Investment highlights
- Fast growing economy on the crossroads of the new Europe
- Politically and economically stable town and region
- European quality at East European prices
- Strategically located in very close proximity to the Russian border and vast eastern market
- Production areas offer good businesses facilities with easy access to international roads and railway connections
- Flexible, well-educated and skilled multinational labour force
- Cost competitive labour, good infrastructure
- Modern means of communication make Narva accessible from any point on the globe
- Investment grade ratings: from Moody's-Baa I, from Standard & Poor's- BBB+, which is higher then in most countries in transition
Investment climate
Banks: Five main Estonian banks have their offices in Narva. The banking system is modern and efficient. Banks have a network of correspondent accounts in European countries, Russia and the US, and provide both domestic and international services (including Internet and telephone banking) at very competitive rate.
Business services: A full range of insurance is available. Both local and international firms provide accountancy and legal services.
Fiscal policy: Tax burden in Estonia is low compared to that in neighbouring countries. Estonia's liberal price policy and cutting of subsidies has enabled it to keep its revenue and expenditure at 33-35% of GDP Corporate profits are now free from income tax, (the rate was 26%). VAT is 20%. Health and social taxes are 33%. There are no export-import taxes in Estonia.
Foreign exchange regulation: The Estonian kroon is a convertible currency and is rapidly winning recognition in neighbouring countries.
Narva and European Union
Narva is the third largest town in Estonia and the biggest border and transit point. The beneficial geo-political position, the existence of a strong material and technical base and natural resources, and qualified labour force, make Narva a perfect platform for investment, placing orders for production, and the establishment of joint-venture companies. In a few years Estonia will join the EU and Narva will become an important European border town with huge business opportunities.
Investment for growth in North-Eastern Estonia
The following major companies have invested substantially in Narva since 1995:
Swedish Boras Wafveri privatized large textile company Kreenholm Manufacture.
Danish A.R Moller Group privatized "BALTi ES" company.
ALSTOM Power Estonia AS operates at Narva power stations.
The US company, Startekor has bought 49% of the shares of Narva Power Network.
McDonalds and Statoil jointly invested in Narva 4 mln. USD.
Neste, Shell have their gas stations here.
Deutsche Bank and Gazprom AO (Russia) own fertilisers and nitrogen compounds production in Kohtla-Jarve.
Velsicol Chemical Corporation (USA) produces Bensoic acid in Kohtla-Jarve.
There are several Estonian-Finish, Estonian-Swedish, Estonian-French joint ventures in Narva.
Narva's development sets opportunities for investors
The Estonian Government in its National Development Plan identifies North Eastern Estonia as one of the target regions for development.
A huge range of investment opportunities is available in sectors such as textiles, energy, furniture production, wood processing, food processing, transportation and transit of goods, infrastructure and public utilities.
Big challenges lie in information technology and innovation, which are set as priorities in Narva's development.
A unique architectural combination for Northern Europe in Narva provides for tourism development.
The position of the city on the river running into the Finish Gulf creates a splendid opportunity for a Narva Marina development, sea tourism, yacht and motorboat cruising.
There is a choice of free production and office space equipped with utilities including electricity, water and gas supply.
Transit development requires a logistics center, development of free bond warehouses, repair shops for trucks, etc.
Town needs good hotels, development in service sector, restaurant business and modern tourism infrastructure, local airport.
Business incubator is needed to imbed the new and quickly developing IT and R&D cornpanies.
A number of companies are expanding and need for foreign direct investment averaging to 250 000 USD per company.
Protection for investor
Foreign companies enjoy equal rights with local companies.
Estonia has no exchange controls or restrictions on foreign investments.
Companies can deduct expenses made to acquire or upgrade fixed assets and equipment from taxable income.
Unrestricted repatriation of profit and capital.
The business legal framework is in most part harmonized with EU requirements.
Estonia has investment promotion and protection agreements with more than 20 countries.
Double taxation avoidance treaties have been signed with 23 countries.
Changed 27.05.2010, 09:38
