Personal Taxation in Estonia

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PERSONAL TAXATION IN ESTONIA – 2019

 

Personal taxation basis:

Residents are taxed on their worldwide income

Nonresidents are taxed only on income received from Estonian sources

Tax Residence:

An individual is resident if his/her place of residence is in Estonia or if he/she stays in Estonia for at least 183 days over 12 consecutive calendar months (and will be deemed to be resident as of the date of his/her arrival in Estonia.

Estonian state public servants who are in the foreign service also are resident.

Filling status:

Joint filling is permitted if both spouses are residents or, subject certain conditions, if at least one spouse is a resident of another EU member state.

Income tax rates in Estonia

A flat 20% rate applies (The first 2040€ annually is exempt)

Social security payments in Estonia:

Social security is an employer-borne cost, except for the self-employed. The combined social and health insurance rate paid by the employer on cash and in kind (fringe benefits) employee remuneration is 33%. Employees, however, must make unemployment insurance contributions at 1.6% of taxable remuneration (i.e. monetary employment income)

Inheritance/estate tax in Estonia:

No

Net wealth/net worth tax in Estonia:

No

Compliance for individuals in Estonia:

Tax year – calendar year

Tax on employment income is withheld by the employer and remitted to the tax authorities.

The tax return must be submitted by 31 March and paid by 1 July of the following year.

If a person has declared capital gains, the deadline for any additional income tax payable is 1 October instead of 1 July.

COUNTRIESESTONIA – MOVING TO – PERSONAL TAXATION IN ESTONIA

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