Citizens of European Union member states, Iceland, Liechtenstein, Norway, and Switzerland have the right to live and work in Estonia for up to 3 months without registering for temporary residence. After this period, they must register their place of residence in Estonia.
Other foreigners can work in Estonia for a short term (up to 365 days) if they are in Estonia legally and their short-term employment is registered. The employer must have prior approval from the Estonian Unemployment Insurance Fund to hire a foreigner. In general, the salary should be at least the average annual gross monthly wage in Estonia.
For long-term residence and work in Estonia, longer than one year, one can apply for a temporary residence permit for employment. This permit is tied to a specific employer and can be granted for up to five years. If a person has lived in Estonia continuously for five years under a temporary residence permit and meets certain additional conditions, they can apply for a long-term permanent residence permit.
A residence permit can also be obtained for engaging in business activities if the person has invested a certain amount in the business's activities in Estonia (usually at least 65,000 euros). Additionally, a residence permit can be applied for conducting business as a startup. The startup must have been previously assessed by an expert commission.
Since there are many differences in various professions and employees, it is advisable to inquire with the Estonian Police and Border Guard Board regarding your specific position.
In September 2023, the Foreign Investment Reliability Assessment Act came into effect, requiring certain foreign investments to obtain government approval.
A foreign investor is considered to be:
- a person who holds the citizenship of a country outside the European Union or who is stateless;
- an entrepreneur established under the laws of such a country; or
- an entrepreneur controlled by the aforementioned individuals,
and who:
- acquires a direct or indirect significant stake in the target company;
- gains direct or indirect control over the target company;
- acquires a portion of the target company.
The target company is a certain business that is crucial to the state, such as providers of essential services, businesses with significant state ownership, producers or suppliers of military goods, nationwide television or radio service providers, specific media service providers, railway infrastructure companies, international airport or certain seaport operators, and more. The precise list is provided in section four of the Foreign Investment Reliability Assessment Act.
Authorization must be obtained before concluding the foreign investment transaction. This authorization is granted by the Foreign Investment Committee operating under the Consumer Protection and Technical Regulatory Authority. The notification can be submitted electronically, and there is no state fee. The decision should be made within 30 days (up to 120 days in special cases or during negotiations). Authorization may be granted with additional conditions.
If a foreign investment is made without permission, the Consumer Protection and Technical Regulatory Authority may issue an injunction, requiring a party to divest their ownership, undo the transaction, or take other actions to restore the pre-foreign investment situation. In case of non-compliance with the injunction, the Consumer Protection and Technical Regulatory Authority can impose a non-compliance levy of up to 100,000 euros. The levy can be imposed repeatedly until the injunction is complied with.
Estonia has a three-tiered court system. All civil and criminal proceedings start at the county court level, with the appellate level being the circuit courts located in Tallinn and Tartu, and the cassation level being the Supreme Court located in Tartu. For administrative proceedings, the first instance is typically handled by administrative courts located in Tallinn and Tartu. In specific administrative matters, it may be mandatory to go through a pre-trial procedure before turning to the courts.
There are no specialized courts. Claims for the payment of a monetary amount arising from a private law contractual obligation of up to 8,000 euros, can be resolved through a simplified procedure in the expedited order-for-payment process. Parties in labor disputes can turn to the Labor Dispute Commissions located in Tallinn, Tartu, Jõhvi, and Pärnu. In disputes related to the rent of residential premises in Tallinn, parties can also seek resolution from the Tallinn Rental Dispute Committee. Decisions made by either of them have the same legal consequences as court judgments. In Tallinn, there is also the Arbitration Court of the Estonian Chamber of Commerce and Industry, whose decisions are enforceable in all countries that have ratified the 1958 New York Convention. Estonia does not have a jury system.
Individuals can represent themselves in court or be represented by a legal representative. A representative must have the necessary legal education. An employee of a company can serve as a representative in court if they have sufficient knowledge and experience, as determined by the court. In the Supreme Court, a lawsuit can only be filed through an attorney. In criminal proceedings, anyone other than an attorney can act as a defense counsel only with the consent of the proceedings authority.
The speed of court proceedings depends on various factors, but according to 2022 statistics, in cases involving substantive disputes, the time for resolving civil matters is approximately 340 days at the county court and 197 days at the circuit court. In administrative matters, this is 288 and 257 days, respectively.
