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If you hire employees, you will have to register them with the Estonian Tax and Customs Board.
Any citizen of a state within the EEA can work in Estonia up to 270 calendar days during a 12-month period without any permit or registration. For employment longer than 270 calendar days, they will need a residence permit that is obtained upon registration. EEA citizens and Swiss citizens are treated as EU citizens in this respect. An employee from outside the EEA must seek a residence permit in order to work in Estonia.
Since 18 January 2017, there is a possibility to apply for a start-up visa. Such a visa for engagement in start-up business may be issued if the stay as an alien in Estonia is related to the foundation or development of a start-up company in Estonia.
In order to qualify for the start-up visa, the start-up company must fill out an application detailing their business and team, which will be evaluated by a Start-up Committee consisting of the members of the Estonian start-up community. In case of a positive decision, the founders will have a choice between applying for a one-year visa with the option of extending it for another year, or a permit for start-up entrepreneurship for five years.
The provisions of the Employment Contracts Act are mandatory for all employees and contain rigid rules regarding the terms, holidays, and termination of employment.
The minimum wage is regulated by law in Estonia. As of 1 January 2020, the minimum wage for full-time work is set to EUR 584 per month or EUR 3.48 per hour. The average wage is EUR 1,433 per month.
Personal income tax is 20%, calculated from the gross income and deducted from income.
Social Security Tax is 33%, calculated from the gross income and paid on top of the salary by the employer.
Unemployment Tax is calculated from the gross income, 0,8% is paid on top of the salary by the employer and 1.6% is deducted from the employee's salary.
Due dates for business tax liabilities, including taxes related to employees, can be found in the tax calendar of the Estonian Tax and Customs Board.
Fill in the legal assistance request form
Any citizen of a state within the EEA can work in Estonia up to 270 calendar days during a 12-month period without any permit or registration. For employment longer than 270 calendar days, they will need a residence permit that is obtained upon registration. EEA citizens and Swiss citizens are treated as EU citizens in this respect. An employee from outside the EEA must seek a residence permit in order to work in Estonia.
Since 18 January 2017, there is a possibility to apply for a start-up visa. Such a visa for engagement in start-up business may be issued if the stay as an alien in Estonia is related to the foundation or development of a start-up company in Estonia.
In order to qualify for the start-up visa, the start-up company must fill out an application detailing their business and team, which will be evaluated by a Start-up Committee consisting of the members of the Estonian start-up community. In case of a positive decision, the founders will have a choice between applying for a one-year visa with the option of extending it for another year, or a permit for start-up entrepreneurship for five years.
The provisions of the Employment Contracts Act are mandatory for all employees and contain rigid rules regarding the terms, holidays, and termination of employment.
The minimum wage is regulated by law in Estonia. As of 1 January 2020, the minimum wage for full-time work is set to EUR 584 per month or EUR 3.48 per hour. The average wage is EUR 1,433 per month.
Personal income tax is 20%, calculated from the gross income and deducted from income.
Social Security Tax is 33%, calculated from the gross income and paid on top of the salary by the employer.
Unemployment Tax is calculated from the gross income, 0,8% is paid on top of the salary by the employer and 1.6% is deducted from the employee's salary.
Due dates for business tax liabilities, including taxes related to employees, can be found in the tax calendar of the Estonian Tax and Customs Board.
Fill in the legal assistance request form