Why UK businesses choose Estonia for EU Growth
Over 1,500 UK businesses choose Estonia as their gateway to EU growth. From freelancers to tech startups and established multinationals, a growing number of British businesses leverage Estonia’s world-class environment and infrastructure to navigate the post-Brexit landscape. Here are 5 strategic reasons why UK businesses choose Estonia:
Affordable capability development
Estonia has world class capabilities in technology, defence, energy, industrial and business services.
This allows UK businesses to access advanced skills, infrastructure, and solutions and EU growth in one strategic move.
Relative size makes it affordable to acquire an Estonian company, or establish a greenfield operations. Acquisitions by UK and US companies are increasing in Estonia (and other Baltic States).
EU growth opportunity
Securing frictionless access to EU gowth is a key reason why UK businesses choose Estonia.
An Estonian company operates freely in the EU, at 450m consumers and EUR 18tn output a market which is multiple of the UK.
Eurozone membership (21 countries) and harmonised procedures reduce risks and costs when trading across borders.
Estonian company birth rate gives proof of concept…
The number of Estonian companies grows rapidly, with foreign operators increasing active:
Lean corporate management
Administration of an Estonian company is significantly easier than its UK equivalent.
Low barriers to entry include minimum share capital from EUR 0.01 per shareholder, and one-off costs from EUR 415 for e-Residency and state formation fees.
Operating costs are also low, from EUR 1,000 annually for accountancy and representation. Extensive use of electronic identity, digital contracts, and automated reporting streamline admin and enable remote corporate management.
World-class business environment
Estonia operates a ‘low red tape’ approach which makes it a competitive place to do business.
Language proficiency is high, and most state, commercial and financial services are available in English.
Estonia and the UK have a strong relationship. Double taxation treaties exist since 1994, and links grow across business, politics, education and culture.
Unique tax system
Estonia’s tax system is unique in Europe and one of the most efficient in the world. A flat structure and online reporting reduce the risk of errors, and make compliance easy.
Corporate income tax is payable when profits are distributed and 0% at all other times. Upon distribution, CIT is c. 28% effective rate (each case specific) versus a UK rate of 19-25%.
An Estonian company is incentivised to re-invest, but is also able to determine when CIT is payable based on realised profits, helping liquidity.
TrustBooks: Helping UK businesses choose Estonia
TrustBooks provides accountancy, taxation, and consulting services to clients with an Estonian company. Our British and Estonian staff have extensive experience in helping UK businesses choose Estonia and grow.
Ready to get started? Contact TrustBooks today for a free consultation.
