LOCATION
Estonia has a unique geopolitical location in Northern Europe, making it the ideal logistics hub as a gateway between the East and the West – south of Scandinavia. Estonia is a stable liberal democracy with a neutral and transparent legal system.
There is no need to worry about corruption or legislative changes against aircraft operation or ownership.
BUSINESS ENVIRONMENT
All investments are treated equally without sanctions or extra taxation, while state aid is granted under common EU directives without any preference given to local operators or businesses. The Estonian government welcomes international investors and the country ranks very high in the Ease of Doing Business Index. The aviation industry is widely regarded as a great contributor to the national GDP.
Estonia’s legal system is supportive of new innovative solutions that foster the country’s economy and boosts new business. The flexibility of the Estonian political and administrative system stems from its eagerness to adapt to new challenges and embrace technological advancements owing to the e-Estonia mentality.
SAFE AND SECURE
Estonia is a member of NATO, OECD, the Eurozone, and the European Union – this serves as the best warranty to keep your aircraft safe and secure.
Estonia is one of the safest countries in the world from a business perspective and the country sternly follows international rule-of-law, providing assurance of private ownership being respected on private and national levels. The country adopted the Euro as its currency in 2011, thus safeguarding itself against out-of-control inflation or foolhardy fiscal policy decisions on a local government level.
LOW TAXES AND STATE FEES
Estonia’s economic success relies heavily on the decision to abolish the corporate income tax on reinvested profits. Foreign and local entrepreneurs alike appreciate the lack of a wealth or property tax or extra bureaucracy taxes in aviation.
Earnings from the sale of an aircraft are not taxed if the profits remain within the company and reinvested funds from the sale aren’t taxed either. Business incorporation requirements feature virtually zero capital investments. The fees for aviation processes are government-administered with no extra fees allowed, making Estonian aviation fees particularly low in comparison with the rest of the world.
AIRCRAFT REGISTRATION – ES-REG
Aircraft can be registered through the Estonian Civil Aviation Authority website, thus eliminating the need for the physical presence of the aircraft owner or the aircraft itself. The agreement with local aviation officials allows aircraft to be registered in Estonia without the aircraft physically present in Estonia before registration. The Civil Aviation Authority in Estonia is focused on streamlining the process even further.
HIGH REGULATORY STANDARDS
Estonian airworthiness requirements are of the highest standard, meaning that the aircraft will maintain its value after registering in Estonia, making it easier to sell and safer to fly.
LIMITED BUREAUCRACY FROM LOCAL AUTHORITIES
Aircraft operators are expected to follow EASA directives, while local authorities support and reward efficiency and professionalism – there are no additional processes for safety other than those related to EASA requirements. The playing field is equal and fair for all aviation operators, regardless of their domestic or international origin.
Estonian aircraft operators can be approved and certified for private, commercial and business operations and the authorities have the certification to provide approval for international operations such as RVSM, MNPS, RNAV, and DGR.
PROFESSIONAL OPERATORS
The aviation industry in Estonia represents a wide variety of local air operators with the necessary experience and world-class know-how in the following services for business, commercial and private operation of aircraft:
AVIATION PROGENY
The government-funded and EASA-certified Estonian Aviation Academy educates aviation professionals in the fields of aircraft maintenance engineering, aviation management, and commercial aviation flight crew.
INNOVATIVE IT SOLUTIONS
Estonia is famous worldwide for its ICT-prowess and ease of doing business electronically. The national ID-card system has been expanded to include foreign nationals as well, allowing to create a virtual Estonian residency through the e-Residency program. These efficient and comfortable solutions allow foreign nationals to establish a company in Estonia (including an aviation enterprise), to exchange encrypted and digitally signed documents between private partners and the government alike, to open bank accounts and conduct secure bank transfers and above all, declare taxes electronically without physical presence. Most interaction with the government and public authorities can be handled online.