Foreign investment has developed progressively in Estonia in the last decade due to the country’s constant economic growth. The country has become one of the most attractive destinations for foreign direct investment thanks to the Estonian government’s pro-investment legislation. Creating lucrative conditions for FDI has been an important matter for Estonia’s economic development.
Estonia has a well-developed strategy for FDI in the IT, biotechnology and organic agriculture fields. The budget allocations, the free exchange regime, the fact that there are no restrictions applied to currency, dividends and funds and their conversion is free are part of that strategy. In case of companies that decide to terminate their business in Estonia all assets will be repatriated without any restrictions. These policies and the Estonian pro-investment legislation have led to massive foreign investments in Estonia in the last years.
Foreign companies benefit from equal rights and obligations with the inland companies, a factor that allowed foreigners to open companies in Estonia without any restrictions.
The country has also adhered to international agreements for protecting foreign investments and has concluded treaties with more than 30 countries including the United States of America, France, Germany and Switzerland. Estonia has signed double tax treaties with more than 50 countries in order to avoid double taxation on income.
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