Estonian economy at a glance. An overview of the Estonian economy, taxation, Estonia's advantages, key business sectors.

1. ESTONIA
AT A GLANCE
Märt Helmja
FDI Area Manager

2. AT THE HEART OF THE BALTIC SEA
Area
45,339 km2
Population
1.3 million
Member of
EU, Eurozone,
OECD,
NATO and
Schengen
Credit ratings:
Fitch A+
S&P AA-
Moody’s A1

3. ESTONIAN INVESTMENT AGENCY
Information services &
investment preparation
Investment proposals & tours
Consulting & project management
Facilitating contacts,
negotiation with authorities
Identifying suitable properties &
consulting recruitment
Aftercare services
WE PROVIDE
EIA IS A DIVISION WITHIN ENTERPRISE ESTONIA
Tallinn Estonia
Hamburg Germany
Helsinki Finland
Stockholm Sweden
Silicon Valley USA
Tokyo Japan
Shanghai China
Saint-Petersburg Russia
London UK
Copenhagen Denmark
Paris France
Netherlands
New Delhi India

4. HIGH POSITION IN
BUSINESS ENVIROMENT RANKINGS
1st
in International
Tax
Competitiveness
Index
2015
Tax Foundation
2nd
in Index of
Economic
Freedom in EU
(9 th in
the World)
Wall Street Journal /
The Heritage
Foundation 2016
30th in
Global
Competitiveness
Report
2016
World Economic
Forum
22nd in
Corruption
Perceptions
Index 2016
Transparency
International
2nd
in the Internet
Freedom
Freedom
House 2015
4th
in Registering
Property
2015
World Bank Group

5. EASE OF DOING BUSINESS RANKING 2015
16
60
22
23
24
34
15
Lithuania
Estonia
Germany
Sweden
New Zealand
Latvia
Portugal
Japan
Greece
11
9
Singapore
Source: World Bank – Doing Business 2015
Hungary
Belgium
42
43

6. LOW RISK –
POLITICALLY AND ECONOMICALLY STABILE
A BALANCED
AND FUTURE
ORIENTED
STATE BUDGET
POLITICAL
STABILITY
LOWEST
GOVERNMENT
DEBT IN EUROPE

7. RISK OF POLITICAL INSTABILITY, GLOBAL RANK
6,21
5,24
6,5
Finland
Sweden
UK
Belgium
Estonia
Latvia
Spain
Croatia
Italy
Russia
7,36
7,49
8,24
5,04
4,85
4,83
4,46
Source: IMD World Competitiveness Yearbook 2015
The higher the rank, the lower the risk

8. 8.24
7.49 7.36
6.5 6.21
5.24 5.04 4.83 4.83
4.46
RISK OF POLITICAL INSTABILITY, GLOBAL RANK
The higher the rank, the lower the risk
Finland Sweden UK Belgium Estonia Latvia Spain Croatia Italy Russia

9. 8.24
7.49 7.36
6.5 6.21
5.24 5.04 4.83 4.83
4.46
RISK OF POLITICAL INSTABILITY, GLOBAL RANK
The higher the rank, the lower the risk
Finland Sweden UK Belgium Estonia Latvia Spain Croatia Italy Russia

10. 16% MANUFACTURING
ESTONIAN GDP BY ECONOMIC
ACTIVITY 2015
Source: Statistics Estonia (04.07.2016)
6% CONSTRUCTION
12% WHOLESALE AND RETAIL
TRADE
10% REAL ESTATE ACTIVITIES
8% TRANSPORTATION AND
STORAGE
4% FINANCIAL AND INSURANCE
ACTIVITIES
4% AGRICULTURE, FORESTRY
AND FISHING
4% HEALTH AND SOCIAL WORK
4% ADMINISTRATIVE AND
SUPPORT SERVICE ACTIVITIES
5% EDUCATION
6% INFORMATION AND
COMMUNICATION
6% PROFESSIONAL, SCIENTIFIC
AND TECHNICAL ACTIVITIES
7% PUBLIC ADMINISTRATION
AND DEFENCE
8% OTHER SECTORS

11. GDP GROWTH 2012-2017
GDP growth %
* forecast
Source: Bank of Estonia (16.01.2017)
2015
1,4
2016* 2017*
5,0
1,7
2,8
1,0
2,6
201420132012

12. MAIN ECONOMIC INDICATORS 2013-2015
Source: Statistics Estonia (16.01.2017);
Bank of Estonia (16.01.2017)
2013 2014 2015
GDP real growth (%)
GDP (current prices, billion EUR)
Change of consumer price index (%)
Labor force (thousands)
Growth of labour productivity per worker
Unemployment rate (ILO)
Average wage (EUR)
Wage real growth (%)
1.7
19.00
2.8
621.3
0.3
8.6
949
4.9
2.8
19.96
-0.1
624.8
1.9
7.4
1,005
6.3
1.2
20.46
-0.5
640.9
-1.2
6.2
1,065
6.0
2016
-
-
0,1
653,3
-
7.5
1,119 (Q3)
-

13. FDI INFLOW BY COUNTRY AND
ACTIVITY STOCK AS OF 31.12.15
SWEDEN
Source: Bank of Estonia (14.03.2016)
FINLAND
NETHERLANDS
RUSSIAN FEDERATION
NORWAY
FINANCIAL AND INSURANCE
ACTIVITIES
REAL ESTATE ACTIVITIES
WHOLESALE AND RETAIL TRADE;
REPAIR OF MOTOR VEHICLES
AND MOTORCYCLES
MANUFACTURING
PROFESSIONAL, SCIENTIFIC
AND TECHNICAL ACTIVITIES
26%
19%
14%
13%
7%
25%
23%
10%
5%
DENMARK0,8%
4%

14. TOTAL EXPORTS ACROSS
ALL COMMODITIES (EUR)
8,743,007,248 €
2010
Source: Statistics Estonia (04.07.2016)
12,003,360,298 €
2011 2012 2013 2014
12,521,145,705 €
12,297,264,120 €
12,083,423,528 €
2015
11,626,723,528 €

15. COMMODITIES EXPORTS BY
COUNTRY AND COMMODITY 2015
Source: Statistics Estonia (04.07.2016)
19%
15%
11%
7%
4%
SWEDEN
FINLAND
LATVIA
LITHUANIA
RUSSIAN FEDERATION
34%
17%
15%
9%
MACHINERY AND TRANSPORT
EQUIPMENT
MISCELLANEOUS
MANUFACTURED ARTICLES
MANUFACTURED GOODS
CLASSIFIED CHIEFLY BY
MATERIAL
MINERAL FUELS, LUBRICANTS
AND RELATED MATERIALS

16. SERVICES EXPORTS AND IMPORTS
BY COUNTRY 2015
Source: Bank of Estonia (04.07.2016)
RUSSIAN
FEDERATION
8%
SWEDEN
8%
LATVIA
5%
SWEDEN
6%
IMPORTS
FINLAND
28%
FINLAND
10%
EXPORTS

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

18. TAX RATE ON CORPORATE INCOME
0%
ESTONIA
LITHUANIA
LATVIA
FINLAND
GERMANY
Source: KPMG
2015
0% 10% 20% 30% 40%
15%
24,5%
29,6%

19. INFORMATION SOCIETY
INDICATORS
100% OF SCHOOLS AND GOVERNMENT ORGANIZATIONS ARE ICT EQUIPPED
ENTIRE COUNTRY IS COVERED WITH A BROADBAND CONNECTION
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
30% OF VOTES WERE CAST OVER THE INTERNET ON 2015
MORE THAN 94% OF THE POPULATION HAS AN ID-CARD

20. LABOUR MARKET
Total
labour force:
650 000 –
700 000
The average
wage in
Estonia in
2016 Q3 was
1 119 EUR
Unemployment
rate:
7,5% in
2016 Q3
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 (16.01.2017)

21. EDUCATION SYSTEM
Source: haridussilm.ee, 16.01.2017
168
gymnasiums
(high schools)
36,674
students
7 universities
(6 public,
1 private)
37,755 students
in 16/17
17 other
professional
higher education
institutions
10,039
students
38
vocational
schools
25 071
students

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

23. Top-ranking destination countries by average job value
of investment projects – 2015 (2014)
5,61
5,63
Ireland
Singapore
Switzerland
Sweden
Denmark
Netherlands
Hong Kong
Estonia
Austria
Lithuania
5,68
5,77
6,49
5,40
5,23
5,18
5,14
Source: IBM-PLI Global Location Trends database and analysis. 2016.
5,23

24. Source: Estonian Investment Agency, 2016
8
10
12
22
24
32
63
Switzerland
USA
Norway
Russia
Sweden
Germany
Finland
MAIN ORIGING COUNTRIES OF INVESTMENT PROJECTS
HANDLED BY THE ESTONIAN INVESTMENT AGENCY

25. TOTAL
CAPITAL
COSTS
3,5 bill. €
RAIL BALTIC
Estonia
Latvia
New 1435 mm
double trackrailway
line
Top speed up
to 240 km/h
To be finished
by 2024
Lithuania
Latvian border –
Kaunas
Kaunas – Vilnius
Kaunas – Polish
border
A 1435 mm railway
alongside old
1520 mm railway
Top speed
120 km/h to 80 km/h
To be finished
by 2024

26. THANK YOU!