Around 4,000 British companies have taken up virtual residence in Estonia post-Brexit, Prime Minister Kaja Kallas (Reform) told the website of free London business paper City A.M., adding that Estonia has as a result benefited hugely from the United Kingdom's departure from the European Union.
"When the U.K. decided to leave the EU, many British friends took up our e-residency services," Kallas told City A.M.
"It clearly increased after Brexit, even before actually, even as the vote happened, we saw a spike," she continued.
Low corporate tax rates in Estonia, and the country's strong tech sector, also provided the impetus, Kallas said.
"What I don't understand is why not all countries take up our system; it's the most competitive system out there," Kallas continued, adding that a 60 percent rise in tax revenues, totaling €51 million, has been experienced over the past year.
The full City A.M. piece is here.
Finance minister in talks with OECD over its planned 15 percent minimum corporate tax
Estonia places no corporate income tax on retained and reinvested profits, meaning Estonian resident companies and the permanent establishments of foreign entities (including branches) are subject to 0 percent income tax for all reinvested and retained profits, with a 20 percent income tax only on all distributed profits (both actual and deemed).
Earlier this week, Minister of Finance Keit Pentus-Rosimannus (Reform) met with U.S. Secretary of Commerce Gina Raimondo and the Secretary-General of OECD Mathias Cormann to discuss the OECD-led international tax reform which would set corporation tax to a global minimum of 15 percent.
Editor: Andrew Whyte