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What restrictions on the balance sheet structure should I know while operating my Estonian company?

There are no thin capitalization rules in Estonia. However, there is a rule that net assets of the company cannot be less than 50% of the share capital of the company.

Such a situation may occur if, for example, you are financing your company in a start-up phase via shareholder loans and the accrued interest is eating up the equity.

Authorities check whether the filed annual report of the company is in compliance with this rule. The company usually has time until the filing of the next annual report to solve this issue.