Doing Business in Estonia

Doing Business in Estonia

Working in Estonia General conditions for working in Estonia for non-EU/EEA citizens.

As an alien (non-EU/EEA citizen) you can work in Estonia:

  • Under visa-free conditions, if the employer registers short-term employment.
  • With a visa, if the employer registers short-term employment.
  • By applying for a residence permit for employment.
Visa-free conditions You do not need a visa or a residence permit if you meet the following criteria.

To work in Estonia, you will always need a visa or a residence permit unless you meet the following criteria:

  • Nationals of the European Union (EU), the European Economic Area (EEA), and any third-country national holding a residence permit of a Schengen State do not need a visa to enter Estonia.
  • Family members of EU citizens who hold a residence card issued under Directive 2004/38/EC (residence card of a family member of an EU citizen) and who are traveling with or to join the EU citizen do not need a visa.
  • If you fall under a visa-free travel treaty, which enables a visa-free stay for up to 90 days in any 180-day period, you do not need a visa.
Short-term employment If you don't have a residence permit for work, short-term employment must be registered.

General requirements for the registration of short-term employment:

  • an alien has the requisite qualifications, education, state of health, work experience and the necessary professional skills and knowledge to assume such position;
  • an employer is registered in Estonia.
  • an employer shall pay an alien remuneration in the amount of the annual average gross monthly salary in Estonia last published at the time of the application.

Short-time employment can be registered for up to 365 days during 455 day period. Short-term employment can be registered for a longer period of time for employment as a teacher or a lecturer, for research work, for employment as a top specialist or at a start-up company. Short-time employment for participation in seasonal work can be registered for up to 270 days during a year.

Additional requirements or exemptions may apply, depending on the nature of the job. 

Residence permit for employment A residence permit is needed for a longer period of employment.

If the employment relationship will last for a longer time than provided by the visa or visa freedom terms, then the employee should apply for a residence permit for employment to work in Estonia. There is no separate work permit available, an individual is permitted to work on the basis of a residence permit. A residence permit may be temporary or long-term.

The basis and conditions for applying for a residence permit depend on the employee’s special conditions and the area of business. In most cases, it is necessary to fulfil the salary criterion and get approval from the Estonian Unemployment Insurance Fund. Moreover, the residence permit is subjected to the immigration quota for aliens, which shall not exceed 0,1% of Estonian permanent population in one year.

An alien shall not be subjected to the immigration quota, if he or she is:

  • a citizen of the United States of America or Japan or United Kingdom;
  • applying for a residence permit for scientific or research purposes;
  • applying for a residence permit for work in an information and communication technology (ICT) position;
  • granted a temporary residence permit for entrepreneurship as a major investor or in connection with a startup;
  • granted a temporary residence permit for work as a top specialist, meaning the employer pays them at least 1.5 times the average salary in Estonia.

 

Start-up business A simplified opportunity to work in Estonia.

It is possible to apply for a residence permit as a founder or for employment with an Estonian start-up business. This is part of a simplified process designed to attract start-up companies to Estonia. A start-up company is defined as a business that is in the early stages of operation, aiming to develop and launch an innovative business model with high global growth potential.

The eligibility for being a start-up and using the simplified process is determined by a committee of experts. The experts will make the decision, upon submitting an application, whether your company can be considered a start-up or not.

The simplified process has the following benefits:

  • No obligation to pay the employee at least Estonian average salary/double of average salary;
  • Do not have to take into account the immigration quota;
  • No need to meet the requirement for permission from the Estonian Unemployment Insurance Fund;
  • Additional requirements for paid-in capital for holding in a company does not apply.
Major investor The golden ticket.

Temporary residence permit granted to a major investor is a residence permit for enterprise, the purpose of which is to encourage investments in such business activities in Estonia, which are in public interest and shall significantly contribute to the development of the Estonian economy.

Major investor is an alien who has made a direct investment of at least 1,000,000 euros in a company entered into the commercial register of Estonia that invests mostly into the Estonian economy, or an investment in an investment fund, according to the investment policy of which the instruments of the fund are invested mainly in the companies entered into the commercial register of Estonia.

The investment must be permanent during the period of validity of the residence permit. Investment is permanent in case the investment does not decrease during the period of validity of the residence permit, except for the causes attributable to the fluctuation of the market price of the investment.

A company or an investment fund in which the initial investment was made as a condition of issue of the residence permit, may be changed during the period of validity of the residence permit provided that the company would invest mostly into the Estonian economy or into an investment fund according to the investment policy of which the instruments of the fund are invested mainly in the companies entered into the commercial register of Estonia.

Major investor is not required to have an actual place of residence is Estonia and he or she has no obligation to register his or her place of residence in Population Register.

We will be there for you throughout the process
Eesti kaubandustööstuskoja liige Gasellfirma ALFA International - The Global Legal Network
Office
Meistri 12, 13517 Tallinn
Phone number +372 655 5559
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