Personal Taxes?


  • I signed up (eResident) last year and I am still not sure what the tax rate is for individuals in Estonia. How does it work? I logged in and saw a tax bill for over 300 Euro, but I haven't even used the residency yet.
    Now I've opened up a company and have an accountant but he says that the government send you the taxes they think you own and you pay, or not.

    Anyone with more experience with this?

    I am happy to make pension contributions, but how many years do you need to put in to get your retirement?


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  • Dear Jeffrey,

    You may find our introduction to taxation in Estonia here: https://community.eresnetwork.eu/topic/92/estonia-107-paying-taxes

    Please see the information relevant to individuals hereunder:

    Estonian residents* pay tax on their worldwide income. An individual is an Estonian resident if his or her place of residence is in Estonia or if he or she stays in Estonia for at least 183 days over the course of 12 consecutive calendar months.

    Taxable income includes, in particular, wages, business income, rental income, pensions and scholarships, etc. Dividends received from resident companies (and non-resident companies, provided that income tax has been withheld or underlying profits have been taxed) are exempt. Non-residents pay income tax on certain income received from Estonian sources (please see “Taxation of Non-Residents” in the link provided above).

    The general flat rate of the personal income tax is 20%.

    Based on your description, it is hard to say, what caused the notice for payment of EUR 300. If you could provide more details here or in the chat of this platform, I may be able to have a better understanding of the issue.

    • An individual is an Estonian resident if his or her place of residence is in Estonia or if he or she stays in Estonia for at least 183 days over the course of 12 consecutive calendar months. This means that "residency" is a legal concept that is not dependent on e-residency - one may be a resident without being an e-resident and vice versa.

    Information posted above is intended as a general guide and does not constitute legal advice.


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