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The Estonian Government’s decision to abandon the income tax increase
Prime Minister Kristen Michal announced at the government press conference on September 18 that the planned two percentage point income tax increase scheduled to take effect at the beginning of 2026 will be abandoned.
The decision was made as part of budget negotiations. Initially, it was planned to raise the personal and corporate income tax to 24 percent.
How to change an Estonian Company name?
Changing the name of your Estonian company involves several steps and specific documentation. This guide will walk you through the entire process.
Step 1: Verify Name Availability
Before proceeding with the company name change, you must verify that the registrar will accept your proposed new name. Use the official name query tool: https://ariregister.rik.ee/eng/name_query
Can a Company Lend Money to Its Parent Company?
An Estonian company may lend money to its parent company, but this must comply with the requirements of the Commercial Code. Most importantly, the loan must not harm the company's business operations or threaten the interests of creditors.
When is Estonian Company considered “dormant”?
An Estonian company is generally considered dormant when it has been legally registered but has no business activity. This is not a specific legal status in Estonia, but rather a descriptive term
What is the fastest and easiest way to change Estonian Company shareholders?
In case the articles of association are adjusted correctly, the board member can log in to the Business Register portal (with an e-residency card) and file the changes. Usually, changes are published during one business day.
If the articles are not adjusted and board members have no right to file shareholders’ changes, then it is possible to amend the articles of association or use alternative methods.
How to change an Estonian Company's business activity in the Business Register?
The only way to change a company's business activities in the Register is through its annual report. If you want a specific activity to be seen publicly with your company registry data, you can do it by defining it in your annual report.
The activity can be amended even if the company has had no activities.
How to change Estonian Company board membership?
From a legal perspective, changing the board of directors requires submitting board member applications along with the shareholders' resolution to the Business Registry.
However, your experience and timeline will largely depend on two key factors:
1. Shareholders and board members’ digital signing capabilities.
2. Accuracy of prepared documents, particularly shareholders' resolutions.
What is the interest on late tax payments in Estonia?
Tax arrears interest rate in Estonia is 0.06% per day, which is 21,9% year.
If the tax debt is below 0.5 EUR, it is rounded as 0 EUR.
What are the tax return and tax payment deadlines for Estonian Companies?
Tax-related deadlines in Estonia are relatively short - you are given just 10 or 20 days after the end of the month.
VAT returns must be submitted and VAT paid on the 20th day of the month following the end of the month.
Income and social tax returns must be submitted and taxes paid on the 10th day of the month following the month in which the payment is made.
The annual report must be submitted at the latest 6 months after the end of the fiscal year, usually by the 30th of June.
What are the steps and timeframe for liquidating an Estonian company?
The Estonian company liquidation process typically takes at least seven months, unless the company is fully dormant or the liquidation is completed through a merger with the sole shareholder’s assets.
The standard liquidation process consists of eight distinct steps to follow.
How to change Estonian Company shareholders without a notary?
There are two ways to change the company shareholders' structure without a notary, which is often a time-consuming and bureaucratic process, especially for foreign owners.
If the shareholders/board members can sign documents digitally with an e-residency card, the full process is relatively straightforward and can often be done in a few days.
What is Estonian Company taxation upon liquidation?
The earnings of an Estonian company are not subject to taxation. However, at the time of distributing profits, a corporate income tax of 22% (22/78) (24/76, starting from January 1, 2026) must be paid.
Paid-in share capital and given loans are not taxed; they can be distributed without taxation.
When can I distribute remaining assets and profits from an Estonian Company in liquidation?
Typically, the remaining assets and/or profit of the Estonian company in liquidation are allowed to be distributed among shareholders six months after the liquidation notice is published.
Can I change the ownership of an Estonian Company with a digital signature?
Yes, there are two ways to transfer Estonian company ownership without involving a notary.
1. Simplified Share Transfer
If your private limited company meets the following criteria, you can use the simplified share transfer method:
The company's share capital is at least €10,000
The shareholders have adopted articles of association that waive the notarization requirement for share transfers
These articles of association are already registered in the Business Register
How to Obtain Criminal Records from the Estonian Criminal Records Database
If you are required to submit an official document to a third party about your punishment records or absence thereof, it is possible to apply for a signed notice from the Criminal Records Database.
To use the document in another country, a sworn translator must translate it and typically requires apostille certification or legalization, depending on the destination country's requirements.
What is the VAT reverse charge?
The fundamental principle of intra-EU VAT accounting is the destination principle – services and goods are generally taxed in the country where they are consumed.
What are the three ways to sign Estonian Company documents?
1. Digitally signing with e-residency card (or related smart ID, Mobile ID).
2. Digitally signing with EU digital ID, available currently in 18 countries.
3. Signing documents in the presence of your local notary and affixing an apostille (stamp) to the documents.
What to do with my Estonian Company if I have lost my e-residency?
If you have lost your e-residency and are unable to restore it, you can still continue operating your Estonian company. You just need to replace your Estonian ID code with your birth date (or national ID code) in the Business Register.
For that, you need to submit the registry amendments applications signed either with your EU Digital ID. if you have it, or physically, certified by your local notary.
What are the key taxation changes in Estonia from 01.07.2025?
There will be changes to Estonian tax law, effective from July 1, 2025, and from January 1, 2026.
VAT Rate Increase: 22% → 24% (Effective from 01.07.2025)
Income Tax Rate Increase: 22% → 24% (Effective from 01.01.2026)
How to increase the share capital of an Estonian Company?
Three ways to increase the share capital
Monetary Contribution
A monetary contribution made to increase share capital must be fully paid into the private limited company's bank account before submitting the application for increasing share capital to the Commercial Register.
Read and get more understanding about Estonian company related questions
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