Nearly 300 amendments of legal acts are to enter into force in Estonia on 1 January, the majority of which do not have a significant impact on the daily activities of entrepreneurs. Among the most important changes are reducing the income tax rate to 20%, decrease in the unemployment insurance premium rates, increase of the minimum wage to €390 and introduction of the new TSD tax declaration form.
However, one of the most attractive novelty implemented by Estonia is Virtual Residency. Starting from 1 December 2014 amendments to Estonian Identity Documents Act enables all people irrespective of their citizenship and physical residency to apply for Estonian e-residency and digital ID.
It is worth mentioning, that an Estonian e-resident may establish a company in Estonia, appoint its members of the management board, submit returns to the Tax Board and Commercial Register, make bank transfers, enter into contracts and perform many other everyday acts needed to run the company via the Internet with the digital ID at any location in the world.
This novelty makes Estonia a very attractive country to perform business in. Not only because of easy ways that help solving many business related questions electronically, but also giving us some kind of teaser– what more are they going to offer in order to attract investors to Estonia?
Estonia and its digital novelties bring competitive atmosphere in business market to all Baltic states. And we like it!