Estonia Company Registration: 0% Corporate Tax on Retained Profit
Estonia doesn't tax company profit when it's earned. It taxes it when it leaves the company. Keep the money in the business, reinvest it or build a reserve, and the corporate tax bill stays at zero, year after year. You don't need to live in Estonia or travel there to set one up.
Why Estonia: 0% tax on the profit you keep
Most countries tax company profit every year, whether you take it out or not. Estonia works differently. Corporate income tax is only charged when profit is distributed. Profit that stays in the company, or is reinvested in the business, carries 0% corporate tax, with no time limit.
When you do pay out a dividend, the company pays 22% on the gross amount. That's calculated as 22/78 of the net dividend. The 2% "security tax" on company profit that was planned for 2026 was cancelled in 2025, so the 22% rate stands.
| Example: €100,000 profit | Keep or reinvest it | Pay it all out |
|---|---|---|
| Estonian corporate tax | €0 | €22,000 |
| Left for you or the business | €100,000 in the company | €78,000 dividend to you |
| When tax is due | Never, while it stays in the company | In the month the dividend is paid |
This suits companies that grow by reinvesting, build up a cash reserve, or hold investments and pay out only now and then. A few rules keep the system honest. Non-business expenses, gifts and hidden profit distributions are taxed just like a dividend, and fringe benefits for staff are taxed separately. The accounts still have to be kept properly, and an annual report is filed every year.
What's included for €2,500
- Company registration: your private limited company (OÜ) registered in the Estonian Business Register.
- Authorised contact person for 1 year: Estonian law requires one when the management board lives outside Estonia. Our founder Mardo Soo takes this role.
- Virtual office address for 1 year: the company's legal address in Estonia, where official mail is received.
- 1 director / shareholder / beneficial owner: the package covers one person in all three roles.
- 1 power of attorney: you sign it once and we handle the registration for you. Each extra power of attorney costs €250.
Optional extras
| Item | Price | What it's for |
|---|---|---|
| Share capital | €100 | Paid into your company's own account. It isn't a fee and stays company money. |
| Local director, 1 year | €4,000 | Mardo Soo acts as director of your company in Estonia. Includes bank account opening consulting. |
| Real office with a lease contract | €200 / month | For when you need an actual office rather than a registered address. |
| Extra power of attorney | €250 each | For example, to let someone act for the company at a bank or with another authority. |
How registration works
- Call or WhatsApp us. We agree the company name, what it will do, and who owns it.
- Identity check. You send your passport and proof of address, as Estonian anti-money-laundering rules require.
- Sign the power of attorney. We send it ready to sign and tell you exactly how to sign it from your country.
- We register the OÜ. Once the documents are signed, the Business Register usually registers a new company within a few working days.
- Your company is live. You get the registry code and the company documents, and the contact person and legal address are in place for the first year.
- Bank account and capital. The €100 share capital is paid into the company's account. With the local director option, we also prepare and guide the bank account application with you.
Is an Estonian company right for you?
A good fit if you:
- Reinvest profit into growth rather than paying it all out every year
- Want a simple EU company that trades in euros with customers across Europe and beyond
- Run an online or service business that doesn't depend on local premises
- Want to hold investments or build a reserve inside the company
Think twice if you:
- Plan to pay out all the profit every year. The 22% then applies anyway, so the 0% advantage mostly disappears.
- Live in a country that taxes foreign companies owned by its residents. Many countries have controlled-foreign-company rules, or tax a company where it is really managed.
Your CEO contact: Mardo Soo, from Estonia
Mardo Soo
Founder & CEO, Consulting24 · Estonian
Mardo Soo is Estonian and founded Consulting24, which is itself an Estonian company: X24Consulting OÜ, Business Register code 16971898, Poordi 3-63, 10156 Tallinn. Over eight years he has advised on and helped set up 200+ companies in 15+ countries, many of them fintech and financial-services firms. He knows the Estonian system as a local, from the Business Register to the tax rules.
He doesn't hand your company to a middleman. Mardo is personally the contact person in Estonia for the companies we register. On the local director option he is your company's director. You deal with the person whose name is on your company's file. Connect on LinkedIn · About us
FAQ - Estonia company registration
Is corporate tax in Estonia really 0%?
Yes, on profit that stays in the company. An Estonian company pays no corporate income tax on profit it keeps or reinvests, however long it keeps it. Tax is due only when profit leaves the company. Dividends are taxed at 22% (22/78 of the net amount paid out), and non-business expenses, gifts and hidden profit distributions are taxed the same way.
Do I need to live in Estonia or travel there?
No. You sign one power of attorney and we register the company for you. Because the management board will live outside Estonia, the law requires a contact person and a legal address in Estonia. Both are included in the €2,500 package for the first year.
Do I need e-Residency?
Not to register the company. We file it under your power of attorney. After registration, reports and filings are signed digitally, so e-Residency or a local director makes day-to-day administration easier. Our local director option covers that.
How much share capital does an Estonian company need?
The legal minimum is one cent, but we register companies with €100 of share capital. It isn't a fee: it's paid into your own company's bank account and stays company money.
Can you open a bank account for the company?
Bank account opening consulting is included in the local director option (€4,000 for one year). Banks make their own decisions and are careful with companies whose owners live abroad. So we prepare the application with you and approach the banks and payment institutions that fit your business.
What is not included in the €2,500?
These cost extra:
- The €100 share capital
- Bookkeeping and the annual report (every Estonian company files one each year)
- A local director
- A real office
- Extra powers of attorney (€250 each)
Everything else you need to register the company and keep it legally reachable for the first year is included.
Register your Estonian company
€2,500 all-in for registration, contact person and legal address. Tell us about your business and we'll get it started.
Contact us → 💬 +372 58155779Sources: Estonian Tax and Customs Board: income and social taxes · Estonian e-Business Register · ERR News: Estonia scraps defense tax