Estonia Summary Guide

Estonia Summary

Estonia achieved independence from the old Soviet Union in 1991. Situated in northeast Europe, Estonia has a large coastline on the Baltic Sea. Estonia joined the European Union in 2004 and is also a member of NATO.

Although Estonia has yet to adopt the Euro as its currency, it seems increasingly likely this will take place at some point between 2011 and 2013. The Estonian Kroon (EEK) is the existing currency.

GDP continued to grow until 2008 when it fell by 1.8% and again by 2.1% in 2009. It is projected that the economy will grow by 3% in 2010. GDP was USD25 billion in 2009 and is forecast to grow to USD26 billion in 2010. Inflation has generally been kept under control but the rate rose to 10.7% in 2008. It is generally acknowledged that Estonia’s economy will emerge from the recession in 2010.

The country has more than 40 double taxation avoidance (DTA) agreements in place at the time of writing.

Network Latest News

Estonia Chases Tax Debtors

Monday 8/8/2011

The Estonian Tax and Customs Board has announced that during August it has been successful in chasing the tax arrears of 62,534 taxpayers, cumulatively owing over EUR384m.
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UK Leads EU Tax Rate Hikes

Tuesday 12/10/2010

New research from KPMG has shown that workers in the United Kingdom are suffering more than most as a result of post-crisis tax policy, with the UK’s personal income tax rates now the fourth most punitive in Europe, up from thirteenth a year prior.
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Structural Tax Measures Would Secure Euro For Estonia: IMF

Wednesday 13/1/2010

The International Monetary Fund in its Article IV consultation with Estonia, commended the government for fiscal measures introduced to ensure that state debt remains below the Maastricht Criterion of 3% of gross domestic product in 2010, laying the foundations for Estonia’s adoption of the Euro in 2011.
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Estonia Summary Guide Contents

Estonia Summary

Estonia Summary Chart

Estonia Residence

Taxation of Business People in Estonia

Living and Doing Business in Estonia

Business Forms in Estonia

Latest Comments

Expat Brit

Hi,

I am facing a dilemma and would like to invite any reader to advise me.

I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.

In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.

However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?

If anyone has pertinent advice on these points, I’d be grateful to hear them.

TJM @ Eindhoven, NL

T. Dog

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Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

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Irish crisis - effects on small business?

Hi all,

Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.

Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...

Thanks,Kate

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Jersey vs. Malta??

Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary

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Living in France contracting to Australian company

I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD.
Do I pay tax in France or Australia or both ?
Any help or guidance would be much appreciated.France move

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