--- title: "Estonia tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/estonia/tax/ lang: en updated: 2026-10-12 --- # Estonia tax Tax residence: At least 183 days in 12 consecutive calendar months. No special regime for new residents in our records. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - At least 183 days in 12 consecutive calendar months · Alternative to having a permanent or primary place of residence in Estonia. - Tax residency starts on arrival and counts from the first day of the 12-month period. A person arriving in Estonia can ask the Tax and Customs Board to record residency on form R. Residence under a tax treaty with another country can override it. - If an e-resident receives a residence permit and moves to Estonia, they may become a tax resident. ## Standard rules and foreign-source income Standard rules ### Personal income tax, basic exemption and residency (2026) 22% tax **Details** - On: Residents: worldwide (including foreign-source) income (employment, business, capital) - Who: Tax resident: place of residence in Estonia - Limit: €700/mo ≈ $780 Flat 22% income tax on residents worldwide (including foreign-source) income; EUR 700 (≈ $780) per month basic exemption; non-residents taxed on Estonian-source income only. (sources 1, 2, 3) #### Taxed on Residents: worldwide (including foreign-source) income (employment, business, capital); non-residents: income received in Estonia. #### Who it applies to - Tax resident: place of residence in Estonia, or staying at least 183 days in 12 consecutive calendar months. #### Exclusions - Income of non-residents from outside Estonia is not taxed; a residence under a tax treaty with another country can make the person a non-resident. #### Limits - EUR 700 a month (≈ $780) · Basic exemption from 1 Jan 2026 (EUR 8,400 (≈ $9,380) per year; EUR 776 (≈ $870) per month at pensionable age), no longer income-dependent, applied by one payer only. #### Days in the country - At least 183 days in 12 consecutive calendar months · Alternative to having a permanent or primary place of residence in Estonia. #### Tax residence Tax residency starts on arrival and counts from the first day of the 12-month period. A person arriving in Estonia can ask the Tax and Customs Board to record residency on form R. Residence under a tax treaty with another country can override it. #### Visas Tax residency is separate from visa or permit status. #### Other taxes Social tax 33% (employer; minimum monthly base EUR 886 (≈ $990) in 2026); unemployment insurance 1.6% employee and 0.8% employer; funded pension 2%, 4% or 6% (default 2%); VAT 24% standard, 13%, 9%, 0%. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) Standard rules ### Corporate income tax on distributed profits (2026) 22% tax **Details** - On: Profit distributions (dividends and similar) by Estonian companies - Who: Estonian company paying out dividends Corporate income tax 22/78 on distributed profits; lower 14/86 rate on regular dividends abolished from 1 January 2025. (source 1) #### Taxed on Profit distributions (dividends and similar) by Estonian companies (22/78 gross-up). #### Who it applies to - Estonian company paying out dividends. #### Visas Independent of visa; relevant to shareholder and start-up permit holders. #### Other taxes Social tax 33% on salaries; minimum social tax base EUR 886 (≈ $990) per month in 2026. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) Standard rules ### E-resident treated as non-resident for tax **Details** - On: Non-resident taxed only on income received in Estonia - Who: E-resident digital ID holder without a residence permit or right of residence E-residency gives a digital ID only; it is not a residence permit and does not make the holder an Estonian tax resident. (source 4) #### Taxed on Non-resident taxed only on income received in Estonia. #### Who it applies to - E-resident digital ID holder without a residence permit or right of residence. #### Exclusions - No right to live in or enter Estonia or the EU; no exemption from taxation elsewhere. #### Tax residence If an e-resident receives a residence permit and moves to Estonia, they may become a tax resident. #### Visas Not a visa or permit. #### Other taxes Withholding agent declares the income; business and property income must be returned by the e-resident. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - Social tax 33% (employer; minimum monthly base EUR 886 (≈ $990) in 2026); unemployment insurance 1.6% employee and 0.8% employer; funded pension 2%, 4% or 6% (default 2%); VAT 24% standard, 13%, 9%, 0%. - Social tax 33% on salaries; minimum social tax base EUR 886 (≈ $990) per month in 2026. - Withholding agent declares the income; business and property income must be returned by the e-resident. ## Questions people ask ### When do you become a tax resident in Estonia? At least 183 days in 12 consecutive calendar months (Alternative to having a permanent or primary place of residence in Estonia). Tax residency starts on arrival and counts from the first day of the 12-month period. ### How are Digital nomad D visa holders taxed in Estonia? No special regime in our records is tied to the Digital nomad D visa. The standard rules apply: Flat 22% income tax on residents worldwide (including foreign-source) income; EUR 700 (≈ $780) per month basic exemption; non-residents taxed on Estonian-source income only. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (4)** ## Official sources 1. [Tax rates 2024-2026](https://www.emta.ee/en/private-client/taxes-and-payment/declaration-income/tax-rates) · Estonian Tax and Customs Board · checked 2026-10-12 2. [Calculation of basic exemption](https://www.emta.ee/en/private-client/taxes-and-payment/tax-incentives/calculation-basic-exemption) · Estonian Tax and Customs Board · checked 2026-10-11 3. [Determining residency](https://emta.ee/en/private-client/foreigner-non-resident/tax-residency/determining-residency) · Estonian Tax and Customs Board · checked 2026-10-11 4. [For e-residents](https://www.emta.ee/en/private-client/foreigner-non-resident/foreigners/e-residents) · Estonian Tax and Customs Board · checked 2026-10-11