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Who is liable to pay Estonian Income Tax?

Residence is the single decisive factor in determining who pays income tax in Estonia. While individuals resident in Estonia are subject to tax on worldwide income, non-residents are liable to income tax on Estonian-sourced income and income received from non-resident legal entities.

Who is a Tax Resident of Estonia?

An individual is considered a resident in Estonia for tax purposes if his/her place of residence is in Estonia or he/she stays in Estonia for at least 183 days over a period of 12 consecutive calendar months.

What is the tax year end?

31st December

When are tax returns due?

Individual tax returns must be filed no later than 31 March of the year following the income year (calendar year)

Is there a personal tax allowance?

Individuals are entitled to an annual personal allowance of 6000 euros per year or up to 500 euros per month.

What are the tax rates?

Residents are taxed a flat rate of 20% on their employment income while non-residents earning some categories of income are subjected to a 10 percent income tax rate.

What are the social security rates?

The bulk of Social security payments are made by employers with employees required to pay 1.6% of income as social security and unemployment insurance contribution.

Can I be self-employed, or must I become an employee to work in Estonia?

You can be self-employed in the Estonia. Contact us for more details.