Changes in the Aliens Act: What Foreigners and Employers in Estonia Need to Know

Estonia is taking another decisive step toward a more flexible and transparent migration system. This year, the Riigikogu has adopted extensive amendments to the Aliens Act, aiming to make employment and residence procedures more efficient, reduce bureaucracy, and strengthen control over the use of foreign labour. While some provisions entered into force on 1 May 2025, the most significant changes, particularly those related to employment, will start to apply gradually from 1 January 2026.

Stricter Standards for Employers and Temporary Work Agencies

To prevent misuse of residence permits and curb the activities of so-called “paper companies”, the amended Act introduces a six-month real-activity requirement for all employers applying for a residence permit for a foreign worker. 

From January 2026, companies will have to prove that they have been engaged in genuine economic activity in Estonia or in another European Economic Area country for at least six consecutive months before applying.

Employers can prove economic activity with their own explanations and documents such as contracts, annual reports, certificates issued by competent authorities, and tax declarations.

The same condition will apply to temporary work agencies (renditöö). From 2026, both short-term work and residence-based employment as a leased worker can only be registered if:

1. the employer is entered in the Estonian Commercial Register or another EEA business registry,
2. the employer actually engages in labour leasing, and
3. the company has had real economic activity for at least six months in Estonia or the EEA. 

Temporary agency work has long been a grey area in Estonia’s immigration framework. The rule aims to ensure that temporary agency work operates within a transparent and lawful framework. Exceptions will exist for public-sector institutions, posted workers, and for foreigners employed in teaching or research positions.

Additionally, starting from 1 January 2029, the Estonian Unemployment Insurance Fund (Töötukassa) will be required to refuse work permit applications if the annual immigration quota has already been reached and the quota for the following year has not yet been established, or if more than six months remain until the new annual quota limit is set.

Digitalisation of Migration Procedures

Another major change is the digitalisation of residence permit procedures. The law will allow foreigners to submit the data and supporting documents required for a residence-permit application electronically before filing the official application. This means that applicants can prepare their documents, upload them to the Police and Border Guard Board (PBGB) information system, and later confirm their accuracy when the full application is submitted. The pre-submitted data will be valid for six months.

Although the early submission does not replace the formal application itself, this innovation significantly reduces duplication and simplifies the process, especially for those applying from abroad. Foreigners without an Estonian digital ID may still upload their documents but will confirm their accuracy later when submitting the residence permit application in person. The goal is to bring Estonia’s migration procedures in line with the country’s broader digital-governance model, making them faster, more transparent, and more accessible. These changes shall be implemented starting from January 1st, 2028. 

New Emphasis on Language and Integration

For foreigners planning to stay in Estonia long-term, the law introduces new integration requirements. The residence permit for permanent settlement will require both completion of the adaptation programme and A2-level Estonian language proficiency. Those who have obtained their education in Estonian will be exempt, and an expert commission may grant relief if health conditions make the language exam impossible. These measures are intended to support integration and promote stronger participation of foreign residents in Estonian society.

More Efficient Data Exchange

The amendment also simplifies data exchange between state institutions. Employers will no longer need to submit the same information to the Labour Inspectorate, Unemployment Insurance Fund and the Police and Border Guard Board (PBGB). The authorities involved will instead receive the data directly from the PBGB. This change will cut redundant bureaucracy and enhance coordination between authorities overseeing employment of foreign nationals. To be fully implemented in 2029. 

Conclusions 

The changes in the Aliens Act are setting clearer and more responsible standards for everyone involved. 

Companies employing foreign staff should review their operational status and prepare documentation well in advance of the new rules taking effect. Foreigners planning to settle permanently are encouraged to begin their language learning and integration steps early.

At Legalabi, we’ll continue guiding our clients through these transitions – helping you stay compliant, confident, and ready for the future of migration in Estonia.