Anyone here have experience with have a Estonian company?


(Nyla) #1

Hi,

I’m looking to network with some people who have businesses based out of Estonia. I’ve read a few articles but I’m still unclear on a few things.

  1. Can you expense all the cost of running your business, with your company bank account/credit card? I’m presuming, yes??

  2. You can pay yourself a salary of less than €1200 without paying taxes, what’s the process to doing this?

  3. Bookkeeping, how does this work? How do you send your receipts to their bookkeeping services?

If you got a business based out of Estonia, I’d love to hear from your experience with basing your business out of there.


(Thomas Lidforss) #2

I would recommend, take a look at the Estonian company LeapIN . They offer
the following services; “LeapIN is a turn-key solution to set up a location independent company with a bank account. We handle incorporation, accounting, taxes and compliance.” You can do all the steps yourself but for the startup cost of €49/month I think this is a good starting step. Later you can quit service and take of all of it yourself with a tax/accounting services company you choose.


(Thomas K. Running) #3

I’ll try to come back and write a longer response in a bit, but briefly:

  1. Yes, as long as it’s a justified business expense
  2. & 3. If you’re using a company like LeapIN, then they take care of all of this for you. If you’re interested in their service I’ve negotiated a discount for Nomad Gate members. Use the code “NOMAD” when signing up to get €100 off.

(Nyla) #4

Yes, I’m definitely going to consider LeapIn when I’m ready to form the company.

Technically, I can expense where I live as operating cost as it is a home based business. Does this mean the leasing agreement has to be under the business name? It shouldn’t have to be right?

It’s like me traveling to a hotel and stay there, the hotel is consider a business expense. But my place of residence where I operate the business should also be too as well?

This gets kinda confusing with a location independent country.

I appreciate you taking the time to read and replying.


(Nyla) #5

Great, thanks for the coupon code.


(Thomas K. Running) #6

No, I don’t think you can deduct rent for your personal apartment, even if you work from there.

This is a list of costs that are not allowed to be claimed as business expenses (from this LeapIN FAQ):

  • Purchase of food and drinks for personal use
  • Purchase of clothes
  • Purchase of fuel for your personal car for everyday use
  • Rent of your house or apartment
  • Costs of holidays
  • Costs of your family/friends
  • Costs of personal healthcare, insurance etc

Check out that LeapIN FAQ, it’s quite useful :slight_smile:


(Nyla) #7

I was going to join LeapIN, but I read that you can’t do cash transactions. That’s kind of crazy, since most places you want to live and spend your time, won’t all have machines to accept cards. I was on a tropical island for 1 month with 2mb of internet. Or what happens if they are malfunctioning. You need to be able to withdraw cash to pay for your things.

The rules outline doesn’t make sense. You run your business out of your hotel, or wherever you are staying. So technically, it is a business expense but you can’t expense it. But you can expense your internet and phone bill?


(Nyla) #8

Are there other companies besides LeapIN?


(Thomas K. Running) #9

1office is also good from what I hear.

However, it’s my understanding that you can still pay for stuff in cash (using your own money) then reimbursing yourself from the company account using bank transfer. Just keep the invoices/receipts. What you cannot do is withdrawing cash directly from the company account. But I’d recommend verifying this with LeapIN just in case.


(Nyla) #10

Ok, thanks for the info. That’s good to know.

Do you have an Estonian based company? How are you finding it so far, if you do have one?


(Nyla) #11

Do you have a email or a point of contact from LeapIn so I can make all my questions to them.

The same to 1Office too?

I will need to set up a company soon, so I need to be clear on all these processes before I can start.

Thanks for taking the time to answer all my questions. I really appreciate it by the way.


(Thomas K. Running) #12

1office: tallinn@1office.co
LeapIN: info@leapin.eu

I do have one, but I mostly opened it for testing purposes. For now it’s only used for passive investment of a few thousand euros in index funds, so I don’t actually have any experience running an active Estonian company. Opening one is super easy, and compliance is definitely easy if you use LeapIN, 1office, or similar providers. For an active company paying salaries, VAT, etc, I’d say the monthly reporting requirement would be slightly annoying if you did your own accounting and reporting, hence why I recommend outsourcing that bit for an active business.


(Nyla) #13

Thanks for all this info. I’m going to check in with these guys.

Where did you pick to start a company, if it’s not with Estonia?