Temporary residence permit
The issuance of residence permits is subject to the annual immigration quota, which cannot exceed 0.1% of the Estonian permanent population in one year. This does not apply to American or Japanese applicants or to citizens applying for residency to do research or study.
StartupYou may obtain a temporary residence in Estonia, if you are starting a company with the aim of developing and launching a business model with such great, innovative and reproducible global growth potential that it will contribute substantially to Estonia's business environment. The project must be previously evaluated and approved by an expert committee of the Ministry of the Interior.
A temporary residence permit has a validity of 5 years. After that, you may renew the permit or apply for permanent residency, provided that your place of residence has been entered in the Estonian population registry, you have health insurance, permanent legal income (€ 260 / month) and an Estonian language B1 level.
After living in Estonia for 8 years, 5 of which must be through holding a permanent residency permit, you may be eligible for naturalization. To become a citizen, you must have proficiency in the Estonian language, pass an exam of the Constitution and the Citizenship Law, a permanent legal income (€260 / month) and loyalty to the Estonian state.
Estonia does not recognize dual citizenship for naturalized citizens. Anyone who is granted with Estonian citizenship by naturalization must renounce its previous nationality.
- Approval of the expert committee of the Ministry of the Interior.
- Have an actual place of residence is Estonia and register it in the Population Register.
- Have health insurance.
European Economic Area
Dual citizenship is not recognized in Estonia. To become a citizen of Estonia, you must renounce your previous nationality.
- One passport-size photo
- Evidence of Health Insurance
- Proof of income
- Business Plan
- Investment Plan
- Original or Certified copy of Birth Certificate (if applicable)
- Original or Certified copy of Marriage Certificate (if applicable)
- Receipt of payment of fees
- Original and photocopy of passport
- Expert committee statement
- dual citizenship No
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required No
- Language skills required No
- Interview required No
- Investment Single -
- Investment Family 4 -
- Minimum annual income €1,560
- Time to citizenship 120
- Time to permanent residency 60
- Visa-free countries 181
- Financing available No
permanent residency benefits
temporary residency benefits
Its official language is Estonian, although about a third of its population is Russian-speaking. In 2011, the Euro (EUR) replaced the Estonian kroon (EEK) as its official legal tender currency. The country also stands out for its responsible public finances, being the least indebted state (9.6% of GDP) of the OECD.
Estonia is a world leader in digital governance and is one of the most digitally advanced countries. All Estonians receive a digital ID card that gives them access to around 4,000 services online, from managing their finances, registering companies, signing digital contracts, paying taxes or asking for prescriptions, and even voting. They are also pioneers in the conception and implementation of the E-Residency, a transnational digital identity card for non-residents issued and backed by the Estonian Government.
Visa Free Travel
To be a considered a tax resident in Estonia you must have a permanent residence and/or stay in the country more than 182 days in a 12-month period.
Tax residents are subject to income tax on their worldwide income at a flat rate of 20%. Non-residents pay taxes on their income accrued in Estonia.
Capital gains are considered ordinary income and taxed at the standard income tax rate. Investment income is usually taxed at normal rates. However, a tax deferment may be available under an investment account scheme where individuals can reinvest investment income and capital gains tax-free.
Domestic dividends are exempt from taxation; dividends obtained abroad are exempt provided they were taxed on source. Interest from financial institutions of the EEA are tax-exempt. Rental income and royalties are taxed as ordinary income.
On January 3rd 2019, Estonia implemented the EU-wide Anti-Tax Avoidance Directive Measures, which include new rules on controlled foreign companies (CFCs).
The V.A.T. standard rate is 20%. Reduced rates of 9% and 0% apply to certain goods and services.
Land is subject to a property tax that ranges from 0.1% to 2.5%, except for residential land. There are no transfer, inheritance and net worth taxes in Estonia.
Regarding corporate taxation, resident entities are subject to tax on their distributed profits at a 20% tax rate. Non-resident entities are subject to tax on their income accrued within Estonia.
Undistributed profits may be retained in an Estonian entity tax-free.
To learn more about the Estonian corporate legal framework, taxation and tax treaties, check out incorporations.io/estonia.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax Yes
- Transfer tax No
- Inheritance tax No
- Net worth tax No
- CFC law No
- Tax residency days 183
- Personal income tax rate 20%
- Capital Gains tax rate 20%
- Investment income tax rate 0%
- Territorial taxation No