Europe · Baltics

Estonia

A genuinely excellent place to own a company — 0% tax on retained earnings, administered entirely online — and a genuinely poor place to seek a passport: 8 years of residence, a B1 Estonian exam, and you must give up your existing citizenship.

Last verified July 2026183 visa-free destinations

Tax position

Income tax (top): 22% flat — the planned rise to 24% for 2026 was cancelled by the Riigikogu in December 2025
Capital gains: no preferential rate — taxed as ordinary income at 22%
Wealth tax: none
Inheritance tax: none
Special regime: 0% corporate tax on retained and reinvested profits; 22/78 on distribution (22% of gross, 28.2% of net). The 14/86 reduced rate was abolished on 1 January 2025.
Territorial: No — worldwide income taxed
CFC rules: Yes
Exit tax: No
CRS: Participating