beauty, vibrant cultural scene, and affordable living, Estonia offers a unique blend of opportunities that are hard to find elsewhere in the world. Whether you're an entrepreneur, a tech professional, an artist, or a nature lover, Estonia has something to offer you. So why not consider moving to this beautiful and welcoming country?

If you have questions about relocating to Tallinn, Estonia or are looking for an apartment to rent long term, dont hesitate to contact us.

How to rent an apartment in Tallinn, Estonia?

Updated 02.01.2024

If you are thinking of moving to Tallinn, the vibrant capital of Estonia, then you are probably faced with the question on how do you look for and find rental apartment ? Luckily for you, the city has a great quality of living and lots of rental apartment options that can fit almost every budget. Unlike many other centers of European capitals, Tallinn is still affordable to many expats despite apartment and rent prices rising for the past decade. The renting process is quite straightforward in Estonia and the quality and accuracy of listings in real-estate portals is these days high.

Where to Start looking for a Rental apartment in Tallinn?

You can connect with a real-estate agent to help you in your search or you can start on your own. If you decide to use help, good real-estate agencies are for example Kurg & Korsten and Uusmaa, but there are plenty more to select from. The agent will help you in finding your dream home in Tallinn, show you the apartments, and help you with rental agreements also. In Estonia, the tenant pays for the agent fee (if a real-estate agent is involved), which is usually one months rent. Note that most of the advertisements in the largest portals are by agents contracted by landlords, so you as a tenant may have to pay the agent fee, even if you are doing the apartment search yourself. The only option to avoid the agent fee is to find an apartment direct from the owner which can be challenging at times.

There are two main real-estate portals in Estonia, kv.ee and city24.ee. These two portals have lots of listings available and many listings are available in English also. If not, you can use Google Translate to get an idea of the offers. Viewing the apartment in person is anyway recommended and many landlords speak English, but just be a aware this is not always the case. Facebook groups are another place to look for apartments without agents, but in our experience these groups list mostly cheaper apartments, so they may not match with what you are looking for.

Your NEEDS for renting an apartment?

The first and biggest decision you have to make is which area of Tallinn you wish to make your home. The most prestigious areas are “Kesklinn” (Center) and Kadriorg. Especially in Kesklinn everything you may need is within walking distance and the center is becoming increasingly pedestarian friendly with lots of green initiatives in the near future. If you wish to be close to all the services and living in a central location then Kesklinn can be a good option. Tallinn is relatively small city compared to its European capital peers, so you wont be overwhelmed by traffic or noise, and you will be able to find peaceful apartments even in the Kesklinn area.

The historical old town “Vanalinn” has also good rental options available, if you prefer to be close to services and restaurants and don´t plan to get a car as parking is very limited in the area. Its also good to note that the old town get a bit touristy and noisy during the summer months. While the central areas mentioned here are not generally considered as expensive by expats, its obvious that the apartments and rents are more expensive in these areas and the offers tend to get cheaper the further you move away from the city center.

Kalamaja, is also a popular and vibrant neighborhood worth mentioning. Once a working-class district, Kalamaja has undergone a remarkable transformation, becoming a popular choice for young professionals, families, and art enthusiasts alike. However, Kalamaja's popularity has also brought challenges, particularly in terms of traffic congestion. The narrow streets often become bottlenecks during rush hours, causing frustration for drivers. The ongoing development of the nearby Paljassaare peninsula is expected to exacerbate these traffic woes, as more people and vehicles are drawn to the area. Regardless if you are planning to move by car or by public transport, this is an important factor to consider.

Generally, moving around Tallinn is easy as public transport works well and is free for Tallinn residents. Bolt, the local Über competitor is also a very good option to move around the city and works really well.

Once you´ve decided the area you wish to live in, its time to start looking for an apartment.

WHAT TO KNOW BEFORE RENTING IN TALLINN?

• The price of renting an apartment in Tallinn varies by district and the condition of the apartment. The easiest way to compare is to look at the €/m2 price of each apartment.

• The rental price of an apartment in Kesklinn is currently between 12€/m2 to 20€/m2. The average price in Kesklinn according to KV.ee statistics is currently 14.1€/m2 so an average 50m2 two room apartment would rent for around 700€ per month. Its good to note that there is a higher amount of apartments available in the lower price category, so if you want a modern apartment in a new development or a fully renovated designer apartment in a historical building you should be prepared to pay rent around €850-1000€ per month for such a two room apartment.

• Some landlords request cash payments for rent but most professional landlords wish to receive rent by bank transfer. In case you pay in cash, make sure to ask for a signed receipt on each payment.

• The utilities (electricity, water, heating) in Estonia are paid by the tenant on top of the rent. Depending on the energy efficiency of the house, your personal consumption and the season you can count this cost to be approximately 100-200€ per month in addition to the rent. Depending on the landlord and house, you may need to make your own electricity contract and with average consumption your electricity bill will be 25-40€ per month.

• Most landlords require a one months rent as deposit to cover for potential damages and non-payment situations. In case you have pets this deposit can be equal to two months rent. Many landlords do not accept pets in the apartments.

• The number of rooms in Estonia is marked as per actual rooms in the apartment. So something marked as a three room apartment has two bedrooms, living room, kitchen, and bathroom.

• If you need a parking space, some listings have this included. An underground parking garage may feel unnecessary in the summer, but in the wintertime its definitely a plus.

• Make sure the agreement you enter is clear to you. You can find a sample rental agreement from Work in Estonia website in English here.

• Always make sure the landlord allows you to register officially into the apartment, this may be needed for living permit and other official state processes.
  
  Tallinn is a great city to live in and we are sure you wont regret your choice. If you wish to know more about moving to Estonia or would like to know which apartments we currently have available you can find our contact information here.