Estonian tech companies paid €323M in employment taxes in 2023

In 2023, Estonian startups and growth companies paid €323M in employment taxes, which is 18% more than in 2022, when they paid €273M. The Estonian Tax and Customs Board statistics reveal that startups contributed 65% of these taxes, while growth companies contributed the rest 35%. Among the top 10 companies that paid the most taxes were Bolt (€36,9M), money transfer service Wise (€34,9M), and provider of web-based sales CRM Pipedrive (€16,4M).

The startup sector and the information technology sector accounted for 2,2% and 6,7% of Estonia's GDP, respectively. These sectors showed a slight increase of 0,3% in their share of GDP, compared to 2022.

The number of employees in the Estonian startup sector decreased by 4% in 2023 (12,484) compared to the previous year (13,057). 69% of the employees were hired by startups and 31% by growth companies. Wise (1899 employees), Bolt (1278 employees), and Pipedrive (418 employees) created the most jobs in the startup sector.

38% of women and 62% of men worked in the startup sector. The majority of employees were aged 31- 40 (45%), and 37% were aged 21-30.  

Nearly a third of the workforce in the startup sector originated from outside Estonia with the majority of foreign employees coming from outside the European Union. 

68% of those employed in the Estonian startup sector have a university degree. 37% have a bachelor’s degree, 29% have a master’s degree, and 2% have a doctorate. Interestingly, 86% of foreign employees in the startup sector have a tertiary degree.