How to Start a Taxi Business in Estonia (2025)

Thinking about launching your own taxi business in Estonia?

You’re not alone. With ride-hailing apps booming and flexible work on the rise, more people are choosing to take the wheel—literally—and start their own transport business. Whether you’re aiming to drive part-time through a platform like Bolt or planning to build a full-fledged fleet, Estonia’s digital-first environment makes it easier than ever to get started.

That said, there are still important steps and legal boxes to tick before you hit the road. In this guide, we’ll walk you through everything you need to know—from licenses and business registration to taxes and insurance—so you can launch your taxi business with confidence.

1. Decide how you want to work

The first question to ask yourself is: what kind of taxi business do I want to run?

There are generally two options:

• Drive independently: you’ll register your own business and manage everything yourself.

• Drive through a platform: you’ll still need to register a business, but platforms like Bolt or Uber help handle pricing, payments, and customer bookings.

If you’re planning to grow into a small fleet or manage other drivers, your business structure and tax setup will look a bit different—more on that below.

2. Check if you’re eligible

To become a taxi driver in Estonia, you must:

• Be at least 18 years old

• Hold a valid Category B driver’s license

• Pass a medical exam (required for all professional drivers)

• Have a clean criminal record relevant to transport work

• Apply for a service provider card from the Estonian Transport Administration (Transpordiamet)

You can find all the details and apply online at the Transport Administration.

3. Register your business

If you’re going to offer paid transport services, you need to register as a business. Most taxi drivers in Estonia choose one of the following:

• Sole proprietor (FIE): simple setup, ideal if you plan to work alone.

• Private limited company (OÜ): better choice if you want to grow or hire other drivers.

You’ll need to register through Estonia’s Company Registration Portal. You can do this fully online with your ID card or Mobile ID.

When registering, choose the business activity code (EMTAK) 49321 – Taxi operation.

4. Prepare your vehicle

Whether you own, lease, or rent your vehicle, it must meet certain legal standards to be used as a taxi. That includes:

• Passing the annual technical inspection

• Displaying a roof sign and fare information clearly

• Having a taximeter (unless you work exclusively through a ride-hailing app)

• Registering the vehicle with the Transport Administration as a taxi vehicle

If you’re driving through a platform like Bolt, some equipment (like a taximeter) may not be needed—but you still have to follow the official registration steps.

5. Apply for a taxi license

Taxi licenses are issued by local municipalities. If you plan to operate in Tallinn, you’ll need to apply through the Tallinn Transport Department.

Typical requirements include:

• Your business registration certificate

• Proof your vehicle meets taxi standards

• Valid driver’s license and ID

• Service provider card

• Calibration proof if using a taximeter

Check with your local government office or visit Tallinn’s official website for the application process.

6. Understand your tax options

As a taxi operator, you’ll need to choose how your income is taxed. The main options are:

• Standard income tax (20%): you can deduct business expenses like fuel, maintenance, or insurance.

• Flat-rate tax: simpler, but you won’t be able to deduct expenses. Available if you don’t exceed €250,000 in annual income.

• VAT registration: required if your turnover exceeds €40,000 per year.

If you’re not sure which is best, a tax advisor or accountant can help. You can also explore your options through the Estonian Tax and Customs Board.

7. Social and health insurance

As a self-employed person, you’re responsible for your own social and health contributions. This means registering with the Estonian Tax Board and paying:

• Social tax: covers pension and benefits.

• Health insurance: gives you access to the public healthcare system.

If you’re just starting out, you might be eligible for reduced social tax contributions in your first 24 months of business.

You’ll need to fill out either the ZUS ZUA form (for full-time drivers) or ZUS ZZA form (if you’re doing this on the side). You can find up-to-date information on the Estonian Tax and Customs Board website.

8. Consider joining a platform

Working with Bolt, Uber or another app can make things easier. They’ll help with things like ride pricing, payments, and customer management—but you still need to:

• Register your business

• Have a licensed vehicle

• Get the proper permits

Most platforms will guide you through their onboarding process and help you get your documents in order. Visit their individual websites for the latest information.

Bonus tips for success

• Hire an accountant: tracking income and taxes easier can be tricky, especially when starting a new business. To make sure everything runs smoothly, counting on a professional to help you might be the best bet.

• Offer invoices: especially if you’re driving independently, as many corporate clients will ask for them.

• Protect yourself with insurance: motor insurance is required by law, but consider extra cover like casco or accident protection. Cachet offers flexible insurance tailored for gig drivers, with pricing based on how much you actually drive.

Quick checklist to get started

• Choose your business model (solo or platform)

• Register your business (FIE or OÜ)

• Apply for your service provider card

• Register and equip your vehicle

• Apply for a taxi license locally

• Choose your tax and insurance setup

• Decide whether to work independently or with a platform

Need a partner along the way?

At Cachet, we help taxi drivers and platform partners navigate the complexities of insurance, fleet management, and admin work. Whether you’re just getting started or scaling up, we’re here to support you with tools, insights, and flexible insurance that fits your schedule. Get in touch and let’s make your business grow!