Financial statements in Estonia: requirements and rules

29.10.2025

Developing and running a business in Estonia requires compliance with a number of regulations, including document preparation and deadlines.

This process has a number of unique features, so it is recommended to use qualified specialists in this field. Accounting services in Estonia are available from a reputable company.

Requirements

There are several important parameters that financial statements in Estonia must meet. These include:

  1. The standard used to prepare this document must comply with Estonian GAAP requirements or international IFRS requirements. This depends on the specifics of the company, its field of activity, size, and the number of shares issued.
  2. The annual report is prepared in Estonian, with the euro as the settlement currency. Optionally, the document can be prepared in English.
  3. The report includes financial information on the company’s activities and key performance indicators, including the balance sheet, profit and loss statements, cash flow statements, and bank statements. If an audit is required, the audit report is also attached to the documents.
  4. The deadline for submitting reports is met. They can be monthly, quarterly, or annual; all dates are defined by law.

Rules

The reporting format depends on the type of company and its annual income. The following options are available:

  1. Small businesses and organizations with a turnover of up to €50,000 must submit a balance sheet and income statement annually.
  2. Small businesses are defined as those with up to 50 employees and an annual turnover of up to €8 million. These organizations require a balance sheet, income statement, and activity report.
  3. Other businesses require a standard documentation package, including a balance sheet, income statement, statement of changes in equity, statement of cash flows, and statement of business activities. An explanatory note is attached.

The most important rule, mandatory for all companies, organizations, and enterprises, is the filing deadline. Failure to comply with these deadlines results in fines and penalties, and more serious sanctions may follow.

An audit is mandatory if a company exceeds two of the following three criteria: the number of employees exceeds 50; Annual turnover exceeding €5 million; assets exceeding €2.5 million. The procedure is carried out by independent specialists.