This document provides information about doing business in Estonia. It summarizes Enterprise Estonia, the government foundation that implements EU structural funds and promotes investment, trade, tourism, and innovation in Estonia. It also outlines Estonia's business environment rankings, main economic indicators, GDP by sector, foreign direct investment, exports/imports by country, taxation system, labor market, education system, digital government services, and some key sectors for investment and business.

1. Doing Business in
ESTONIA
Andrus Viirg
Enterprise Estonia Silicon Valley
» investinestonia.com
andrus.viirg@eas.ee

2. ENTERPRISE ESTONIA
Tallinn Estonia
Helsinki Finland
Stockholm Sweden
Copenhagen Denmark
Oslo Norway
Silicon Valley USA
Tokyo Japan
Astana Kazakhstan
Beijing China
New Delhi India
Singapore Singapore
London UK
Paris France
Amsterdam Netherlands
Hamburg, Nürnberg
Germany
Government Foundation Implementing European Structural Funds
- grants for companies, R&D and non-profit institutions
- budget 588 mln EUR for 2014-2020
- 280+ employees
www.workinestonia.com www.e-estonia.com
www.visitestonia.com www.e-resident.gov.ee
www.tradewithestonia.com www.investinestonia.com
Investment, Trade, Tourism & Innovation Promotion
assisting foreign companies to estonianize
assisting Estonian companies to internationalize
Invest in Estonia services:
- information services and investment preparation
- investment proposals and tours
- facilitating contacts, negotiation with authorities
- organising recruitment
- identifying suitable real estate and facilities
- post-investment / aftercare services
Network of rep offices and consultants

3. ESTONIA
an Emerging (New) Nordic country with a
strong and stable economy
Area
45,339 km2
(17,507 sq mile)
Population
1.3 million
Member of
EU, Eurozone,
OECD, NATO,
Schengen
Credit ratings:
Fitch A+
S&P AA-
Moody’s A1

4. ease of doing business
Simplest and fastest business environment.
©EAS
+ a few hours to start a company
+ hassle-free e-taxation
+ full automatization in tax reporting by 2020
+ e-Residency – Estonian e-services to every world citizen

5. HIGH POSITION IN BUSINESS
ENVIROMENT RANKINGS
1st
in International
Tax
Competitiveness
Index
3rd
in Index of
Economic
Freedom in EU
(9 th in
the World)
29th in
Global
Competitiveness
Report
23rd in
Corruption
Perceptions
Index 2015
2nd
in Internet
Freedom
6th
in Trading
Across
Borders
2015 Wall Street Journal / Freedom 2015 2017 Transparency
Tax Foundation The Heritage
Foundation 2016
House 2015 World Bank World Economic Forum International
ESTONIA

6. MAIN ECONOMIC INDICATORS 2013-2017
Source: Statistics Estonia (01.03.2018);
Bank of Estonia (20.03.2018)
2013 2014 2015
GDP real growth (%)
GDP (current prices, billion EUR)
Change of consumer price index (%)
Labor force (thousands)
Unemployment rate (ILO)
Average wage (EUR)
Wage real growth (%)
1.7
18.92
2.8
621.3
8.6
949
4.9
2.8
19.76
-0.1
624.8
7.4
1,005
6.3
1.8
20.34
-0.5
640.9
6.2
1,065
6.0
2.2
21.09
0.1
653.5
6.8
1,146
7.0
2016
4.8
23.00
3.4
699.0
5.8
1,221
6.5
2017

7. 68.8% SERVICES
ESTONIAN GDP BY ECONOMIC
ACTIVITY 2017
Source: Statistics Estonia (01.03.2018)
27.8% INDUSTRY
3.4% AGRICULTURE
farming; fishing; livestock and dairy products
food, engineering, electronics,
wood and wood products, textiles;
information technology, telecommunications

8. FDI INFLOW BY COUNTRY AND
ACTIVITY (total stock 18.7 billion EUR as of 31.12.16)
SWEDEN
Source: Bank of Estonia (01.03.2018)
FINLAND
NETHERLANDS
RUSSIA
LUXEMBOURG
FINANCIAL AND INSURANCE
ACTIVITIES
REAL ESTATE ACTIVITIES
WHOLESALE AND RETAIL TRADE;
REPAIR OF MOTOR VEHICLES
AND MOTORCYCLES
MANUFACTURING
PROFESSIONAL, SCIENTIFIC
AND TECHNICAL ACTIVITIES
28%
18%
14%
13%
8%
26%
23%
10%
4%
USA2,3%
3,5%

9. EXPORTS AND IMPORTS
BY COUNTRY 2017
Source: Bank of Estonia (01.03.2018)
LATVIA
9%
SWEDEN
14%
GERMANY
11%
SWEDEN
9%
IMPORTS (12,7 billion EUR)
FINLAND
15%
FINLAND
12%
EXPORTS (11,8 billion EUR)

10. SIMPLE AND FAVOURABLE TAX SYSTEM
EASY ADMINISTRATION
ALL THE TAXES CAN BE DECLARED VIA E-TAX/E-CUSTOMS
0% Personal VAT: Social tax: Unemployment No The land
Corporate income tax: 20% 33% insurance: property tax:
income tax
on reinvested
profits
flat rate
20%
2,6%
of the
gross salary
tax from 0,1%
to 2,5%
ESTONIA

11. LABOUR MARKET
Total
labour force:
653,500
The average
wage in
Estonia in
2017 was
1 221 EUR
Unemployment
rate:
5,8% in
2017
General
working time:
8 hours
a day,
5 days
per week
The duration
of the annual
vacation:
28 days
10 Public
holidays
a year
Source: Statistics Estonia (01.03.2018)

12. EDUCATION SYSTEM
171
gymnasiums
(high schools)
ca 25,879
students
7 universities
(6 public,
1 private)
40,520 students
in 15/16
17 other
professional
higher education
institutions
ca 10,500
students
47
vocational
schools
ca 24,900
students
- 55% of the Estonia workforce is fluent in one or more foreign languages
(English, Russian, Finnish, German and Swedish are most common)
- Ranked 5th in the world for high school education standards(PISA)

13. e-ESTONIA
THE DIGITAL SOCIETY
e-GOVERNANCE since 2000
MORE THAN 3300 DIGITAL SERVICES (public & private)
80% OF HOMES HAVE BROADBAND CONNECTION
99,8% OF BANK TRANSFERS ARE PERFORMED ELECTRONICALLY
95% OF INCOME TAX DECLARATIONS ARE MADE VIA THE E-TAX BOARD
35% OF VOTES WERE CAST OVER THE INTERNET ON 2017
MORE THAN 93% OF THE POPULATION HAS A DIGITAL ID-CARD
e-RESIDENCY: a transnational digital identity available to anyone
in the world interested in administering a location-independent
business online. Enables secure and convenient digital services that
facilitate credibility and trust online.

14. Electronic ID card
The key technology in Estonian e-Services
• Estonia is a global pioneer in adopting electronic government.
• Estonian electronic ID card:
o obligatory certification document
o the identity verification certificate
o the digital signature certificate
o is integrated with the unified national identification system, which eliminates the need
for new certification platforms
o meets the US Department of Defence security requirements
• Growth in the use of new mobile ID which is based on the same infrastructure

15. KEY SECTORS
ICT TRANSPORT
and
LOGISTICS
SERVICES
SHARED
SERVICES
INDUSTRIAL
MACHINERY
and
METALWORKING
ELECTRONICS

16. Thinnect
Sensoid
Software platforms for IOT
3DPrinterOS

17. Thinnect
Patented, wireless mesh networking (Mist Computing)
IoT Local Network Service Provider
Thinnect is applying the world's best wireless mesh networking technology
to intelligent commercial lighting
• 6x more reliable than a recently tested Zigbee Pro equivalent network.
• we're bundling this with cloud-based NaaS so commercial LED lighting companies can sell the
power saving benefits of intelligent lighting without the headaches of wireless network
management
• our networks don't require planning and are easily installed by electricians.
We're making reliable intelligent commercial lighting networks simple, low
cost and effortless to own.
www.thinnect.com

18. sensoid.net Smarter Buildings
Sensoid adds AI/Machine Learning capability to Smart Home
and other IoT systems
We make smart homes smarter, by providing a learning capability to automatically
reach objectives like energy saving, security and increased convenience.
Provided as a cloud service, Sensoid integrates to services by utilities, telecoms,
electronics and cloud providers.
Our energy management services take advantage of fluctuating energy market prices
(where available), monitor actual usage patterns and incorporate expert knowledge on
different types of devices.
www.sensoid.net

19. Education facilities:
Manage unlimited 3D printers, students and files from a single platform.
Enterprises:
Radically reduce the time from prototype to market
3DPrinterOSis built on a pure cloud/web/mobile architecture so it
infinitely scalable and can be deployed privately for maximum security.
www.3dprinteros.com/
With the 3DPrinterOS API you have access to:
-STL Editor and Visualization Tools
-Magic Fix for design repair and preparing
-Direct streaming to supported printer types

20. BIKEEP
Click & Grow
Hardware with IOT
Starship

21. A Smart Garden for a modern life
A self-watering garden that grows plants automatically. Grow any plant with zero effort.
If we compare Click & Grow to a product, activity or
phenomenon, the first thing we envision is a bonsai: you embark on a
journey with this plant and get the sense of responsibility and balance as you
watch it grow. Zen. What matters with the bonsai is not how you shape and
alter the plant, but how it changes and alters you. It causes you to weigh
decisions, seek solutions, and learn about things and about yourself.
www.clickandgrow.com

22. BIKEEP - a secure electronic bike-rack for locking personal
bikes, charging E-bikes and P2P bike-sharing.
• No need for a personal lock
• Lock both frame & wheel
• Distress signal transmission
• E-bike charging
• Utilization reports
www.bikeep.com

23. With a combination of mobile technology, specially designed robots and a local hub
system, we aim to make local delivery faster, smarter and more cost-efficient.
The Self-Driving Delivery Robot
Starship’s robots move at pedestrian speed and weigh
no more than 50 pounds, unloaded. They’re inherently
safe and can navigate around objects and people.
Consequently, they cause no inconvenience.
For security, the cargo bay is locked throughout the
journey and can be opened only by the recipient.
www.starship.xyz

24. GOLIATH Wind
Skeleton Technologies
Stigo
Cleantech

25. GOLIATH Wind
a patented generator solution that
ables to build large wind turbines
with ring generators.
The Capella 3 at a glance:
• 3.33 Megawatt, 109 m rotor diameter, wind class IIA
• lattice tower with 80, 100 and 120 m hub heights
• gearless drive train
• passive air cooling
• redundant power conversion system
• manually replaceable generator windings & magnets
• Cyclos™ generator shippable in standard sea containers
www.goliath.ee

26. Stigois the world’s fastest-folding electric scooter developed in
response to the need expressed by many urban commuters for an
electric bicycle or scooter. It folds into a wheeled suitcase-type package
you can bring along anywhere and charge from a regular outlet.
• Speeds up to 25 km/h
• Weighs 13.9 kg
• Folds up in 2 sec with footprint a mere 48×40
cm (19x16 inch)
• 250W hub motor
• 36V Lithium-Ion battery
• Drives up to 30 km with a single charge
• L1e street legal electric scooter
• Doesn’t need parking space
• Can be charged from a regular outlet
www.stigobike.com

27. Skeleton Technologies is the global market leader for high-end
ultracapacitors for transportation, industrial equipment, renewable and space and
defense applications for regenerative, peak and back-up power. Companies customer
base includes European Space Agency, Lockheed Martin and leading motorsports teams.
The company is the first one to successfully commercialize patented graphene
ultracapacitors which offer two times higher energy density and over five times higher
power density than the competitors.
Our ultracapacitors deliver twice the energy density and 4 times the power density
offered by other manufacturers. Our current customer base includes global engineering
companies, the European Space Agency and several Tier 1 automotive manufacturers.
Global Leader In Ultracapacitor-Based Energy Storage
www.skeletontech.com

28. Fintech & Cybersecurity
TransferWise
Funderbeam RANGEFORCE
GUARDTIMECYBERNETICA
CodeborneReal Systems
VERIFF

29. CYBERNETICAwas established in 1997 on the basis of the Institute of
Cybernetics of Estonian Academy of Sciences
Fields of activity
• e-Government systems (Customs, X-Road, eID, Internet voting)
• Maritime safety and security
• Cryptographic research
https://cyber.ee/en/
Cybernetica is known as a key player in several world-renowned e-Government projects, such as
developing the Estonian X-Road platform or the Internet voting software, but also in radio
communication solutions for Maritime Authorities. As part of its heritage, Cybernetica still focuses
on R&D in information security – it’s institute of Information Security works collaboration with top
universities from Europe, but also with institutions from the USA and Japan.

30. Founded in 1993, Real Systemsis a professional
information system and application software development
company based in Estonia. Real Systems has created
software and implemented numerous public and private
modern information systems enabling further development
of information society.
Real Systems is the partner of several leading software
companies: Oracle, IBM, Guidance Software, AccessData.
Services offered:
• information system development
• system analysis
• forensic products sales
• visualisation and analysis product sales
• consulting and training
http://realsystems.eu/
VizKey™ is the software environment for analysts and
investigators to collect, represent, explore and provide
information in an understandable form. VizKey™ depicts large
amounts of information in a graphic form and represents data by
objects and their relationships. Together with the functionality
of data analyses this helps to understand what happens, find
and identify key figures and events, make conclusions and plan
further steps of investigation.

31. https://markets.funderbeam.com/
Funderbeam is the first and only platform in the world where
growth companies are funded and traded across borders.
POWERFUL RESEARCH TOOLS
It's easy to research investment opportunities with our database of +180k startups and investors.
GREAT INVESTMENT OPPORTUNITIES
Access one of Europe's top crowdfunding platforms, with great companies looking for growth capital.
TRADING INVESTMENTS ON DEMAND
Buy and sell your investments you want, on the world's only on-demand trading platform
for growth companies.

32. TransferWise is an online money transfer service allowing private individuals &
businesses to send money abroad without hidden charges.
With TransferWiseyou save up to 90%. Problem solved, money saved.
We use only real exchange rates and tiny not-hidden-fees.
TransferWise is backed by a fantastic team of smart investors who believe that there’s
a dire need for innovation in financial services. In addition to the great institutional
investors (AndreessenHorowitz, IA Ventures, Virgin, Index Ventures, Valar Ventures,
KIMA Ventures, Seedcamp), we’re supported by private individuals who founded or
are building Virgin, PayPal, Skype, Betfair, Simple.com and others.
https://transferwise.com
From the people who
built

33. GUARDTIME
• R&D company developing new
technologies for cybersecurity
applications
• Founded in 2007 in Estonia
• 120 Full-time employees
• Offices in Estonia, US and The
Netherlands
• 30+ Patent Portfolio
• USD 23M of sales in 2015, over 100%
YoY increase starting from 2012
• Employee owned, customer financed
PROPRIETARY TECHNOLOGIES KEYVERTICALS
• Aerospace and Defense
• Telecommunications
• eGovernance
KEYSOLUTIONS
KEYCUSTOMERS
• Lockheed Martin
• Raytheon
• Ericsson
Critical Infrastructure
Protection
Problems solved:
• Malicious software / configurations
being run in infrastructure devices
• Device data being maliciously modified by
external actors or insiders
• Cyber attacks and risks associated
with data tampering
• Intentional log data changes by the
device operators or external attackers
• Inability to trust the data collected
from the devices
Anti-tamper Networking,
Compute and Storage
Problems solved:
• Advanced Persistent Threats (APT-s)
• Privileged Unlawful Access (Insider
Threat)
• Distributed Denial of Service (DDOS)
• Side Channel Attacks
• Introduction of Malicious Code
• Boot Code and OS Modification
• Physical Access to Hardware
• Low-Level Reverse Engineering
• Cryptanalysis Attacks
• Zero-day Exploits
Software Supply Chain
Assurance
Problems solved:
• How to trace when and who
makes changes throughout the
supply chain
• Eliminate expensive and
unnecessary regression testing
• How to counter the threat of
surreptitious manipulation of the
audit trail
The root cause for ineffective
cybersecurity is the lack of integrity of
systems, networks, processes and data.
Guardtime’s KSI blockchain is the only
technology available today that can be
used to solve the integrity problem in an
enterprise-scale.
guardtime.
com
Black LanternTM
Anti-tamper Platform
• Hardware with built-in active
defenses against network based
and physical manipulation
• PPC based real-time operating
environment with JVM runtime
• Secondary x86 based operating
environment, monitored by real-
time integrity hooks over the PCIe
• Hardware encryption SoC
• Real-time, high-precision
networking
• Commercially available 2016-Q2
Keyless Signature
Infrastructure® (KSITM)
• High-scale, high-frequency blockchain
technology for real-time integrity
instrumentation of systems, networks,
processes and data
• KSI blockchain allows to register and
verify 1012 data items every second
• Data registers in a KSI blockchain and
becomes verifiable in 1 second, globally
• KSI blockchain is quantum-immune
• Data privacy is 100% guaranteed
• In production use since April 2008

34. RANGEFORCE helps IT administrators and developers to learn cyber defense by
training with threats in a cloud based Cyber Simulator.
Engaging missions - Scenario-based challenges add a real world dimension to labs
Real network - Develop your knowledge by experimenting in safe, isolated network
Automated attacks - Test your knowledge under actual cyber attacks
Feedback - Automated system checks provide you instant feedback
www.rangeforce.com

35. https://codeborne.com/
Open-source
We are the creators of open-source libraries Selenide and MobileID Java interface.
We have also written several modules for Play Framework.
Codeborneis the only true extreme programming company in the Nordic&Baltic region.
How can we help you?
Increase your business
We will understand your business goals and define the software functionality together.
Launch the project quickly
You can go live with real customers within a month!
Train to work the agile way
Agile is not black magic. We can train you to work like we do.

36. www.veriff.me

37. Business
opportunities in
ESTONIA
What can ESTONIA Offer

38. What can ESTONIA OfferStrategic Location
- at a crossroads between Europe and Russia
- Port of Tallinn, the biggest EU port of the Baltic Sea
(20,1 mln tons cargo; 10,17 mln passengers in 2016)
Extensive Connectivity
- excellent fiber connections to global data networks
(low network latency: Helsinki 1.1ms; Amsterdam 31.1ms;
Frankfurt 29,1; Moscow 14,9ms)
Power
– self sufficient in electricity with added connections to NordPool
and Russia (net electricity generation capacity 2713MW)
Competitive Environment
- 0% corporate income tax on re-invested profits
Highly Qualified Labor
- language, engineering, finance, IT skills
Safe Geological Location
- no volcanos, earthquakes, tornaados,
- cool climate
a perfect location for
- testing & developing new e-services
- tech manufacturing
- service centers (incl. data centers)

39. ESTONIAis well connected to global network
and has one of the best ICT infrastructure’s in CEE
 Multiple international fiber routes to
North, East and West of Estonia.
 Fiber optical backbone network
connects all Estonian county
centers.
 By 2018 all Estonian households,
enterprises and institutions will
have access to the broadband
network with the data connection
speed of up to 100 Mbit/s
Main international fiber network
Source: Elion

40.  Muuga Industrial Park, 75 ha - in Port of Tallinn (Muuga Harbour), the largest and
deepest cargo port in Estonia. http://www.portoftallinn.com/muuga-industrial-park
 Paldiski Industrial Park - 50 km west of Tallinn, it is the third largest harbour of the
five harbours belonging to Port of Tallinn. A 21 ha industrial park area bordering on the
harbour is developed. http://www.portoftallinn.com/paldiski-industrial-park
 PAKRI Science & Industrial Park – 50 km west of Tallinn, ca 60ha of land, that
gives the potential for ca 450000m2 of commercial, office and mix-used development, plus
own energy grid. http://pakri.ee/
 SILPORT hinterland territory of 600 ha has the Free Zone status and is available for
developing different terminals, distribution and manufacturing facilities. http://www.silport.ee/
 East-Virumaa Industrial Areas (SAIVTA) is developing 6 industrial parks in Ida-Viru
County in Eastern Estonia, a key development area (close to the Russian border)
http://www.ivia.ee/index_eng.php?nid=71&pid=2
Progressive Infrastructure – Industrial Parks

41. Stable Power Supply
Guaranteed supply of electrical energy with high redundancy 365 days a year
Close to 2000 MW of installed capacity available
Prime Location
A total of 57.6 hectares /142.3 acres of ready-to-build land situated at the core of Estonia´s power grid
Possibility to utilize data center waste heat at nearby district heating network
Favourably Priced Electricity
Best available electricity pricing with direct line to power station (no transmissioon fees)
Cost Efficient Cooling
River-based cooling water and free cooling solutions available
Moderate northern climate with an annual average temperature of 5°C / 41°F
Secure Location
Tier 2 and Tier 3 availability levels
Very low risk of natural disasters
Development sites next to
Enefit power plants
 Enefit is an international energy company
offering energy solutions ranging from electricity,
heat and fuel production to sales, customer service,
and consulting.
 sole shareholder is the Republic of Estonia;
 Eurobonds issued by Enefit are listed on
the London Stock Exchange.
 Enefit operates in the Baltic and Nordic electricity
and gas markets and the global liquid fuels market.
 is developing new oil shale projects in
Jordan and the US state of Utah;
 is operating a shale oil pilot plant in
Frankfurt, Germany

42. Every main road in Estonia has a DC fast charger (CHAdeMO
standard) at approximately every 50-60 km (200 chargers)
www.elmo.ee/charging-network-2
Technology supplied and built by ABB (Switzerland)
The payment and billing platform provided by
NOW!Innovations (Estonia)
In March 2011, Estonia concluded a contract with Mitsubishi Corporation on the
sale of emission allowances in the amount of 10 million AAU to launch the
Electric Mobility Program for Estonia:
First country to operate a nationwide
EV fast chargers Network

43. TOTAL
CAPITAL
COSTS
4.8 billion €
RAIL BALTIC
Estonia
Latvia
Lithuania
New 1435 mm double
trackrailway line
Top speed up to 240 km/h
To be finished by 2025?
Berlin ?
What if?

44. Helsinki-Tallinn Tunnel
+ Length: 92 km (the longest of its kind in
the world)
+ Diameter: 14 m
+ 215 m below sea level at its deepest
+ Travel time: 30min (currently 2 hours)
+ Possible use of Hyperloop in the future
+ Estimated beginning of construction: 2025
Major benefits: deeper twin-city integration
and regional development
A proposed undersea train tunnel
connecting Finnish and Estonian capitals.
16 bill. €
ESTIMATED TOTAL
CAPITAL COSTS

45. US companies in Estonia
(production and/or product development/engineering)
www.investinestonia.com

46. • www. bikeep.com
• www.budgetmatador.com
• www.clickandgrow.com
• www.cognuse.com
• www.deltabid.com
• www.digitalsputnik.com
• www.egeeninc.com
• www.fortumo.com
• www.fotki.com
• www.guardtime.com
• www.icosagen.com
• www.import2.com
• www.mangobio.com
• www.myhistro.com
• www.nortal.com
• www.powerupenergytech.com
• www.resultsonair.com
Companies with `Estonian` roots in USA
• www.scoro.com
• www.spmtips.com
• www.starship.xyz
• www.sprayprinter.com
• www.thinnect.com
• www.testlio.com
• www.upgraded.io
• www.upgraders.com
• www.veriff.me
• www.zerply.com
• www.bindagency.com
• www.cleveron.eu
• www.easybitz.com
• www.enefit.com
• www.erply.com
• www.merocrat.com
• www.ovela.us
• www.pipedrive.com
• www.transferwise.com
• www.zeroturnaround.com
• Laul Estonia Piano Factory
Acquisitions:
FusionOne - Synchronoss in 2010, Silicon Valley
Modesat - Xilinx in 2012, Silicon Valley
GrabCAD - Stratasys in 2014, Boston
Vitalfields – The Climate Corporation / Monsanto in 2016, Silicon Valley
NowInnovations (Mobile-Now) – InfraPark (FRA) 2015
Teleport – MOVE Guides in 2017 (US/UK)
PlanetOS – Intertrust in 2017, Silicon Valley
Zeroturnaround – RogueWave, 2017, Boston
• www.ventondemand.com
• www.wellbiome.com
• www.wolf3d.io
• www.3DPrinterOS
• Qualitex USA Inc.
/KRISTISTAR
East CoastSilicon Valley / California

48. Andrus Viirg
Enterprise Estonia Silicon Valley
andrus.viirg@eas.ee
www.investinestonia.com
www.estonia.eu
www.workinestonia.com
www.visitestonia.com/en
www.studyinestonia.ee
www.tradewithestonia.com
www.researchinestonia.eu
www.e-estonia.com
www.investinestonia.com