Estonia Overview
Written by Anastasiia Lushyna Moderated by Oleksandra Dosii
Anastasiia Lushyna

Anastasiia Lushyna

Anastasiia is a content creator, writer, and motorcycle traveler with experience living in 4 different countries. She has been exploring the world and its cultural diversity since 2010.

Oleksandra Dosii

Oleksandra Dosii

Oleksandra is a dedicated marketer with a passion for growing HR-tech products. She believes content marketing is about delivering high-quality content that provides value—not just generating leads. Since 2016, Oleksandra has been involved in tech talent relocation.

Last update: November 23, 2024

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Next update: Scheduled for February 1, 2025

Known for its advanced digital infrastructure and widespread e-services that make daily life and bureaucratic processes efficient and convenient, Estonia is often called the "Digital Republic". Additionally, the country has a high quality of life with clean air, green spaces, and a low cost of living compared to other European countries. For instance, on the list of 145 European cities, Tallinn, the capital of Estonia, currently occupies the 71st position. Estonia is also welcoming to expatriates, with a growing international community and a strong emphasis on innovation and entrepreneurship. Estonia is also considered one of the safest places in Europe (the crime rate is provided below), making it an excellent choice for families and professionals.

Interesting facts

  • 99% of state services in Estonia are available online.
  • The Estonian language is one of the hardest for native English speakers to learn.
  • Estonia is home to over 200 ethnic nationalities.
Visas & Immigration in Estonia

Estonia offers various visa and immigration options, with EU/EEA citizens able to live and work freely without a visa. Non-EU citizens typically need a visa for short stays and a residence permit for long-term purposes such as work, study, or family reunification. Estonia is also known for its welcoming stance toward digital nomads and entrepreneurs, offering a special Digital Nomad Visa. Applications are usually made through Estonian embassies or consulates, and all residents must register with local authorities for long-term stays.

Types of visas

  • Schengen (Short Stay) Visa (Type C)
  • Long-Stay Visa (Type D)
  • Airport Transit Visa (Type A)
  • Youth Mobility Visa

Explore Visa Options

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Taxes in Estonia

Estonia has a relatively simple and flat tax system compared to other European countries. The personal income tax rate is flat, meaning everyone pays the same percentage, regardless of their income level. Estonia also imposes a value-added tax (VAT) on goods and services, along with social security contributions, which cover healthcare, pensions, and unemployment benefits. One of the unique features of Estonia's tax system is that corporate profits are only taxed when distributed as dividends, encouraging business reinvestment. The country’s straightforward tax structure, combined with digital services for filing taxes, makes it highly efficient and business-friendly.

Types of taxes

  • Income tax
  • Social security contributions
  • Value-added tax (VAT)
  • Land tax
  • Gambling tax
  • Transfer tax on immovable property

Tax year

January 1st to December 31st

Income tax rates

Flat, 20%

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Cost of Living in Estonia

The cost of living in Estonia is generally lower than in many European countries, making it an affordable option for both locals and expats — Estonia is cheaper than, for instance, Sweden, Germany, and Belgium. Housing costs are reasonable, especially outside the capital city of Tallinn, with rent and property prices being more affordable in smaller towns and rural areas. Groceries, utilities, and public transportation are relatively cheap, with efficient bus and train networks providing easy access to different parts of the country. Healthcare is of good quality and reasonably priced, with a mix of public and private options. Dining out and entertainment are also quite affordable, though prices can rise in tourist-heavy areas like Tallinn’s Old Town. Overall, Estonia offers a good standard of living at a lower cost compared to many EU countries.

Most expensive cities

  • Tallinn
  • Tartu
  • Pärnu

Most affordable cities

  • Narva
  • Viljandi
  • Kohtla-Järve

Average rent

Around €600 per month for a one-bedroom city center apartment

Average monthly expenses (excluding rent)

€850 for a single person

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International Companies Hiring in Estonia

Estonia is a hub for international companies, particularly in the tech and digital sectors, making it an attractive destination for global talent. Companies like Skype, which was originally founded in Estonia, have paved the way for the country’s impressive tech ecosystem. TransferWise (now Wise), a leading fintech company, also has significant operations in Estonia, hiring a diverse workforce. Bolt, a fast-growing mobility platform, and Pipedrive, a popular sales CRM, are other examples of successful Estonian-born companies that attract international talent. These companies, along with many others, are actively hiring in Estonia, offering opportunities in software development, digital marketing, customer support, and other fields. The country’s favorable business environment, combined with its status as a digital leader, continues to draw global companies looking to expand their teams in Estonia.

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Jobs in Estonia

Estonia has a growing job market, particularly in the tech and digital sectors, with numerous opportunities available for both local and international talent. The country’s status as a digital leader has attracted many global companies, creating a demand for skilled professionals in areas like software development, IT, and fintech. Additionally, there are plenty of English-speaking jobs, especially in international companies and startups, making Estonia an attractive destination for foreign professionals.

Top job sectors

  • IT
  • Manufacturing
  • Healthcare

Top high-demand jobs

  • IT specialists
  • Builders and technical workers
  • Medical professionals 

Working hours

Typically 40 hours per week

Probation period

Up to 4 months

Paid time off

28 calendar days per year

Public holidays

13

Unemployment rate

Approximately 8%

Common employee benefits

Government and private healthcare, unemployment insurance, supplementary pension, company cars

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Salaries in Estonia

Salaries in Estonia have been steadily rising in recent years, reflecting the country’s growing economy and thriving technology sector. Wages tend to be higher in the capital, Tallinn, and in industries like IT, finance, and engineering, where there is strong demand for skilled professionals. In contrast, salaries in smaller towns and in sectors like retail, hospitality, and agriculture are generally lower. Estonia's relatively low cost of living helps balance out the lower wages in certain areas, and the country's flat income tax system makes it simpler to calculate take-home pay.

Average salary

€24,084 (gross) per year

Minimum wage

€4.86 per hour

Highest-paying jobs

  • Marketing specialist: €26,667
  • HR manager: €28,200
  • Senior data analyst: €44,410
  • UX designer: €25,025
  • Project manager (IT): €34,400

Cities with the highest average salaries

  • Tallinn
  • Tartu
  • Pärnu

Pay frequency

Monthly

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Relocation Companies in Estonia

Moving to any country is always a complex process, but relocation companies in Estonia provide services to enable a smooth transition for both individuals and families. These companies offer assistance with finding housing, navigating immigration procedures, setting up utilities, and understanding local laws and customs. They cater to expatriates by offering tailored services such as language courses, cultural orientation, and school enrollment for children.

Top relocation companies in Estonia:

  • Gosselin
  • ELP Cargo
  • Expat Relocation Estonia
  • Adduco
  • MoveMaster
  • Magrat

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Healthcare & Insurance in Estonia

Estonia has a well-organized healthcare system that offers universal coverage to residents, largely funded through the Estonian Health Insurance Fund (EHIF), which is financed by social tax contributions. Most residents are automatically covered through employment, with employers contributing to their healthcare through social security payments. The system covers a wide range of services, including primary care, specialist consultations, hospitalization, and prescription medications, with most services being either free or low-cost for patients. Private health insurance is available but less common, as the public system generally meets the population's needs. Estonia is known for its efficient use of digital healthcare solutions, with electronic health records and e-prescriptions widely used to streamline services. The healthcare system ensures good access to care, although like many countries, there can sometimes be longer waiting times for certain specialist treatments.

Types of health Insurance

  • Public Health Insurance (Estonian Health Insurance Fund - EHIF)
  • Private health insurance
  • Voluntary health insurance contract

The cost of private health insurance

Basic plans cost between €30 and €50 per month

Expat insurance

You have to register as a resident and contribute to the Estonian public health insurance system

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Cities in Estonia

In Estonia, several cities stand out for their unique offerings. Tallinn, the capital, is the most popular choice, known for its blend of medieval architecture and excellent tech industry, making it ideal for professionals and families alike. Tartu, Estonia's second-largest city, is famous for its prestigious university and cultural scene, attracting students, academics, and those seeking a lively, youthful atmosphere. Pärnu, a coastal city, has a more relaxed pace of life with its beautiful beaches and is popular among those looking for a peaceful yet well-connected place to live. When making a choice, consider your lifestyle and the availability of jobs in your sphere.

Popular cities for relocation

  • Tallinn: The capital city, known for its vibrant tech scene, historical Old Town, and modern amenities.
  • Tartu: Estonia's second-largest city, renowned for its universities, cultural events, and research opportunities.
  • Pärnu: A coastal city famous for its beaches, spa culture, and relaxed lifestyle.
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