Estonian entrepreneurial environment for Finnish entrepreneurs in 2021

Abstract

In recent years, Estonia has established a reputation as a digital state and business-friendly environment. Estonia has given credit for its driven and dynamic market with advanced network infrastructures and exceptional information and communications technology. Estonian innovative project e-Residency, launched in 2014, has achieved a considerable recognition globally. The e-Residency gives foreigners an opportunity to launch and establish a business, manage all banking matters, declare their taxes, and digi-tally sign documents. Another key feature of Estonian business appeal lies in the Estonian unique corpo-rate income tax system. In Estonia, companies pay income tax only when the profit is distributed, and from the profit they distributed. This combined with the relative closeness to Finland has awakened in-terest in Finnish entrepreneurs, and the overall estimation is that there are about 6000 such companies in Estonia that base entirely or partially on Finnish capital. This research aimed at finding out how those Finnish entrepreneurs who operate in Estonia perceive the Estonian entrepreneurial environment today, and whether they still find advantages there compared to Finland.