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!

If you’re thinking about driving a taxi in Estonia—whether full-time or to boost your income on the side—you’ll quickly face an important decision:

Should you rent a car, or use your own?

There’s no one-size-fits-all answer. It all depends on your situation, your goals, and how much risk you’re willing to take on. Let’s walk through what you need to know if you’re considering renting a car for taxi work in Estonia.

Estonia’s taxi scene: what’s the real story?

Estonia has embraced app-based mobility faster than most European countries. Back in 2017, we became the first EU country to officially legalize ride-hailing services like Bolt and Uber. Since then, the number of people working as platform drivers has grown steadily, especially in Tallinn.

But with opportunity comes responsibility. According to the Estonian Traffic Insurance Fund (LKF), app-taxi drivers are statistically involved in twice as many accidents as traditional taxi drivers. Long shifts, city traffic, and heavy reliance on GPS apps can increase risks on the road.

Bottom line: if you want to succeed—and protect your earnings—you’ll need to make smart decisions from day one. That starts with your car.

Renting a car: how it works in Estonia

If you don’t have a car that fits platform requirements—or you simply don’t want to put wear and tear on your own vehicle—renting can be a good starting point.

Several local companies offer rental options designed specifically for Bolt, Uber, and other platform drivers.

Typically, a rental package includes:

• A car that meets platform requirements
• Taxi license and vehicle card
• Maintenance and repairs
• Basic insurance

Some companies even handle the service provider card paperwork for you (which you’ll need to operate legally). If not, you can apply through the local municipality (official info here).

Expect rental costs to vary depending on the car model, insurance type, and how flexible the agreement is.

Tip: Always check if there are any mileage limits or extra charges hidden in the contract.

Is renting really worth it?

Like most things, it depends on your situation. Let’s look at the trade-offs:

Pros of renting:

• Low upfront cost: No big investment needed to get started.
• No maintenance headaches: Repairs and servicing are usually included.
• Flexibility: Easier to switch vehicles or stop driving if your plans change.
  

Cons of renting:

• Ongoing fixed costs: Rental payments add up, even during slower weeks.
• Less control: You might not get your ideal car or preferred equipment.
• Profit margin pressure: High rental costs can squeeze your earnings, especially if you’re not driving full-time.
  

If you’re planning to drive 40+ hours per week, buying your own car may be more cost-effective in the long run. But if you want to test the waters, keep things flexible, or avoid risk—renting makes a lot of sense.

What else should you budget for?

Beyond the rental fee, keep these regular costs in mind:

• Insurance: Taxi insurance premiums are higher than for private cars—because the risk is higher. The good news? Cachet offers flexible coverage for app-based drivers, based on your actual working hours.
• Fuel: How much you’ll spend depends on your car’s fuel efficiency and your driving style. Choosing a hybrid or efficient petrol engine can really make a difference.
• Platform commission: Bolt, Uber, and others typically take a 15–25% commission on each ride. Factor that into your earnings.
  

Staying on the right side of the law

In Estonia, all taxi drivers—whether traditional or app-based—must meet certain requirements:

• Valid taxi license
• Vehicle card
• Service provider card
• Compliance with the Public Transport Act (full rules here)

One thing to be aware of: While there’s no official Estonian language requirement yet, the Language Inspectorate has raised concerns about non-Estonian-speaking drivers.

Being able to communicate confidently with passengers—especially about prices and routes—can improve your ratings and avoid misunderstandings.

Final thoughts

Renting a car to work as a taxi driver in Estonia can absolutely be worth it—if you approach it with a clear plan

For part-timers, newcomers, and those who value flexibility, renting offers a low-commitment way to get started.

For full-time drivers who are in it for the long haul, buying might eventually be a smarter financial move.

Whichever path you choose, make sure you protect your time, your income, and your peace of mind with insurance that actually fits how you work. Cachet was built for exactly that.

Need smarter insurance for your app-taxi journey?
Let’s talk.

For taxi and ride-hailing drivers in Tallinn, knowing where you can legally park and wait for passengers is essential. Taxi stands are a common sight throughout the city, but they come with strict regulations on who can use them. 

Ride-hailing drivers, including those working with Bolt, Forus, or Uber, often face challenges when it comes to finding legal waiting areas, especially in high-traffic locations like the airport, port, and bus station. In this article, we break down the rules for parking at taxi stands, where ride-hailing drivers can wait, and how to avoid fines.

Who Can Use Taxi Stands?

Taxi stands in Tallinn are designated areas where licensed taxis can wait for passengers. According to local regulations, these spaces are exclusively for taxis that hold a valid operating license from the city. The key criteria for using a taxi stand are:

• The vehicle must be registered as a taxi.
• It must display the official taxi sign.

The driver must hold a valid taxi service permit.
Ride-hailing vehicles that operate via platforms like Bolt, Forus, or Uber are not allowed to park at taxi stands unless they also meet these requirements. Even if a ride-hailing driver holds a taxi license, stopping at these stands without proper markings and registration as a taxi is prohibited.

Where Can Ride-Hailing Drivers Wait for Passengers?

Ride-hailing vehicles play a crucial role in Tallinn’s transportation system, but they must follow different parking and waiting rules than traditional taxis. Here’s a guide to key locations:

Tallinn Airport

At Lennart Meri Tallinn Airport, ride-hailing cars are not allowed to wait at the taxi ranks outside the arrivals terminal. Instead, they have a dedicated waiting area in the airport’s designated ride-hailing zone. This ensures smooth traffic flow and prevents congestion. 

Tallinn Port

For ride-hailing pick-ups at the Port of Tallinn, drivers should use the designated areas near Terminal A and Terminal D. These areas have clear signage for ride-hailing services, separate from the traditional taxi ranks. Drivers waiting for passengers should not stop in taxi stands or bus stops, as parking enforcement is strict in the port area.

Tallinn Bus Station

The Tallinn Bus Station (Autobussijaam) has designated spaces for taxis near the main entrance, but ride-hailing drivers must use general parking areas or pre-arranged pick-up points. The best approach for drivers is to coordinate with passengers via the app and park in the nearest legal waiting space before the ride starts.

What Happens If You Park Illegally?

Tallinn has a well-enforced parking system, and unauthorized vehicles parked in taxi stands risk fines or even towing. The local transport authority and municipal police monitor these areas regularly, ensuring that only eligible taxis use them. 

For up-to-date information on parking fines and regulations in Tallinn, check the official Tallinn Transport Department website.

Cachet: Smarter Insurance for Taxi and Ride-Hailing Drivers

For both traditional taxi drivers and ride-hailing operators, having the right insurance is crucial. Cachet offers tailored insurance solutions designed specifically for mobility professionals. Our flexible policies take into account when and how often you drive, ensuring you only pay for the coverage you need.

Whether you’re a full-time taxi operator or a part-time ride-hailing driver, Cachet provides insurance that fits your work schedule. Plus, our data-driven approach helps reduce costs by offering fair pricing based on your driving patterns.

For more information on how Cachet can support you or your business, get in touch with our team today.