Expatriation in Estonia: the practical guide to living well

As one of Northern Europe’s undiscovered secrets, Estonia is a member of the European Union and the eurozone. With about 1.37 million inhabitants and a density of just 32 inhabitants per km², it offers an innovative legal and administrative framework, especially for entrepreneurs and foreign residents. Between omnipresent nature, digital innovation, and quality of life, Estonia is an attractive place to expatriate. Especially if searching for tranquillity and personal fulfilment.

If you’re thinking of moving there, our guide will help you through the administrative procedures, housing and cost of living to be expected, with concrete advice and tips to make your expatriation a success!

Estonia in a few words

• Estonia is a small country of about 1.3 million people 
• The official currency is the euro, making it easier for European expats to manage money
• The main cities are Tallinn (the capital), Tartu, and Narva 
• The economy has experienced a period of recession, with inflation linked to the Russian-Ukrainian conflict, but the country is gradually regaining its stability 
• Estonia stands out for its innovative and digital legal framework, especially thanks to e-Residency and the ease of setting up a business for foreign entrepreneurs 
• The cost of living and rents in Estonia are generally lower than in Western Europe, making it an attractive alternative for expats and investors 
• A small everyday detail not to be neglected: Estonians always take their shoes off when entering someone’s home. It’s non-negotiable!

Why live in Estonia?

The advantages of living in Estonia

• A very efficient, simple and fast administration, with 99% of public services accessible online. Making the daily expat life much easier. Most administrative information and official communications are done by email, thus speeding up the process. Thanks to the digital identity card, it is possible to sign documents, open a bank account, or declare your taxes remotely.
• An Estonian tax system that is among the simplest in Europe, with fast and transparent online management, and a fixed tax rate of 22%.
• An excellent environment for entrepreneurs, especially in the digital sector, with an innovative digital framework and schemes such as e-Residency that attract many European entrepreneurs. This environment has nurtured businesses such as Skype.
• Welcoming and polite inhabitants, though they can be reserved at first.
• Constant nature, with just over 50% of the country covered by forests.
• A lower cost of living than in many European countries, especially in Western Europe.

Possible disadvantages

• The temperature in winter can drop to -15°C. For those who don’t like snow, the Estonian climate isn’t for you. The days are also very short in the winter seasons, with the sun rising around 9am-10am and setting around 3pm-4pm. Conversely, in summer, you can have up to 22 hours of light per day.
• Estonian and Russian can be difficult to learn, but if you are fluent in English, communicating is still easy, especially in Tallinn.
• The administrative process for obtaining a visa or residence permit in Estonia can be complex depending on your nationality. This includes applying to the Police and Border Guard Board, with a processing time of 2 to 3 months for a temporary resident permit.
• When looking for accommodation, it is often necessary to make a decision quickly to not miss an opportunity. Attractive properties sell quickly.

Before you go: advice and preparation for expatriation

Before taking the plunge and moving to Estonia, it is essential to prepare your expatriation project well. Taking the time to find out about the cost of living in big cities such as Tallinn or Tartu allows you to anticipate your budget and avoid unpleasant surprises. Even though the cost of living in Estonia is lower than many Western European countries, it varies according to lifestyle and location, especially for housing or leisure.

The administrative procedures are an essential step: you must learn the formalities to be completed to obtain a visa or a residence permit, depending on your situation. Opening a bank account in Estonia is usually simple, especially thanks to the country’s modern digital system, but it’s advisable to compare offers and prepare the necessary documents in advance.

On the health side, the Estonian health system offers quality and efficiency, but taking out supplementary health insurance ensures optimal coverage, especially for specialized care. For families, it is important to look at the education system, which offers quality public and international schools, mainly in Tallinn.

To facilitate your integration and enjoy life in Estonia to the fullest, you should learn a few words of the local language and familiarize yourself with Estonian traditions. There are many official websites and expat associations that offer useful resources – don’t hesitate to talk to other expats about their experiences and advice.

Good preparation is the key to a successful and serene expatriation in this member country of the European Union.

Administrative formalities for moving to Estonia

If you are a citizen of an EU, EEA, or Swiss member country

1. Register your place of residence

You can reside in Estonia for up to 3 months without any special procedure. Beyond that, it is necessary to register your place of residence. 

To do this, you have three main options: 

• Declare your residence via the electronic register by logging in with your identity card;
• Go to the municipality or district administration of the district where you live (in Tallinn, for example);
• Carry out the procedure by mail to the local administration.

You will find all the information, as well as useful addresses and links, on the official state portal: EESTI Register your residence.  

2. Apply for your Estonian ID Card

You can then apply for an Estonian ID card, which is valid for up to 5 years. To do this, you must submit an application to a service office in your region. The drop-off points are easily accessible via an interactive map. 

All the details are available on the official website of the Police and Border Guard Council: Politsei. 

If you are a citizen of a third country

Apply for a long-stay visa

You must apply for a D-visa (national long-stay visa), which is valid for up to 1 year. In case of two consecutive long-stay visas, the total duration of your stay must not exceed 548 days in a period of 730 consecutive days. 

The application is made at the Estonian embassy in your country of residence or through an official representative. 

You will need to provide the following documents: 

• A valid passport or ID card 
• The completed and signed application form 
• A colour passport photo not older than 6 months 
• Travel medical insurance 
• Proof of financial resources 
• A travel booking confirmation

You can find all the information on the website of the Estonian Ministry of Foreign Affairs: vm.ee long-stay visa. 

A specific visa for digital nomads

Estonia has also implemented a dedicated visa for self-employed workers who want to move to the country and work remotely. This is a subcategory of the D-visa.

This visa is valid for up to 1 year and is accessible to digital nomads with a minimum net income of €4,500 per month. You can apply online here.

Where to stay in Estonia?

Tallinn for professional or family life

Living in or around the city centre, in neighbourhoods such as Lasnamäe, Mustamäe, Põhja-Tallinn, or Kesklinn, provides access to shops, sights, and public transport (free for registered residents).

Tartu, a dynamic student city

Tartu is Estonia’s university city as it’s home to the University of Tartu, the most prestigious in the country.

There is a young and lively atmosphere, with many cafes, bars, and shops. Cultural and artistic life is particularly developed here, especially in summer.

The city is also very green, with trees everywhere in the streets.

Pärnu, or life by the sea

Pärnu is a small coastal town that is well known for being a popular seaside resort. It is renowned for its sandy beaches, nature, and lively summer atmosphere.

In summer, the city attracts many tourists and the atmosphere becomes particularly lively and festive.

The expatriates who settle there are mainly digital nomads, teleworking employees, or retirees. This is because professional opportunities are more limited than in Tallinn and Tartu.

Cost of living in Estonia for an expat

To live in Estonia, a person living alone must plan a monthly budget of around €1,300, including rent. A family of four should aim for about €4,400 per month. 

The cost of living in Estonia is about 25% lower than in the UK, and 18% lower than in Germany. 

However, the monthly budget to plan for varies depending on your lifestyle and city of residence. In recent years, property prices in Tallinn, especially in popular areas, have increased. 

Expect on average €1,300 per month for a 3-bedroom apartment in the city centre in Tallinn, compared to €1,000 per month in Tartu. 

Working in Estonia: Everything you need to know

Lots of opportunities for expats

The employment rate in Estonia is higher than the European Union average, with more than 11% of professionals as expatriates. There’s a real demand for qualified profiles, particularly in the following sectors: 

• Tech and IT,
• Engineering,
• Metallurgy,
• Teaching,
• Health professions.

The Silicon Forest of the Baltic region

Estonia has established itself as a digital hub in Europe. A dynamic start-up ecosystem is developing, in particular thanks to the e-Residence, a digital identity card for entrepreneurs.

This innovative scheme allows entrepreneurs to set up and run an online business in Estonia, without requiring physical residence in the country. This digital ID card offers the ability to sign documents, open bank accounts, and file taxes remotely, which attracts many European entrepreneurs who want to take advantage of an advanced digital environment. More than 25,000 companies have already been created in this way.

Attractive taxation

Estonia has consistently been at the top of the Tax Competitiveness Index for more than 10 years. Its tax system is considered to be one of the simplest in Europe: the tax return is done online in less than 5 minutes thanks to pre-filled forms.

• Income tax is proportional (flat tax): 20%, then 22% from January 2025 and 24% in July 2025, with a basic allowance of EUR 654 per month.
• Social security contributions amount to 33% of gross salary (20% for health insurance, 13% for pensions), with the employee contributing 1.6% for unemployment insurance and 2% for compulsory private pensions.
• Corporate tax is a one-time tax of 20% and only applies to dividends distributed (14% for regular distributions). Corporate profits are not taxed as long as they remain in the company, allowing reinvestment without immediate taxation.

A typically Nordic work culture

Working in Estonia, you quickly notice that the employees are rigorous at all levels:

• Quality of work,
• Punctuality,
• Timeliness.

Contrary to some preconceived ideas, corporate communication is not cold, but simply direct and cordial. Between colleagues, expats usually end up breaking the ice over time.

The Estonian health system

The healthcare system in Estonia is a reflection of the country – highly digitized and constantly improving. Residents are required to contribute to compulsory health insurance, often supplemented by private health insurance.

Care is provided by public and private establishments, spread over the territory. Some of the country’s leading hospitals include:

• Tartu University Hospital
• The East Tallinn Central Hospital
• The Regional Hospital of Northern Estonia (PERH)

Health coverage adapted to expatriates

To protect themselves and their families, many expats choose private international health insurance, tailored to an international lifestyle.

At Global Health, a specialist in expatriate coverage, we offer personalized healthcare solutions. They adapt to the lifestyle of expats and people who live between several countries.

With us, you benefit from:

• Online teleconsultations and second medical opinion
• 5 fully modular levels of coverage
• International multilingual support, with local expertise and support
• 100% digital management
• Complementary well-being services (fitness, mental health coaching, etc.)

Education in Estonia: schools and universities for expats

Estonia’s education system is recognized for its quality and international openness, making it a major asset for expatriate families. In Tallinn and Tartu, expats can choose between –

• Free and reputable public schools that provide education in Estonian,
• International schools that offer courses in English, adapted to children from abroad.

The most popular international schools, such as the International School of Tallinn or the Tartu International School, offer world-renowned programmes, such as the International Baccalaureate (IB) or the Cambridge International Programme. These institutions promote the integration of children into a multicultural environment and facilitate the pursuit of studies in other countries.

What is life like in Estonia?

Transportation

The bus is the preferred means of transport for Estonians, both for urban and intercity journeys. In Tallinn, trams and trolleybuses complete the network.

The capital also has something unique – public transport is free for residents. There are no complicated formalities to use public transport in Tallinn, which makes life much easier for newcomers. An official website allows you to check the conditions of free travel as well as the transport schedules.

The rail network connects the main cities with each other, while ferries allow you to visit Estonia’s many islands and islets (more than 1,500 in total).

You can also get around by car. No international licence is necessary: UK and European licences are recognised. Though you will need to exchange yours for an Estonian one if you become a resident. No additional test required.

Family life

Estonia is a great country to live in with your family. Daily life is rather quiet, even in Tallinn, partly thanks to the country’s modest size and relatively small population. In terms of security, Estonia is considered a safe country!

In terms of activities, there is no shortage of options for families:

• Explore the many national parks, such as Lahemaa, Matsalu, or Soomaa.
• Discover the Estonian islands, such as Kihnu, or Manija.
• Stroll through Tallinn’s historic streets and visit its museums.
• Take advantage of the Baltic Sea in summer for swimming.
• Learn about basketball, one of the most popular sports in the country.

On the education side, several establishments are recognized, including:

• International School of Tallinn,
• Tallinn European School,
• The French Lycée in Tallinn (Tallinna Prantsuse Lütseumi).

Get ready for rustic cooking!

It’s impossible to end this guide without talking about Estonian cuisine. It is rather generous and quite rich, which is perfect for facing cold winters.

Specialties include rukkileib (national black rye bread), verivorst (black pudding, mostly eaten at Christmas) and kohuke (a chocolate-covered cheese snack).

Integrating in Estonia: tips for a successful expatriation

Successful expatriation in Estonia depends above all on a good integration into local life. Even though English is widely spoken, learning a few words of Estonian, such as “tere” (hello) or “aitäh” (thank you), is a gesture appreciated by Estonians and facilitates daily exchanges. Discovering the traditions, gastronomy, and local festivals also allows you to better understand the culture of this small country on the Baltic Sea.

To build relationships and share your experience, it is advisable to join expatriate groups or local associations, which are very active in Tallinn and other major cities. Participating in cultural events, festivals, or sports activities is also a great way to meet locals and other expats, while learning about the benefits of living in Estonia.

Integrating also means accepting differences and remaining open to new ways of life, whether it is the Nordic climate, the modernity of the digital system or the natural discretion of Estonians. By being willing to adapt and learn, everyone can take full advantage of their expat experience and discover the richness of this European Union member country.