Estonia is one of the most digitally advanced countries in the world. You can sign your documents online and run your company from anywhere in the world.
A Unique, Fair Tax System
You’ll face 0% corporate income tax if you keep earned profits within the company or reinvest them.
Access to Online Services
Estonia is a fast-paced business environment, thanks to its ease-of-access and vast array of online services.
An EU Member State
InCorpora can help you become a member of the EU business community. You’ll be able to conduct business in the Schengen Area with ease!
A Truly Paperless Society
No one likes paperwork. In Estonia, almost every administrative service can be carried out online, in an instant.
Move Your Business and Tax Residency to Estonia
The Estonian corporate tax system has no corporate income tax, at least not in the traditional sense. Corporate income tax is only payable if profits are distributed, like the distribution of dividends, for example. Because of this, thousands of companies and entrepreneurs are taking advantage of the Estonian tax system to facilitate international holding and trading, investment, financing, royalty and property holding. It’s just simple maths if you think about it!
Put simply, an Estonian company is one of the best on-shore tax deferral investment vehicles for compound interest and its quite unique in its ability to help business owners preserve and accumulate wealth.
If you plan to build up your wealth while taking full advantage of the power of compound interest — an Estonian company is, likely, exactly what you’re after. Whether your focus is on gaining income by investing in riskier assets or holding on to what you already have, there’s no place more excellent than Estonia.
Incorporating in Estonia — 13 amazing advantages:
1. trading and investing — there’s no corporate income tax, until profit distribution;
2. private equity holding — participation exemption on qualified foreign dividend income;
3. Foreign Permanent Establishment, participation exemption on distributions;
4. there’s no withholding of taxes on outbound dividends and interest;
5. there’s no withholding of tax on royalties (if EU and 25% shareholding);
6. the country is a member of the EU and OECD, so it is covered by all EU Directives;
7. since 2011, the national currency is the highly-stable euro (€);
8. shelf companies are available for immediate use;
9. tax residence certificates are ready within just two days;
10. there are no thin capitalization rules;
11. it has a super-simple tax system;
12. it has excellent tax deferral and planning opportunities;
13. it boasts cost-efficient administration and maintenance.
How does a corporate tax system work, anyway?
From the 1st January 2000, resident companies and permanent establishments of foreign entities (including branches) have only been subject to income tax with respect to all distributed profits. As a result, the timing of tax payment can vary:
If you receive dividends from your company or permanent establishment, you must pay corporate income tax in Estonia. The rate is 20%, which is calculated as 20/80 from the net payment you receive. For example, if you receive €80 net as a dividend, €20 of that must be paid as corporate income tax. In Estonia, no withholding tax or personal income tax is added.
The transfer of assets of a permanent establishment to its head office is also treated as a distribution. Although at the point of distribution of trading income, a flat corporate tax rate of 20%, in some instances 14% (14/86 on net amount) applies for legal entities on regularly distributed profits.
It’s quite easy, if you don’t take any money out of your company, you won’t pay any corporate income tax in Estonia!
You can choose to keep the earnings within your company’s account or invest in different asset classes indefinitely, and you won’t have to pay a cent of income tax on it.
You only need to start paying the relevant taxes when you begin taking money out of the company, i.e. taking out dividends or distributing profits in some other way. Eventually, if you take money out of the business, you’ll still only pay a flat tax rate of just 20%.
Foreign qualified dividends are also not taxed in Estonia. The holding threshold for participation exemption is 10%. Estonia has tax treaties with more than 60 different countries, and all the EU directives are available, which creates excellent opportunities for corporate structuring.
To build wealth, it’s essential to start early and be consistent. You also need to choose the location to manage your wealth and hold your assets. As we’ve made quite clear up to now, we strongly advise that this location is Estonia! We’d be delighted to assist you with setting up and maintaining your entity and can support you in corporate administration, accounting, giving the necessary local support, legal and tax compliance.
Move Your Tax Residency to Estonia
Tax residency is becoming an increasingly popular topic. People are now more mobile than ever, often having family, friends, businesses, properties, financial assets and wealth scattered all over the planet. As people begin to get older, it’s also essential to start thinking of things like inheritance and estate planning. This leads many to ponder where best to make themselves tax resident, to be able to enjoy the winter of their lives as comfortably as possible.
As you probably already know, nationality and tax residency are separate matters. You could, for example, be a German national but be a tax resident in Switzerland, Malta, Monaco or Estonia. This is an increasingly appealing concept for a growing number of wealthy Europeans. And, if it comes with significant tax advantages, then why not?!
What about other taxes?
Estonian tax residents are not charged personal income tax on foreign dividends if income tax has already been paid on the share of profit based on which the dividends are paid, or if income tax on the dividends has been withheld abroad. Inheritance tax, wealth or net worth taxes are unknown in Estonia. This makes Estonia super-attractive for foreign, high net-worth individuals contemplating relocating their tax residency into a more friendly tax environment.
We would be delighted to assist you in setting up your tax residency in Estonia, provide the necessary local support, and expert advice on legal and tax compliance.
We are authorised by the Estonian FIU (Financial Intelligence Unit). Companies registered and administered with InCorpora are regarded as trustworthy and compliant. We can assist you with the formation, administration and accounting of Estonian companies, as well as accounting for other EU companies.
Every business is different and carries many different requirements. We take a personal approach to each of our clients and offer them a service that matches their desired outcomes.
Range of Services
We offer an extensive range of B2B services. Company registration, banking, corporate services. Check our services listed below and find out how we can help you.
A Highly Professional Team
Our dedicated team has a strong background in providing a wide-range of services. We meticulously take care of each of our client’s specific requirements.
Most of InCorpora’s services can be provided remotely, meaning that you don’t need to be in Estonia to get things done.
Although starting a company in Estonia is relatively easy, there are a few necessary steps that need to be taken. Depending on your specific needs, we can help you through this process, with minimal effort on your part. We’ll help you get your new company up and running in no time! There’s not much use in starting a company if you don’t have access to an EU bank account – a process which can, at times, be a little tricky to achieve. Let us help you with: Once you have established your Estonian company you’ll need to stay on top of a number of cumbersome day-to-day activities. Don’t worry – we can take care of all of that for you, allowing you to focus on building up and managing your actual business. Our corporate services capabilities include: We’re able to provide you with a top-tier accounting service and will handle your bookkeeping with utmost precision. From starting-up, to fully running your company’s accounting responsibilities, our service offering includes – but is not limited to – the following: If required, then we can help you find a suitable auditor. We can assist with Company Liquidation procedures.
Although starting a company in Estonia is relatively easy, there are a few necessary steps that need to be taken. Depending on your specific needs, we can help you through this process, with minimal effort on your part. We’ll help you get your new company up and running in no time!
There’s not much use in starting a company if you don’t have access to an EU bank account – a process which can, at times, be a little tricky to achieve.
Let us help you with:
Once you have established your Estonian company you’ll need to stay on top of a number of cumbersome day-to-day activities. Don’t worry – we can take care of all of that for you, allowing you to focus on building up and managing your actual business.
Our corporate services capabilities include:
We’re able to provide you with a top-tier accounting service and will handle your bookkeeping with utmost precision.
From starting-up, to fully running your company’s accounting responsibilities, our service offering includes – but is not limited to – the following:
If required, then we can help you find a suitable auditor.
We can assist with Company Liquidation procedures.
IMPORTANT NOTICE: Beware of the concept of economic substance! Please make sure that you obtain proper tax and legal advice, both in your country of tax residence and abroad, before setting up and operating a foreign corporate structure. Take good care not to fall for low cost company registration factories promoting cheap and simple company registration with automatized service, and location-independent tax exempt environment. Proper tax and legal advice along with substance and tax compliance is the key in international corporate structuring. We provide you with initial and ongoing advice on setting up and running your corporate structure in line with international standards, economic substance requirements and tax compliance.