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The economic value of international students and alumni in Estonia

In the academic year 2020/2021, current and past international students contributed a total of EUR 16 million in labour taxes to the Estonian economy. International students amount to over 10% of the total number of students in Estonia and around half of them work along their studies. A statement by Statistics Estonia highlighted how international students mainly work in information and communication and education sectors, as well as in start-ups.

The tax paid by international students consisted of almost EUR 8 million of social security contributions, and of around EUR 3.6 million in income taxes. Statistics Estonia reports that international students mainly work in information and communication and education sectors, as well as in start-ups but that they are more vulnerable in the labour market in comparison with local students, with their contracts being less secure and their number of jobs worked being higher.

While international student mobility continues to be affected by the pandemic, the trend for Estonia looks quite positive. According to Study in Estonia, the number of international students enrolled in Estonian higher education increased by 20% in 2021/22, when compared to the last academic year. In 2020, when leading destinations such as Canada and the US lost close to 20% of their total international student populations and Australia lost still more, Estonia saw just a -5% drop in degree-seeking foreign students in the country, and even milder contraction in 2021 (-3%) (ICEF Monitor). 

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