The 2025 Tallinn city budget emphasizes enhancing business competitiveness and positioning the city as a hub for innovation and tourism. The circular economy development plan and the new circular economy center will bring fresh momentum to the development of circular products and services. A total of €17.8 million has been allocated for these activities and investments.

In 2025, Tallinn will take significant steps to promote entrepreneurship, tourism, and the circular economy, cementing its role as a leader in innovation and sustainable development.

Key focus areas for business and innovation include grants, collaboration, and testing environments. “To boost business competitiveness and entrepreneurial activity, we will continue providing support and advice for startups and small businesses. Tallinn is becoming an internationally attractive testing ground for new technologies and solutions in urban environments,” said Deputy Mayor Margot Roose.

To develop innovative businesses, Tallinn collaborates closely with Tehnopol Science and Business Park and supports innovation projects through programs like Test in Tallinn and Tallinnovation. “International cooperation with both businesses and other cities is a clear priority. We are also directing more resources toward integrating innovation into city services in collaboration with the private sector,” Roose added. A total of €4.9 million has been allocated for business development initiatives.

In promoting Tallinn as a tourism destination, the focus will be on the off-season and conference tourism. Efforts to enhance Tallinn’s international visibility will include targeted communication and marketing, as well as improved visitor experiences through innovations like the Tallinn Card app. Roose highlighted the importance of addressing the challenge of low tourist numbers during the off-season. “The city is increasing its budget for supporting international conferences to a record €350,000 and allocating an additional €200,000 to attract visitors from new target markets,” she explained. In total, over €2 million has been earmarked for tourism development.

The circular economy efforts will focus on sustainability and innovation in waste management. Tallinn continues to emphasize waste sorting and recycling as part of its shift toward a circular economy. The first circular economy center, opened in Kristiine district, received positive feedback, and next year €7.7 million will be invested in building a more advanced and environmentally friendly center on Punane Street in Lasnamäe. “The new center will combine a modern waste station, repair workshops, a reuse area, classrooms, and even a circular café. The construction will incorporate innovative circular economy solutions, such as a green roof and reclaimed wood for the facade,” Roose explained. A total of €4.36 million has been allocated for circular economy and waste reduction efforts.

The Tallinn City Government has submitted its proposed 2025 city budget of €1.29 billion to the City Council. The budget includes €1.03 billion for operational expenses and €250 million for investments, with total projected revenues of €1.1 billion. The full 2025 city budget proposal (in Estonian language) can be accessed here.