What taxes should I pay?

General information about taxes in Estonia
Written by Dmitri Schmidt
Updated 1 year ago

Until you distribute the profits, there is no tax.

If you decided to pay out a salary, you will incur an income tax (20%) and a social tax (33%)

If you want to pay out  dividends, the tax on them is 20% on gross profits.

If your company's income/turnover for the calendar year is more than €40,000 for transactions with the EU or Estonia, you will have the obligation to obtain an Estonian VAT number. In this case, you will have a rate of 20% or 0% applied, depending on who your client is.

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