This support measure boosts prosperity and entrepreneurship outside Harju and Tartu regions, making rural areas in Estonia more attractive places to live.

The regional development measure “Attractive Regional Business and Living Environment” provides support for improving entrepreneurship and living conditions across Estonia, except for Harju County and the surrounding area of Tartu City. Applications are open from June 16 to October 16, 2025. Projects should align with county-level development strategies focused on cross-county cooperation, development activities, and integration of public services with local businesses.

The funding ranges from €700,000 to €3,000,000, with up to 75% covered by the grant – the remainder must come from the applicant. At least 20% of the budget must be spent on development activities, and up to 80% can go toward investments if they support the project comprehensively. Construction-related projects must be completed by September 29, 2028.

There are also several updates to the program. Minister Hendrik Johannes Terras said the changes aim to create better opportunities for implementing regional development agreements in Central and Southern Estonia. The revised framework allows more flexibility in scheduling soft projects and awards bonus points to projects that are part of those regional agreements. Additionally, the evaluation process and treatment of indirect costs have been simplified.

Minister of Public Administration Riina Solman stated: “Estonia must be an attractive place to live as a whole… We as a country must support the balanced development of Estonia and the continuation of life in rural areas.” She emphasized that nearly €84 million will be allocated through this measure to strengthen business competitiveness and create higher value-added jobs in rural areas.

Local governments and organizations have actively joined this initiative. In Lääne-Viru County, for example, Vinni municipality and the city of Rakvere teamed up with partners to launch a joint project aimed at building an industrial area and developing a business network. The 75% funding support helps construct infrastructure, foster incubators, and take initial steps toward innovation.

The result is more resilient local business networks, improved services, and a more appealing living environment, which helps slow down outmigration and encourages people to settle in these regions. Students and local workers will gain business skills, and collaboration between public and private sectors will function more efficiently.

This support scheme opens the door for rural regions to fully realize their potential. You, too, can submit a project that increases your community’s value and gives your region a fresh momentum – just align your efforts with your county’s strategy.