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Withholding tax in Estonia 2026
Estonia withholds nothing on dividends and generally nothing on interest paid abroad; the working rates are 10% on royalties, artistic and sports performances and Estonian professional services, and 22% on salaries, directors' fees and rents.
Withholding is final — non-residents taxed at source file nothing further.
At a glance
- top rate
- 22% (employment, directors, rents)
- entry band
- 0% on dividends and most interest
- tax year basis
- Withheld when paid
- filing deadline
- Final; assessed income declared by 30 April, paid by 1 October
- residency basis
- Estonian-source payments to non-residents
- regime flag
- Property-rich share sales (50%+ real estate, 10%+ stake) taxed by assessment
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Dividends — settled by the company's distribution tax |
| 0% | — | Interest, with narrow exceptions |
| 10% | Gross | Royalties (including equipment-use payments), artistic and sports income, Estonian professional-service fees |
| 22% | Gross | Employment in Estonia, directors' fees, rents and non-exempt pensions |
| 22% | Gain, by assessment | Estonian real estate sales and 10%+ stakes in property-rich entities |
Thresholds & allowances
- EEA parityResident-style deductions
European Economic Area (EEA) residents filing in Estonia can claim the exemption and deductions on Estonian income
Residency
Residency trigger
Payers withhold at source and the tax is final; other Estonian income is assessed at the same 22% by a 30 April return.
Non-resident treatment
Treaties frequently cut the 10% royalty rate; losses on taxable property-rich share sales can offset later such gains.
Notes
- Non-resident crew wages on Estonian-linked international transport are taxed at 22% (0% for qualifying ships).
- The 20% rental-dwelling deduction extends to non-resident landlords declaring Estonian dwelling rent.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — apply from 2030; Estonia has not yet transposed them.
FAQ
What does Estonia withhold on payments abroad?
0% on dividends and most interest, 10% on royalties and performers' or professional fees, 22% on salaries, directors' fees and rents — final in each case.
Do non-residents pay tax on Estonian share sales?
Usually not — only stakes of 10%+ in entities that were over 50% Estonian real estate (now or in the prior 2 years) are taxed, at 22% by assessment.
Figures: tax year 2026, compiled from public sources. Not tax advice.