Estonia free zones in 2023
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
- 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;
- There are no restrictions on the type of enterprise that can be setup in a free zone;
- The three free zones are in Estonia’s ports, facilitating the transit of goods to other countries;
- 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;
- 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;
- 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 |
