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Estonia has one of the higher per capita income levels in Central Europe and the Baltic region. It has strong electronics and telecommunications, as well as trade sectors. However, due to its strong trade ties with Finland, Sweden, Germany, and Russia, its economy is heavily influenced by the economic developments of these countries, making it vulnerable to external shocks. The country’s developmental effort is currently focused on innovations that emphasise technology start-ups and e-commerce.

How to build a team in Estonia

Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Estonia. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.

Global payroll solutions make it easy to find and hire top talent in Estonia. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.

Compliance risk

Risk of misclassification

Estonia’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.

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