Europe · EUR
Estonia
Reviewed 2026-06-21
Top income tax
22%
Self-employed SS
Yes
VAT
24%
Capital gains
22%
Exit tax
No
Nomad visa
Yes
65
/ 100
Tax efficiency41
Ease to enter92
Ease to exit81
Cost of living74
Internet18
English100
Estonia applies a flat 22% personal income tax on the worldwide income of residents, with no municipal income tax and no wealth, inheritance, or gift taxes. Its corporate system taxes only distributed profits at 22%, so reinvested company earnings stay untaxed, and there is no withholding tax on outbound dividends. The country pairs a digital nomad visa and a startup visa with the e-Residency program, making company formation and remote administration unusually fast for solopreneurs.
Personal income tax
Income tax structureFlat
Top income tax rate22%
Entry income tax rate22%
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate1.6%
Employer SS rate33.8%
Indirect & other taxes
VAT standard rate24%
Capital gains rate22%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate22%
WHT on dividends0%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$4,860
Entrepreneur visaYes
Ease of setup5 / 5
Lifestyle
Cost of living index52.7
Internet speed85 Mbps
English proficiencyHigh
Civil liberties95
Sources
- Estonian Tax and Customs Board (EMTA) — Tax rates (income tax, social tax, unemployment, VAT)
- EY — Significant tax changes in Estonia in 2025-2026 (22% PIT/CIT confirmed, 24% VAT)
- PwC Worldwide Tax Summaries — Estonia, Corporate taxes on corporate income
- Estonian Tax and Customs Board (EMTA) — Exit income tax (§54-5 Income Tax Act, company-only)
- e-Residency (Republic of Estonia) — Digital Nomad Visa (EUR 4,500 net/month)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.