Starting 2025, substantial legislative changes in Estonia will affect taxation, investments, international trade, and digitalization. These reforms provide businesses with new opportunities for growth while requiring preparation for new conditions and revisions to business strategies.
Eesti Firma, specializing in company registration, business consulting, and accounting support, assists entrepreneurs in adapting to changes and leveraging legislative innovations to achieve their goals.
What Will Change for Businesses in 2025
In this article, we will thoroughly analyze the key changes that will impact entrepreneurial activities and provide practical and detailed recommendations on how to adapt your business to the new requirements.
We will discuss which reforms are most critical for your company and highlight the opportunities these changes can offer. Additionally, we will explain potential risks and how to mitigate their impact.
Expansion of Investment Account Capabilities
From next year, investment account holders will be able to invest in crypto assets registered through EU supervisory authorities. This expands the range of investment tools for entrepreneurs interested in asset diversification.
Additionally, the investment account regime will apply to brokerage accounts and crowdfunding investments. Losses from invalid assets or bad debts can now be deducted from income, reducing the tax burden.
Tax Rate Increases
Tax changes will impact nearly all business sectors:
- Income Tax: Starting January 1, the rate for individuals and corporations will rise to 22%. By 2026, a safety tax will increase it to 24%, necessitating a review of tax planning strategies.
- Value-Added Tax (VAT): The VAT rate will rise to 24% in July 2025. For accommodation services (hotels, hostels), the rate will increase to 13%, and for print and electronic publications, it will be 9%, impacting pricing strategies.
- Land Tax: Differentiated rates will apply – up to 1% for residential and household land and up to 2% for other categories (commercial, industrial, etc.).
- Safety Tax: An additional levy, effective July 2025, will further increase the tax burden on businesses.
- Dividend Tax: The reduced dividend tax rate will be abolished in 2025.
Simplification for Small Businesses
Conditions for SMEs operating within the EU will be simplified. Commercial operations in other EU countries can now be conducted without tax registration until turnover reaches €100,000, creating new opportunities for export and business expansion.
Electronic Invoicing
Simplified rules for electronic invoicing will take effect in July 2025. These changes reduce administrative burdens and speed up payment processing. Companies can streamline their document workflows, while customers can request electronic invoices via the Commercial Register.
How Will These Changes Affect Your Business?
New rules present both opportunities and challenges. The expansion of investment account options and simplified EU trade regulations open growth prospects, but higher taxes necessitate a review of financial strategies.
For small businesses, these changes offer chances to enter new markets but also require adherence to additional documentation and reporting standards. Transitioning to digital payment systems is a step forward, but it demands resources and preparation.
How Eesti Firma Can Help Your Business
Eesti Firma offers a full range of services to ensure your business complies with the new legislative requirements, providing comprehensive support tailored to the unique needs of each enterprise. Our team of experts understands the complexities of the new legal landscape and is equipped to guide you through every step of the adaptation process.
- Tax Planning: We help minimize tax burdens amidst rising rates and new levies.
- Investment Account Consultation: Learn how to leverage new investment opportunities and deduct losses effectively.
- International Trade: We assist SMEs entering EU markets and managing tax reporting.
- Digitalization: We support the implementation of electronic invoicing and process automation.
- Legal Assistance: We clarify new laws and help adapt to the changing rules.
By partnering with Eesti Firma, your business gains access to a reliable ally committed to your success, ensuring that you not only meet the new requirements but also thrive in the evolving economic landscape.
Contact Us!
Reach out to discuss how we can help your business adapt to the new rules and maximize their benefits. We offer professional consultations, personalized solutions, and full support at every stage.
Submit a request on our website, and our experts will contact you to develop a strategy tailored to your needs. Don’t miss the chance to prepare your business for new challenges and seize every growth opportunity.
