@Don and @fshore already mentioned some things about Estonia's tax code over here:
But Estonia was off-topic there, so I thought, why not continue this discussion in a separate thread.
Corporate tax:
- No corporate tax, as long as dividends aren't paid out
- No tax exemption on capital gains, they are treated like any other kind of profit
- Salaries of Estonian tax nonresidents are not taxed in Estonia, unless the work was carried out in Estonia (could be a good option for digital nomads)
Personal tax:
- Director's fee always subject to Estonian personal income tax, no matter where you live (do you have to pay a director's fee or could it all be salary?)
- You can have an apartment in Estonia (and be registered as a resident), but won't necessarily be considered tax resident in Estonia if it's not your center of vital interest (could be a good option for digital nomads who need an address for banking/compliance)
- For Estonian tax residents, they can receive dividends free of tax, provided that the dividends have been "subject to tax" (minimum 7% or something like that)
Regarding the taxation of salaries paid by Estonian companies to tax nonresidents, my last status as of a couple years ago was that this is a grey area if you don't have a proper tax residency anywhere (perpetual traveler).
So, yes, they definitely aren't taxed in Estonia if you have a proper tax residency, but if your tax residency status is unclear (perpetual traveler), Estonia might tax you. Not sure if that has ever happened to anyone though.
Other benefits:
- Large tax treaty network
- Good reputation
Any other things people would like to share?
Non Tax Resident in Spain or France with low substance offshore Company
It costs them almost nothing to gather enough evidence to make a tax claim on you. How would they know that you have any taxable wealth or income?
www.offshorecorptalk.com
But Estonia was off-topic there, so I thought, why not continue this discussion in a separate thread.
Corporate tax:
- No corporate tax, as long as dividends aren't paid out
- No tax exemption on capital gains, they are treated like any other kind of profit
- Salaries of Estonian tax nonresidents are not taxed in Estonia, unless the work was carried out in Estonia (could be a good option for digital nomads)
Personal tax:
- Director's fee always subject to Estonian personal income tax, no matter where you live (do you have to pay a director's fee or could it all be salary?)
- You can have an apartment in Estonia (and be registered as a resident), but won't necessarily be considered tax resident in Estonia if it's not your center of vital interest (could be a good option for digital nomads who need an address for banking/compliance)
- For Estonian tax residents, they can receive dividends free of tax, provided that the dividends have been "subject to tax" (minimum 7% or something like that)
Regarding the taxation of salaries paid by Estonian companies to tax nonresidents, my last status as of a couple years ago was that this is a grey area if you don't have a proper tax residency anywhere (perpetual traveler).
So, yes, they definitely aren't taxed in Estonia if you have a proper tax residency, but if your tax residency status is unclear (perpetual traveler), Estonia might tax you. Not sure if that has ever happened to anyone though.
Other benefits:
- Large tax treaty network
- Good reputation
Any other things people would like to share?