In Estonia, your employer is responsible for submitting taxes on your behalf, which means you’re free to spend your net salary however you see fit.
In comparison to other popular tech hubs, Tallinn has achieved the perfect balance. Tallinn offers all the opportunities of other tech hubs with more affordable cost of living and better quality of life. As a resident you’ll enjoy free public healthcare and free public transport in the capital. And should you wish to escape the city, a 20 minute drive is all it takes to find yourself by the seaside or immersed in the ethereal beauty of Estonia’s famous forests.
Source: Numbeo
labour taxes
extra taxes paid by your employer
Your employer is also obliged to pay social tax on your behalf, which is calculated as 33% of your gross salary. Once they’ve registered you with the Employment Register and paid your social tax, you’ll enjoy all the benefits of full social and health insurance coverage!
good to know
If you’re staying in Estonia for more than 183 days, you’re required to change your tax residency. But take note, the change does not happen automatically, so you (and any adult family members living with you) will want to notify the tax authorities. Here’s what to do:
- Make sure your place of residence is registered in the Estonian population register
- Complete Form R. Find the form here
- Sign it digitally and send it directly to
- Notify your employer that you’re officially an Estonian tax resident
Your tax residency will change retroactively to the day you arrived in Estonia, which will be reflected in your annual tax declaration.
If you’re living and working here for more than 183 calendar days, you’ll be considered a tax resident of Estonia. In this case, you’ll need to change your tax residency (see above). Your employer is responsible for withholding your share of taxes (33% of your gross salary) from your monthly salary. Annual tax returns from the previous year are due by 31 March. The good news is that annual tax returns are a breeze in Estonia as the declaration comes automatically pre-filled. The entire process is completed online and will take you less than 5 minutes!
