Estonia Tax Guide
This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
20% on capital gains
Wealth & Inheritance
Practical Notes
Digital society. e-Residency program popular for location-independent entrepreneurs.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Distributed profits tax only
- No tax on retained earnings
- e-Residency program
Data Sources
Last updated: January 2025. Always verify with official sources before making decisions.
FAQ
What is the personal income tax rate in Estonia?
Estonia has a top personal income tax rate of 22%. The tax structure is: Flat 22% on all income (increased from 20% in 2025). See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Estonia?
Estonia uses a worldwide system for foreign income. Estonian residents taxed on worldwide income; foreign tax credits available
What are the residency requirements for Estonia?
Tax residency in Estonia generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.
Is there a wealth tax in Estonia?
No, Estonia does not have a wealth tax. No wealth tax
What is the corporate tax rate in Estonia?
The corporate tax rate in Estonia is 22%. 22% on distributed profits only; retained earnings tax-deferred (increased from 20% in 2025)