Estonia is a model jurisdiction for capital gains tax, and between 2005 and 2015 it became one of the most popular destinations for IT companies.

⚖️ How does it differ from Ukraine?

It is easy to register an Estonian company and just as easy to manage it – even whilst abroad

A Ukrainian company is easy to register but difficult to run – there’s a mountain of paperwork, HR and military registration requirements, and fines for exceeding the permitted number of specialists

📜 The reason lies in the Soviet legacy in business practices, from which Ukraine has still not moved on.

That said, the arrangement involving an R&D office in Ukraine and payments channelled via a sole trader and an Estonian company works in exactly the same way – provided the parties are unrelated, this is not considered a hidden profit transfer.