EST FLAG

A forward-looking maritime nation and one of the world’s most digitally advanced societies welcomes ship owners to register their ship under the Estonian flag.

Estonia is the first fully digitally transformed country with 99% of government services available online 24/7. Estonia has a high competence in marine sector and leading companies in Baltic Sea region that provide ship design and prototyping, in addition producing commercial and leisure vessels, electronics, and equipment. Also, we are faced to the future and constantly developing. In Estonia there are companies and solutions to build, repair and retrofit ships to meet all standards in future perspective including topics like energy efficiency, greener solutions and blue economy. In addition, we are proud of our modern infrastructural solutions – ports, docks, building facilities and all about R&D.

Estonia supports the international activities and development of shipping companies with a special package of laws, thanks to which shipowners, crewing companies and technical management service providers can obtain more favourable tax conditions and benefits of Estonian ship flag. One of the most important aspects besides developing services more and more digital and convenient, is to improve maritime sector towards the future. The best example for this is continuous and close cooperation between both the public and private sectors to improve furthermore “shipping packages” laws to offer best possible conditions for shipping and maritime sector.

The Government of Estonia along with Estonia Transport Administration is constantly working on Estonian ship flag to provide, improve and develop the package to best possible way to offer ship owner or operator competitive service within this field. Our so-called “shipping package” provides favourable tax conditions for shipping companies, expediting establishment of shore-based enterprises in Estonia. We have already developed the most advanced digital maritime services, where ships can be registered swiftly and remotely. In addition, Estonia offers prompt and reliable solutions, including digital signature and remote notarial authentication. Through e-Residency, a government-issued digital identity, entrepreneurs can start and manage an EU-based company. In addition, Estonia is included in the Paris MoU white flag list and our tonnage tax is comparable with other well-known EU flag states.

Mentioned information systems are only few examples of what Estonia is developed for maritime sector. As a country with a best education in Europe, Estonia has highly educated seafarers, who are ready to work at various positions on both at sea and on land. It is convenient to hire seafarers from Estonia - our tax regime offers benefits for the shipowners and crew alike. In addition, our tonnage tax is comparable with other well-known EU flag states and Estonia offers a competitive business environment with 0% income tax on retained and reinvested profits. Also, a crew member special remuneration system. For example, if a seafarer is working on a ship, which is eligible for the tax regime, the rate of the income tax on the income of the crew members is 0%. The rest of the labour taxes (social tax, unemployment insurance premiums, contributions to a voluntary funded pension) will be calculated based on a 750-euro tax base, and the social tax will be reduced from 33% to 20%.

We welcome you under the EST Flag – the best flag!