🇪🇪 Estonia
Estonia lets you run an EU company almost entirely online and only taxes profits when you distribute them — ideal for reinvesting founders and digital businesses.
Who it suits
Who it does not
Living
Tallinn is a safe, digital and affordable EU capital with a strong tech scene. Winters are long, but quality of life is high and most public services are available online in English.
Business
A private limited company (OÜ) can be formed remotely via e-Residency, often within a day. Estonia is famous for paperless government and a thriving startup ecosystem.
Tax
Retained and reinvested corporate profits are taxed at 0%; corporate income tax of 22% (22/78 of the net distribution) applies only when profits are distributed. A planned rise to 24% was repealed in December 2025. Standard EU VAT rules apply.
Figures are indicative and change over time. We confirm the current rules, rates and requirements for your specific situation before you commit.
How incorporation works
- How you will signDecide the signing route first. Most non-residents apply for e-Residency and sign digitally; the alternative is a notarised and apostilled power of attorney, or a visit to an Estonian notary.
- Name and structureClear the name and settle the shareholders, the management board and the share capital. Board members here carry real duties, not just a title.
- Legal address and contact personA company whose board sits abroad must have an Estonian legal address and an appointed contact person. That is a statutory requirement, not a service upsell.
- RegistrationFile with the Business Register through the e-Business Register portal. Where the signatures are digital and the capital is settled, registration is often same-day.
- Share capitalPay in the capital, or use the deferred-payment option — which is available, but restricts distributions until the capital is actually paid.
- Tax registrationRegister for VAT where turnover or EU trade requires it, and register board members and employees for payroll taxes where salaries will be paid.
- UBO registerEnter the beneficial owners in the register.
- Bank or EMI accountEstonian banks are selective with non-resident-owned companies; in practice most e-resident companies run on an EMI. The account, not the registry, decides the real timetable.
What we need from you
- An e-Residency card, or notarised and apostilled passport copies
- Proof of address for board members and beneficial owners
- A description of the business, its customers and its markets
- Two or three preferred company names, in order
- The intended legal address and contact person
- The share split between shareholders
- Source-of-funds information for the share capital
- Powers of attorney where we act on your behalf
What you end up with
- A registry card entry and registry code
- Articles of association
- Board appointments recorded on the register
- VAT number where registered
- Legal address and contact person
- Access to the Business Register and the e-filing environment
- A corporate pack EMIs and counterparties will accept
Every year after that
- An annual report to the Business Register, in Estonian — dormant companies included
- Corporate income tax returns, filed monthly whenever there is something to declare
- Payroll taxes where board members or employees are paid
- VAT returns where registered
- Keeping the beneficial-ownership data current
- Keeping the legal address and contact person in place
Common questions
Is it really 0% corporate tax?
On retained profit, yes. The tax arrives when profit leaves the company: distributions are taxed at 22/78 of the net amount. The reduced 14/86 rate for regular dividends was abolished from 2025, and the rise to 24% announced for 2026 was repealed in December 2025.
Does e-Residency give me residency?
No. It is a digital identity for signing and filing. It carries no right to live, work or travel in Estonia, and no personal tax residency.
Will I get an Estonian bank account?
Usually not. Estonian banks want a genuine connection to Estonia, and most e-resident companies run on EMIs instead. That works perfectly well — but it should be planned for, not discovered.
Do I have to pay myself a salary?
Only if you work for the company in Estonia or take board remuneration; then payroll tax applies. Many owners take distributions instead, which has its own cost. The two are decided together, not separately.
Can my company end up taxed somewhere else?
Yes, and it is the most common mistake here. If you manage the company from your home country, that country may treat it as resident there. Estonia’s deferral is only worth something if the company is genuinely run from where you say it is.
What if I file nothing?
The annual report is mandatory even for a dormant company, and the register deletes companies that persistently do not file. Getting one back is considerably harder than filing was.
Set up your company in Estonia
Tell us about your business and we will confirm whether Estonia is the right fit — and handle the full incorporation.
- A reply within one working day
- The first consultation is 30 minutes
- Confidential, no obligation