Estonia free zones in 2022

Estonia currently counts with 3 operational free zones i) Paldiski Free Trade Zone ii) Muuga Free Trade Zone and iii) Sillamae Free Trade Zone. Healy Consultants will assist our Clients to prepare a quality application to be submitted to the free zone authorities.

Advantages

  1. Companies registered within the zone can benefit from the following tax benefits:
    • Exemption from custom duties;
    • VAT exemption for goods in transit or stored in the free zone;
    • Exemption from excise duties;
  2. There are no restrictions on the type of enterprise that can be setup in a free zone;
  3. The three free zones are in Estonia’s ports, facilitating the transit of goods to other countries;
  4. Paldiski Free Trade Zone i) is in the Norther Port of Paldiski, ii) covers an area of 16 ha, and iii) is the closest port in Estonia to Europe;
  5. Muuga Free Trade Zone i) is located in the Muuga Harbor, the largest and deepest cargo port in Estonia, ii) covers an area of 75 ha and iii) is it the closest Free Zone to the capital;
  6. Sillamae Free Trade Zone i) covers an area of 750 ha, the biggest Free Zone in Estonia and ii) is the closest EU port to Russia, optimal for Clients wishing to expand into the region.

Comparison table between Estonia free zones

Estonia Free Trade Zones Paldiski Free Industrial Zone Muuga Free Zone Sillamae Free Trade Zone
FTZ used mostly by which industry? Manufacturing and Warehousing Manufacturing and Warehousing Manufacturing and Warehousing
Corporate tax standard rate 20% 20% 20%
How long to set up the company? 5 weeks 5 weeks 5 weeks
How long to open the bank account? 4 weeks 4 weeks 4 weeks
Quality of utilities Good Good Good
Allowed to sign sales contracts with Estonian clients? Yes Yes Yes
Allowed to invoice Estonian Clients? Yes Yes Yes
Corporate bank account Danske Bank Nordea Bank Swedbank
Physical office space required? Yes Yes Yes
Allowed to import raw materials? Yes Yes Yes
Allowed to export goods? Yes Yes Yes
Can be wholly foreign owned? Yes Yes Yes
Can the entity hire expatriate staff? Yes Yes Yes
Min number of directors 1 1 1
Minimum number of shareholders 1 1 1
Tax registration certificate required Yes Yes Yes
Individual shareholders allowed Yes Yes Yes
Corporate shareholders allowed Yes Yes Yes
LLC company allowed? Yes Yes Yes

Contact us

For additional information on our company registration services in Estonia, please contact our in-house country expert, Mr. Seth Ochieng, directly:
Director of Client Engagements - Seth
  • Mr. Seth Ochieng
  • Director of Client Engagements
  • Contact me!
estonia-tax estonia-government estonia ministry of economic affairs and communications estonia chamber of commerce estonia-bank