Key cross-border company taxes to know about

The aim of this page is to introduce the most important cross-border company taxes you need to know as a non-resident founder of an Estonian company.

Taxation of international businesses is an incredible complex topic and this is only an overview. Speak to an expert for more information tailored to your company and situation. The e-Residency Marketplace has a number of experienced tax consultants to support your business.

Where to pay company taxes?

Estonian companies = Estonian tax residents
Companies are registered as tax residents in Estonia by Estonian Tax & Customs Board when established.

BUT

If your company is also considered a tax resident, or your activities create a permanent establishment, in another country, your company may also have tax liabilities there.

BUT

BUT

e-Residency ≠ tax residency
E-Residency doesn’t exempt companies from dual tax residency or foreign tax liabilities.

BUT

Estonia has signed treaties with many countries to avoid double taxation, so dividends distributed in Estonia may be exempted in full from corporate income tax here.

Tax highlights for e-residents

  • e-Residency will not change your personal tax residency
  • A company registered in Estonia is automatically a tax resident in Estonia
  • Your personal residency may trigger tax residency for your company in your place of residence as well
  • Learn all about taxes in our Knowledge Base

Take the tax survey to understand the taxes you need to pay

  • For now, we have only included the most common taxes that may apply or that e-residents have asked about.
  • In this version, VAT is not included – so make sure to consult with an expert on this topic too!
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Business Guide on taxation

Want to know how to run your cross border business?

E-Residency together with PricewaterhouseCoopers has compiled a business guide to walk you through the process, focusing mostly on taxation. Download the guide to learn the key things to know about company taxes in Estonia.

Download business guide

Resources on international taxation

Learn more from our dedicated resources

Watch a video on tax basics

Example: a German resident running their OÜ from Germany

  • You conduct the core business activities of your Estonian company, i.e. consult your clients, provide services, etc, in an office in your home country of Germany 
  • The German tax authority might decide that a PE exists, meaning profits from business activities carried out through that office would be taxable in Germany
  • E-Residency does not exempt your Estonian company from these foreign tax liabilities
  • The treaty between Estonia and Germany will ensure that dividends distributed in Estonia will be exempt in full from income tax here
More examples