Income & Income Tax
Take out your salary in Estonia and keep more of your money!
In Estonia, the taxable income from work is done with a fixed percentage (not a progressive taxation). Currently (income year 2012), you pay21% income tax (regardless of income level) on the salary you take out in Estonia. The government of Estonia has also announced an upcoming reduction of income tax to 20% in 2015.
Income in Estonia
We help you get started with the to take out your salary in Estonia. What is needed to be able to take a salary and paying taxes in Estonia are:
- An Estonian company that pays your salary to you (eg your own).
- Private account in a bank in Estonia.
- Estonian ID-code.
- Registered address in Estonia
The salary can then be distributed through the Internet bank or using a MasterCard linked to your personal bank account.
The package that we provide in order to take a salary and have a personal bank account is:
Budget Package PLUS, Package 2 and Privat Package.
Note that you must declare your Estonian income in your declaration in the country that you are registrarted as a Tax payer. To awoid this you can have your registration of residence in Estonia, and only pay tax in Estonia.
Income Tax - only 21%
Swedish example (compere with your own country): A person with a monthly salary of 50 000 SEK gross earn about 10 000 SEK per month net, just by taking their wages in Estonia rather than in Sweden. This because of the low income tax. The social security contributions in Estonia are comparable to those in Sweden, 33%. In order to pay tax in Estonia, you as an EU citizen need an Estonian ID-code and a registered address in Estonia.
As a EU citizen, you can with our help, apply for and obtain an Estonian ID-code. You of course, keep your present citizenship and passport.
We provide the registered address and the paperwork required to enable this.
The cost for a registered address and the necessary administration are included in the package prizes for Budget Package PLUS, Package 2 and Private Package.
How should I declare my income?
If you choose to register as residing in Estonia, you declare your income only in Estonia. To just pay tax in Estonia, you need to write you out from your present tax registration.
NOTE! This does not affect your citizenship and passports!
If you continue to be registrated in the country that you now are registered as a tax payer, you are required to declare the income that you may have in Estonia in your income declaration.
Example:
- If you take out a gross salary of 50 000 SEK / month by your company in Estonia and pay 21% income tax, then the income tax will be 12 000 SEK / month. If you had taken out a gross salary of 50 000 SEK / month in Sweden by a Swedish company had income tax been approximately 22 000 SEK / month (this is between Swedish and Estonian income tax, check your income tax in your country).
The difference between the Estonian and your countrys income tax, the Tax Board of your country has the right to claim from you.
NOTE! This applies only if you continue to be registered for income tax in other country.
Because the Estonian Tax NOT automatically informs or have any online system that informs other EU Tax Agency that you are taking out income in Estonia, you are personally responsible to inform the Tax Agency in your country if you have income in Estonia.
NOTE! This applies only if you continue to be registered for income tax in other country.
What do I have to do myself?
We help you with the entire process. We arrange transportation, filling out necessary forms (in Estonian), interpreters, and check that everything is correct.
You only need to bring with you:
