| Key Takeaways |
|---|
| Businesses in Estonia must now prove six months of actual operation in Estonia before hiring foreign talent on a residence permit. Agencies must show business activity in Estonia or the EEA; the salary guarantee requirement is removed. Only companies registered in Estonia’s Business Register can now employ foreign nationals. |
Starting January 1, 2026, Estonia will implement major changes to its immigration framework, especially targeting how foreign workers are hired by Estonian companies. These reforms aim to strengthen local labor protections, increase transparency, and encourage employment of domestic talent.
1. New Requirements for Businesses Hiring Foreign Workers
| Change | New Requirement | Current Status | Impact |
| Business Activity | Employers must prove 6 months of actual business activity in Estonia before applying for a temporary residence permit for a foreign worker. | No such proof required. | Makes it harder for new startups to hire foreign talent immediately. |
| Registration | Employers must be registered in the Estonian Business Register. | Not required currently. | Stops foreign companies from sending staff without formal Estonian presence. |
Exceptions:
- This new six-month rule does not apply to companies using short-term employment registration, which is a simpler process without the need for a residence permit.
2. Major Shift for Temporary Work Agencies
Estonia will eliminate the requirement for agencies to provide a one-month salary guarantee for each foreign worker. Instead:
| Before | After (2026) |
| Temporary work agencies had to offer a salary guarantee. | Agencies must show six months of active operations in Estonia or another EEA country. |
This change reduces financial pressure on agencies but raises questions about employee wage security.
3. Mandatory Employer Registration in Estonia
Employers (except government bodies) can only hire foreign workers if they are:
- Officially registered in the Estonian Business Register
- Compliant with labor, tax, and social security obligations
This will end the current loophole allowing non-resident employers to temporarily post employees in Estonia without fully registering.
Government’s Goals Behind These Changes
| Objective | Details |
| Equal Labor Protection | Ensure foreign workers are subject to the same tax and social protections as Estonian citizens. |
| Local Employment Focus | Push companies to invest in the local workforce before looking abroad. |
| Prevent Misuse | Close gaps that allow foreign companies to send unregistered employees into Estonia. |
Looking Ahead: Potential Visa Appeal Reform
The Estonian parliament is also considering new legislation that would allow visa applicants to appeal refusal decisions in court—a right currently not granted.
Summary
Estonia is tightening its immigration and employment regulations to:
- Ensure fair treatment of foreign workers
- Promote transparent business operations
- Encourage the hiring of local employees
If your company plans to hire foreign workers in Estonia post-2026, it’s crucial to begin building a compliant presence today.