Europe
Estonia: tax at a glance
A flat 22% personal income tax, paired with a distinctive corporate model that taxes only distributed profits. Reinvested earnings are taxed at 0%. There is no wealth tax and no inheritance tax.
Ways to relocate to Estonia
The residency and citizenship routes that lead here, weighed against the tax picture above.
e-Residency
Business & founder
DNV
Digital nomad
Start-up Visa
Business & founder
Business Residence Permit
Business & founder
Estonian Citizenship
Citizenship by naturalisation
0% Retained Earnings
Tax regime
The taxes
- Personal income (top)
- 22%A flat 22%, raised from 20% in 2025. There are no progressive brackets.
- Corporate income
- 22% on distributed profits (22/78). Retained or reinvested profits are taxed at 0%.
- Capital gains
- 22%, taxed as ordinary income
- VAT / Kaibemaks (VAT)
- 24%
- Dividends (WHT)
- 0% at the individual level, since CIT is paid at the company level. Regularly-distributed 14/86 dividends to individuals carry a 7% rate.
- Interest (WHT)
- 0%
- Royalties (WHT)
- 10%
- Social security (employee)
- 1.6% unemployment insurance, plus an optional 2% pension pillar
- Social security (employer)
- 33% social tax plus 0.8% unemployment insurance
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Land tax only, at about 0.1-1.0% of land value. Buildings are untaxed.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
0% corporate tax on retained and reinvested profits. Distributions are taxed at 22/78, which works out to 22% of gross and 28.2% of net. The reduced 14/86 rate was abolished on 1 January 2025.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.