Budgetary impact of highly qualified foreign employees’ work in Estonia

In this study, we estimated the budgetary impact of the work of highly qualified foreign specialists’ work in Estonia. We focused on managers, professionals and technicians in ICT as well as professionals and mid-level specialists in life sciences and engineering. In 2019, 2819 professionals in these occupations were employed in Estonia.

As budgetary impact, we considered first the direct effects consisting of labour taxes (income and social tax). In addition, we considered indirect effects due to foreign professionals spending part of their income in Estonia, thereby generating income to local companies and their employees. Using a general equilibrium model, we estimate the total direct and indirect revenue related to foreign professionals’ working in Estonia at €74.5 million in 2019.

The study was carried out in cooperation with the Praxis Centre for Policy Research.

Report (in Estonian)