Estonia has the best tax system in Europe?

What expats and digital nomads should know about Estonian tax system in five easy points.

  1. Simple and Efficient: Estonia has a simple and efficient tax system that is easy to understand and comply with. The tax code is streamlined, and most tax returns can be filed online in a matter of minutes.

  2. Flat Tax: Estonia has a flat income tax rate of 20%, which is one of the lowest in Europe. This means that everyone, regardless of income level, pays the same tax rate.

  3. No Corporate Income Tax: Estonia does not have a corporate income tax. Instead, companies are only taxed on the profits they distribute as dividends. This encourages reinvestment and growth.

  4. E-Residency: Estonia's e-Residency program allows non-residents to establish and run a business in Estonia from anywhere in the world. This makes it an attractive location for entrepreneurs and small businesses.

  5. Low Tax Burden: Overall, the tax burden in Estonia is relatively low compared to other European countries. This makes it an attractive destination for businesses and individuals looking to minimize their tax liabilities.

These factors have helped Estonia's tax system become one of the best in Europe, attracting both individuals and businesses to the country. Once you move to Estonia, you´ll be positively surprised by the e-services the country has to offer and the simplicity of the tax system.