WHAT CAN
ESTONIA SOLVE
FOR YOU?
KRISTI TIIVAS
Estonian Investment Agency
» investinestonia.com
A few words of introduction
Area
45,227 km2 (similar to Denmark or Netherlands), about 50% forest,
At the heart of the Baltic Sea
Currency
Euro
Population
1.3 million (68% Estonians, 25% Russians)
Capital Tallinn (403,000)
Credit ratings
Member of EU, Eurozone,
NATO, Schengen, OECD
Fitch
S&P
Moody’s
A+
AAA1
Steadily growing economy
15
15
10,2
9,2
10
7,8
7,1
10
7,5
8,3
7,1
5
2,1
4,7
2,5
5
1,6
0
0
2002
2003
2004
2005
2006
2007
2009
-3,6
-5
-10
2008
2012
2013
2014*
-10
-14,1
* forecast
Source: Statistics Estonia and Ministry of Finance
2011
-5
Exports represent about
91% of Estonia’s GDP
-15
2010
-15
How did we do it?
According to OECD Economic Survey, our strong recovery from
the economic crisis has benefited from structural strengths of
the Estonian economy:
 flexible labor force,
 business friendly regulation,
 well capitalized financial institutions,
 successful transition to euro,
2013
Unemployment
Average salary
Minimum salary
8.6%
948 EUR
320 EUR
0% corporate income tax on
reinvested profits – favourable
for growing companies
 and sustained credibility of fiscal policy
Lowest government debt in EU
Estonia is one of the most successful
countries in CEE in attracting FDI
Our business environment is best
for international business
•
Establishing a company in 15 minutes
•
0% income tax on reinvested profits
• Can own company 100%
•
Flat-rate income tax at 21% (lowered
to 20% in 2015)
• Can own land, real estate
•
Remote access – e-residency to be
launched in Dec 2014
•
No restrictions to free movement of
capital
•
Minimal government intervention,
lowest government debt in Europe
Foreign investors
• Residence permits for directors
and specialists
• Same rights as local investors
Small nation must be flexible
 Estonians are in the lead in CEE in terms of educational level
 99% of high school students are learning English at school; 71% of
profesional workforce is fluent in ate least one language
 Forward-looking mindset of universities
 Tallinn Tech – active cooperation with major universities in the world
 Tartu University - one of the oldest universities of Europe (1632)
 Over 60% of the population is engaged in the services sector
 Cost base is more efficient than in most of Western Europe
 Estonians rather break their arm than a promise
High ratings in business environment
rankings
EASE OF DOING BUSINESS RANKINGS 2015
11th in Index of Economic
Freedom 2014
29
27
Wall Street Journal / The Heritage Foundation
23
6th
in Trading Across Borders
2015 World Bank
20
17
14
2nd in the Internet Freedom
11
Freedom House
7
29th in Global
Competitiveness Report 2014
World Economic Forum
1
2
8
9
3
28th in Corruption Perceptions
Index 2013
Transparency International
Source: World Bank – Doing Business 2014
24
The future is here
 Citizens/residents have unique online identity: 1.2 million active ID
cards (population: 1.3 million)
 100% of schools and government offices have broadband
connection
 70% of homes have broadband connection
 110% mobile penetration
 98% of the bank transfers are performed electronically
 95% of the income tax declarations made via the e-Tax Board
Digital ID gives us access to wide
array of public e-services






digital signature
e-elections
e-school
e-Tax Board
e-Customs
e-Health


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e-police
Mobile parking
Mobile payments
Internet banking
Citizen’s Registry
and many more…
The history of e-Estonia
2000: Launch of e-Tax Board
2000: Launch of m-Parking
2003: Launch of ID bus ticket
2005: i-Voting was introduced
2007: Launch of e-Police system
2008: Launch of e-Health system
2010: Launch of e-Prescription
2013: X-Road Europe introduced
2013: Online Border-Crossing Queue System
2014: e-residency
More start-ups per capita than
in any other country in Europe
...
So this is why Estonia:

Stability



Connecting East and West

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Ranked 4th in the world in natural sciences, 11th in math studies by PISA
#1 in Europe for startups per capita
Country of foreign investors

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Ranked among top 20 in most of pertaining indices by World Bank Group
Low bureacracy and corruption, advanced e-society
Significant cost efficiency compared with EU average – labour, taxes, property, energy
Smart people

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Accessible – geographically, logistically and socially
Communication technology makes distances in Estonia irrelevant
Ease and efficiency of doing business

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Excellent economic growth numbers since joining EU and NATO
Successful management of economic crisis, lowest government debt in EU
Foreign investors have played a decisive role in building Estonian economy
Attracting FDI not with incentives, but with favorable business environment
Great demo country to implement and test innovations!
WHAT CAN WE
SOLVE FOR YOU?
kristi.tiivas@eas.ee