Opening a company in Estonia: locals, foreigners, freelancers and digital nomads

At a glance: OÜ with capital from 1 euro, registered online in the e-Business Register within a day for 265 euros, 0 percent corporate tax on retained profit and 22 percent on distributions plus a 2 percent security tax on profit from 2026, 24 percent VAT with registration from 40,000 euros, Digital Nomad Visa at 4,500 euros gross a month. Legal forms. Sole trader (füüsilisest isikust ettevõtja, FIE): no capital, unlimited liability, 20 euro registration. Private limited company (osaühing, OÜ): no fixed minimum since February 2023, share capital in practice 1 to 2,500 euros, paid at founding; one founder suffices, a management board of one or more natural persons anywhere in the world. Public limited company (aktsiaselts, AS): 25,000 euros with a supervisory board. No free zones. Registration. The e-Business Register (e-äriregister) run by the Centre of Registers and Information Systems (RIK): fully online with an Estonian ID, EU eID or e-Residency card, decision usually within one business day; state fee 265 euros for the fast-track company and 200 euros via a notary. A company managed from abroad must appoint a licensed contact person in Estonia (about 100 to 400 euros a year). E-Residency costs about 150 euros. Total excluding capital: roughly 300 to 1,000 euros in the first year. Taxes 2026. Corporate income tax only when profit is distributed: 22 percent of the gross amount (22/78 of the net dividend), plus the temporary security tax of 2 percent on accounting profit from 2026 to 2028. No withholding on dividends. VAT 24 percent, 13 percent on accommodation, 9 percent on books, medicines and press; registration mandatory above 40,000 euros of taxable turnover a year. Personal income tax flat 22 percent with a basic exemption of 700 euros a month; employers pay 33 percent social tax plus 0.8 percent unemployment insurance. Residents are taxed on worldwide income; no remittance regime. Freelancers and the self-employed. Register as FIE in the e-Business Register (20 euros) or, as most do, trade through an OÜ, because retained profit is untaxed. A FIE pays 22 percent income tax on net business income and 33 percent social tax on the same amount, with a minimum social tax of about 300 euros a month in 2026 (33 percent of the 910 euro minimum base). The only flat regime is the entrepreneur account (ettevõtluskonto) at LHV bank: 20 percent on receipts up to 25,000 euros a year with no deductions. VAT registration at 40,000 euros. Foreigners. 100 percent foreign ownership, no resident director or shareholder, only the contact person when the board sits abroad. E-Residency lets a founder run an OÜ remotely but gives no right to live in Estonia. Non-EU founders use the Startup Visa (Startup Committee approval, D-visa for up to a year then a residence permit for up to five years, fees about 100 and 160 euros) or the temporary residence permit for business, which needs at least 65,000 euros invested in the company. Estonian banks rarely open accounts for e-residents without local ties; most founders use EU fintech accounts. Branch of a foreign company. A branch (filiaal) is entered in the commercial register with the parent's extract and articles, the decision to open it and the branch director's details, state fee about 200 euros; it needs a contact person if managed from abroad. Taxed like an Estonian company: 22/78 on profits taken out of Estonia and the 2 percent security tax, no separate branch profits tax, VAT from 40,000 euros. A subsidiary OÜ is the usual choice. Digital nomads. Yes: the Digital Nomad Visa (DNV), a type C (up to 90 days) or type D (up to one year) visa for non-EU nationals employed abroad, owning a foreign company or freelancing mainly for foreign clients, with gross income of at least 4,500 euros a month; fees 100 euros for the D-visa and about 90 for the C-visa, spouses and children apply separately, total stay capped at 548 days in 730. Holders become tax resident after 183 days in twelve months. The visa does not convert into a residence permit. Changed recently. Income tax 20 to 22 percent and 14 percent dividend rate abolished (January 2025); VAT 22 to 24 percent (July 2025); 2 percent security tax on company profits (January 2026); universal basic exemption 700 euros a month (January 2026); minimum social tax base 910 euros (2026); Digital Nomad Visa income threshold raised to 4,500 euros (2024). Figures checked October 2026 from the e-Business Register (RIK), the Estonian Tax and Customs Board, the Police and Border Guard Board, the e-Residency programme and Big Four tax summaries; thresholds and fees change yearly. Confirm with a licensed adviser in Estonia before you file.