Estonia: New Rules Forthcoming for Businesses Seeking to Hire Foreign Workers
May 29, 2025
At a Glance
Effective January 1, 2026, the government will impose new restrictions on businesses based in Estonia hiring foreign workers, including:
- A new rule for companies applying for a temporary residence permit to prove at least six consecutive months of actual business activity in Estonia;
- A new rule for temporary work agencies leasing out foreign workers to prove six months of actual business activity in either Estonia or another European Economic Area Member State; and
- New rules for employers hiring foreign workers to register with the Estonian business register.
The situation
Starting January 1, 2026, new regulations will introduce additional requirements for businesses in Estonia hiring foreign workers, including proof of operational activity and official registration.
A closer look
DETAILS | IMPACT |
New business activity requirement.
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New related rule for temporary work agencies.
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New business registration rule.
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Background
- Equal labor rule protection. Through these reforms, the government intends to ensure that foreign nationals working in Estonia are subject to similar labor, tax and social security rules, including equivalent protections under such laws.
- Increasing local employment. By restricting the ability of foreign companies to send employees on temporary assignments under the payroll of the home country, the government intends to encourage companies to engage more local talent.
Looking ahead
Estonia’s parliament is considering a law that would grant the right to appeal visa refusal decisions in court (whereas currently, visa applicants cannot appeal rejections in Estonia).
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].