FX Excursions

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Tallinn: Foreign Investment Destination

by Gtrav

Apr 1, 2004
2004 / April 2004

With Estonia’s admission into the European Union and the country’s reputation as a forward-thinking and somewhat liberal republic, Tallinn is poised to take its place on the world stage.

Located on the Gulf of Finland and the Baltic Sea, Estonia’s capital city traces its roots to the days of Viking explorers, when it played a key role in maritime trade. With such longstanding international influence, it’s no wonder Tallinn emerged from decades of Soviet rule with seemingly little effort in 1991. As the westernmost of all former Soviet states, Estonia and its capital city have long identified with Finland, its neighbor to the north. The Finnish capital, Helsinki, is less than 50 miles away from Tallinn, across the Gulf of Finland

Considered one of the most striking cities in the Baltic region, Tallinn is rich in cultural heritage. In the dozen years since Estonia regained its independence, Tallinn has gracefully accepted its role as a cosmopolitan European capital. With initial turmoil settled (tension between the newly independent Estonia and Russia remained an issue until the latter recognized Estonian independence in 1997), Tallinn eagerly welcomes visitors from around the world. That’s a coup in itself for a city that was off-limits to tourists for much of the 20th century.

As the leading city in one of the most rapidly developing economies in the Baltics, Tallinn is gaining recognition as an attractive destination for foreign investment. The city’s welleducated and cost-efficient workforce is a key draw. The population boasts a propensity for foreign languages and is highly computer literate-both valuable commodities in a country where the economy is driven by knowledgebased, export-oriented services and manufacturing. A whopping 70 percent of Tallinn’s workforce is employed in the service sector.

A quick look at investor-friendly attitude provides more insight into the county’s quick adjustment to a free-market economy. Due in part to its small size, Estonia enjoys substantial flexibility in the realm of economic reform. By and large, analysts and economic watchdogs worldwide predict a bright future for the country’s economy, both in the medium- and long-term. That assessment rises from Estonia’s willingness to adopt progressive foreign trade legislation.

If a foreign company wishes to provide goods or services in Estonia on a permanent basis, it must register its branch office in the Commercial Register. The foreign company remains fully liable for the obligations of its Estonian branch, which operates under the name of the foreign country with the addition of the suffix “Eesti.” At least one of the company’s managers must reside in Estonia.

With its commercial infrastructure (telecommunications, commerce, services, banking, etc.) well established, Estonia is now turning its focus to the further development of its industrial sector, including upgrading its export infrastructure, promoting vocational education and targeting new markets.

For more detailed information, visit the city of Tallinn’s Web site (www.tallinn.ee/eng). The portal is a study in organization, easily outshining Web sites of some of the world’s largest and best-known urban centers.


Just the Facts

Climate

The climate in Tallinn is characterized by a fairly cold winter, a cool spring with little precipitation, a moderately warm summer and a long and rainy autumn.


Time

GMT +2

Languages

Estonia’s official language is Estonian. Russian, Finnish, English and German are also widely
understood and spoken.

Visas and customs

Visitors arriving in Estonia must have valid national passports. A customs guide for travelers
to Estonia can be found at www.customs.ee.

Currency

Estonia’s official currency, the kroon (EEK) is tied to the euro. As we go to press, the rate of exchange is EUR 15.65 to EEK 1 or US 12.75 to EEK 1.

Communications

To call Tallinn from abroad, dial the internationa l access code and 372 for Estonia, then dial
the telephone number.Within Estonia, you can make local and international calls from
card-operated public telephones. Telephone cards are sold at newsstands, post offices and
at the tourist information office.

Power Supply

Current is 220 volts AC, 50 Hz accessed via European-style two-pin plugs.

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