When you have a company in Estonia, you need to differentiate between you (as a person) and your company. They are different entities, even if your company is just you.

Your company, founded in Estonia, pays taxes in Estonia (unless special circumstances apply).

In Estonia, company taxes are only paid when there is profit distribution (i.e: money that leaves the company in the form of salary or dividends). Your company does not pay any tax for the money earned or reinvested in the company.

If you are a tax resident in any country, you pay personal taxes in that country for salaries, dividends, or any other income received, from your Estonian company or any other source of income. If you are not tax-resident in any country (i.e: a digital nomad or location independent entrepreneur) you don’t pay personal taxes. If in doubt about your personal situation, consult an specialist.

Read more information in this blog article.

in VAT and taxes

3 Comments

  1. Josep
    August 31, 2019 at 12:18 pm – Reply

    Hola
    Los ingresos recibidos en España des del extranjero (sueldos y dividendos de mi empresa en Estonia) tributan como “rentas obtenidas en el extranjero”. Si estos rendimientos de trabajo no superan los 22.000€ anuales (un pagador que es mi empresa en Estonia) no estaría obligado a hacer la declaración de la renta, correcto? Es todo correcto lo dicho?

    • Ignacio
      September 2, 2019 at 8:25 am – Reply

      Hola Josep, efectivamente, tributan como rentas obtenidas en el extranjero. El límite que mencionas aplica a salarios recibidos en España. Dependiendo de tu situación, puede ser diferente o tener que declarar desde el primer euro. Te recomendamos una consultoría con nuestra experta fiscal en España o que consultes con otro profesional al respecto.

  2. Zsoldos Imre
    July 5, 2020 at 10:52 am – Reply

    Dear All, I’d appreciate your kind advise:
    1. is there an opportunity to pay dividend prepayments earlier than the yearly dividend?
    2. The 25% tax is paid by the company or deducted from the shareholders?
    3. If the shareholder wants to gain residency in Estonia, how is it possible? That way do I understand well, that 25% of tax is not payable on dividend. Is there any minimum tax or social security payment required (or minimum salary to be paid)?
    Thank you in advance.

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