Tax rates in 2023

  • In Estonia companies do not pay corporation tax from profit.
  • The tax rate for dividends is 20% or 14% (in case the company pays dividends regularly).
  • The VAT rates are mostly 20% or in special cases 9%, 0% and tax-free.
  • For turnovers exceeding 40 000 euros companies are liable to register in the VAT registry.
  • There is a domestic reverse charge mechanism for selling metal products (the buyer does not pay the VAT to the seller).
  • The minimum wage per month for full-time work is 725 euros, i.e. 4.30 euros per hour (gross) in year 2023.
  • The withheld income tax rate is 20%. As of 1 January 2018 progressive income tax has been implemented.
  • The basic tax exemption is 654 euros if the income does not exceed 1200 euros per month.
  • The social tax rate is 33%. Minimal social tax duty is 215.85 euros per month in order to get health insurance.
  • The monthly payment of at least the minimal social tax rate ensures health insurance.
  • The unemployment insurance payment rates are 1.6% for employees and 0.8% for employers.
  • The pension fund tax is 2%

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