One of the most significant benefits of setting up an SPV in Estonia is the tax system. Unlike many other countries, Estonia doesn’t tax reinvested profits—corporate tax is only applied when dividends are distributed. This allows companies to reinvest earnings tax-free, which is particularly useful for businesses aiming to grow quickly by reinvesting profits.
Furthermore, Estonia has entered into double tax treaties with over 60 countries, allowing investors to avoid double taxation, a critical factor for cross-border investments.