Wealth Management in Estonia
Wealth Management in EstoniaUpdated on Saturday 04th March 2023
The legislation regulating investment funds in Estonia has been enacted in 2004 when the Investment Funds Act was adopted. As wealth management tools, Estonian investment funds provide many opportunities for both local and foreign individuals. Other popular wealth management instruments are represented by pension funds in Estonia. Both investment and pension funds are managed by management companies Estonia.
Among the most employed wealth management tools in Estonia are:
- common investment funds,
- investment funds established as Estonian public limited companies,
- mandatory and voluntary pension funds.
The Estonian legislation is very strict about the managers of investment and pension funds in the country, strict criteria being imposed for those managing these types of companies.
How attractive is Estonia as a wealth management destination?
Estonia has a well-developed financial sector that was reflected in investments in the real estate market during the last years. Private investors have preferred the real estate market as a wealth management tool over other investments.
Estonia is also one of the few countries in which investors may find more branches of foreign banks in the retail banking sector compared to the local banks. However, all banks cover a large number of segments providing investors various wealth management instruments.
The Tallinn Stock Exchange also offers many opportunities for those interested in trading stocks and bonds. There are also many small Estonian companies providing wealth management services, among them companies acting as investment advisory, portfolio management and securities brokerage. There are several subsidiaries of foreign companies providing wealth management services in Estonia.
Recently, reform measures were implemented in order to adhere to EU Directives such as the Market for Financial Instruments Directive (MiFID). Furthermore, the Estonian authorities want to change the legislation in order to ease the cross-border provision of financial services in order to comply with the OECD (Organization for Economic Co-operation and Development) Investment Committee’s requirements.
Our team also offers legal services for foreign nationals who are interested in applying for temporary or permanent residency in Estonia. Several conditions apply to those who wish to remain in the country, first as temporary residents, then as permanent ones, and our lawyers can help answer your questions. Do not hesitate to reach out to us if you have questions about your rights of residence.
Wealth management services in Estonia
Considering the multitude of Estonian companies in the wealth management sector, it is safe to say foreign investors will benefit from outstanding wealth management services. Among the available wealth management services available in Estonia are:
- estate planning,
- investment portfolio and asset management,
- financial planning,
For details about wealth management services and regulations please contact our law firm in Estonia.
We can also alswer your questions concerning the process needed to obtain permanent residency in Estonia.
High-net-worth individuals in Estonia or other investors who are interested in wealth management can also request our services if they are interested in relocating to the country permanently. We can answer questions about citizenship in Estonia, with a focus on the main conditions for acquiring this status. Wealthy foreign nationals will meet the permanent legal income requirement, however, they also need to comply with other criteria.
Immigration to Estonia is based on spending a sufficient number of consecutive years in the country, a time during which the foreign national renews his temporary residence permit. The period is the same (five years) both for EU/EEA and non-EU/EEA nationals, however, their applications are different. The former apply for a right of permanent residence while the latter apply for a long-term residence permit.