Advantages of the Estonian Free Trade Zones

The business environment in the Estonian free trade zones

The relocation of a business to another country can often prove a wise choice for investors. Estonia is one of the Baltic States that have progressed a lot in providing foreign investors a welcoming business environment and investment incentives for establishing new companies in the country. Some of these incentives refer to the economic free trade zones. Estonia has four economic free trade zones that mainly offer companies tax exemptions but other tax minimization solutions can also be employed while operating in one of these free zones. Estonia’s free trade zones are Paldiski, Muuga, Sillamäe and Valga. While the first three are active, Valga is not used anymore. Free trade zones can be defined as economic areas located in a specific geographical location that can allow goods to be processed and stocked and where enterprises are not required to pay customs or certain taxes.

The Paldiski free trade zone in Estonia

The Paldiski Sadamate AS is located in the Northern Port of Paldiski at about 50 km from the Estonian capital, Tallinn. The Paldiski free trade zone was established in 2011 and it is 100% privately owned. The main advantage for investors is that the Paldiski Port is the nearest port to Europe. Owners of companies investing in the transportation of goods and vehicles benefit from several privileges such as the option of keeping their vehicles in the Paldiski Port without being required to pay customs duties and with reimbursement when filing for VAT. The Northern Port of Paldiski is part of the Estonian Port Association, the Chamber of Commerce and Coordinating Council of Trans-Siberian Transportation in Estonia.

The Muuga Industrial Park in Estonia

The Muuga free trade zone is established in the Southern Muuga Harbor and it is the closest to the capital Tallinn, at almost 20 km. It is also the largest port in Estonia. The Muuga free trade zone expands on 75 hectares of land of which 50 hectares are prepared for potential clients. Estonian companies have also the possibility to register the land plots as immovable property. The Muuga free trade zone provides good communication routes on land and sea. The Muuga Industrial Park was designed for warehousing and distribution facilities, but also for companies producing commodities.

 The Sillamäe free trade zone

The Sillamäe Port is located in Eastern Estonia at 186 km from Tallinn. The Sillamäe free trade zone is the closest port to Russia and it provides the best communication routes by sea and by railway for cargo companies. The Sillamäe port can boast four big terminals: Alexela Sillamäe, BCT, Silsteve and Tankchem. Our law firm in Estonia can provide valuable information about the newest Business Incubation Centre (BIC) in the Sillamäe free trade zone. The Business Incubation Centre was created in order to support new companies establishing in the Sillamäe Port.

As free trade zone facilities in Estonia keep developing we will make sure to have our readers informed about them.