ECONOMY

Estonia is a part of one of the fastest growing economic regions in Europe. The country is located at the heart of the Baltic Sea Region, Europe's fastest growing market of more than 90 million people. This region is one of the most diverse and rewarding markets in Europe as it spans over the well-developed economies of Scandinavia and Northern Germany, the rapidly expanding economies of the Baltic States and Poland, and the vast potential markets of Northwest Russia. The Estonian economy is considered to be liberal and innovative. IT is one of the most popular areas of business and also "the thing" to study. The use of IT has infiltrated services as well as the industrial sector and has greatly changed the way things are done nowadays. The main trend is towards simplification, innovation and customer-friendliness. The fact that companies do not have to pay income tax for re-invested profits is considered to be an effective method for enhancing entrepreneurship and for the promotion of innovation and new business solutions. Income tax must be paid only on profits that are paid out to shareholders.