Corporate Taxation Estonia: 2026
Estonian Tax System
Estonia has one of the most competitive tax systems in the world.
Corporate income tax is 22/78 (about 28%) if profits are distributed, and 0% at all other times.
Corporations determine when their tax liability arises based on realised profits, as opposed to other countries that require pre-payment based on estimates.
The Estonian tax system is easy to engage with, having a flat structure which reduces errors, and online filings which save time and money.
Additional considerations such as entity type, size, allowable expenses, thresholds, distribution rules, and double taxation treaties may apply.
Estonia Tax Rates 2026
| Corporate Income Tax | 22/78 (28%) on distributed profit, 0% if undistributed. |
| Value Added Tax | 24% standard rate; some reduced rates may apply. |
| Social Tax | 33% of the employee’s gross salary is payable by the employer. |
| Unemployment Tax | 0.8% of the employee’s gross salary is payable by the employer. |
| Bank Levy | 18% for credit institutions. |
| Asset Tax | May apply to real estate and motor vehicles. |
Running an Estonian Company
You can form and administer an Estonian company from anywhere in the world using eResidency. This makes it easy to trade within the EU, a market of 450m people and EUR 18tn output, while benefitting from the Estonian tax system.
TrustBooks Services
Taxation is complex, and rules must be applied to your specific circumstances. TrustBooks provides a range of services to assist with tax calculations, reporting and compliance. If you are a corporation or investor, contact us for a free consultation..
