Tallinn has been named the world’s best city for start-ups in the prestigious Monocle magazine’s 2025 Quality of Life Survey. Making its debut in the rankings, Estonia’s capital received top marks for its advanced digital infrastructure, supportive start-up ecosystem, low cost of living, and inclusive international community, writes Startup Estonia.
According to Monocle, Tallinn offers an ideal environment for early-stage businesses, thanks in part to Estonia’s pioneering e-residency programme and streamlined bureaucracy. “Estonia is a very entrepreneurial country, and there’s less red tape,” said Martin Sahlen, founder of Alvin.ai, who recently relocated to Tallinn. “The digital infrastructure is excellent—you can set up and manage a company in minutes.”
“It’s a city where international founders are instantly welcomed. You don’t need intermediaries or layers of bureaucracy to connect with people—everything happens directly and efficiently.”
Irina Tokareva, community manager at Lift99
The magazine also praised the clear structure of government support for start-ups. Startup Estonia plays a key role in connecting founders with networks, funding, and know-how. “Many of Estonia’s new start-ups have spun out of major tech firms like Skype, Wise, Pipedrive, and Bolt,” noted Startup Estonia’s Mirjam Kert. “Since 2010, over €4.5 billion has been invested into Estonian start-ups—92% of it from foreign investors.”
Tallinn is affordable for startups
Beyond the business environment, Tallinn was recognized for its collaborative spirit and sense of community. “It’s a city where international founders are instantly welcomed,” said Irina Tokareva, community manager at Lift99. “You don’t need intermediaries or layers of bureaucracy to connect with people—everything happens directly and efficiently.”
FACTS ABOUT ESTONIA
#1 leader in unicorns per capita in Europe
100% of all public services are accessible online
51% of the ICT sector’s revenue is coming from international clients
1407 years of working time saved every year thanks Estonia´s digital services
Affordability is another key advantage. Office rent in Tallinn averages €22 per square metre, and a cappuccino costs around €3.60. As Monocle puts it: “Tallinn offers Nordic quality of life without the Nordic price tag. It’s a city where big ideas move fast.”
Tallinn joins a distinguished group of cities honoured by Monocle for excellence in specific areas of urban living. Other 2025 winners include Paris (best overall), Madrid (health), Athens (nightlife), and Tokyo (cleanliness).
For the full Quality of Life Survey, visit: https://monocle.com
GOOD TO KNOW
Estonian ICT companies have helped to build the most advanced digital society in the world:
- Estonians are ‘born digital,’ making them exceptionally skilled in smart and agile development.
- Estonian companies and the public sector have been building a fully digital society since the early 1990s.
- Home to 10 unicorns and producing 10 times more startups per capita than the European average, Estonia leads by example in digital integration, offering a model for other countries to enhance their digital infrastructures, and ranking #1 in Europe for digital public services.
- Estonia boasts over 10 000 ICT companies. The Estonian ICT sector benefits from a highly innovative ecosystem, supported by research institutions, a robust startup culture (Skype, Playtech, Wise, Bolt, Glia, Pipedrive, Zego, Veriff, Gelato, ID.me), and substantial government incentives, all driving the continuous flow of new technologies and solutions.
- Estonia is #5 in the EU for the proportion of ICT specialists in total employment.
- 8% ICT sector contributes to Estonia’s GDP. The annual growth rate of the Estonian ICT sector has been around 8% in recent years, outpacing the average EU growth rate of 5%. (Eurostat, 2022)
- Estonia ranks 10th globally in ICT services export as a percentage of total exports. (WTO, 2022)
- ICT services account for 30% of Estonia’s total services exports. (Bank of Estonia, 2022)
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