Estonia, a tech-savvy and forward-thinking country, has become a popular destination for digital nomads, expats, and location-independent workers. If you're considering making Estonia your tax home, follow these steps to obtain tax residency.
Step 1: Determine Eligibility
To qualify for tax residency in Estonia, you must either stay in Estonia for at least 183 days over a 12-month period or establish a permanent home in the country. This means you need to have a place where you live regularly.
Step 2: Register Your Address
Once eligible, you need to register your address with the local government. This is done by submitting a notice of residence to the Population Register. You can do this online through the eesti.ee portal or in person at a local government office.
Step 3: Obtain an Estonian Personal Identification Code (ID code)
You will need to obtain an Estonian personal identification code (isikukood). This can be done at the same time as registering your address or by visiting the local government office. The ID code is crucial for all administrative processes in Estonia.
Step 4: Open a Bank Account
Opening an Estonian bank account is necessary for managing your finances within the country. To open a bank account, you will need your ID code and proof of address.
Step 5: Submit a Tax Residency Application
After fulfilling the above requirements, you must formally apply for tax residency. This involves submitting a tax residency application to the Estonian Tax and Customs Board (Maksu- ja Tolliamet). The application will be assessed based on your physical presence and ties to Estonia.
Step 6: Await Confirmation
Once your application is submitted, you will need to wait for confirmation from the Estonian Tax and Customs Board. If approved, you will receive a certificate of tax residency, officially recognizing you as a tax resident of Estonia.
Legal References
- Estonian Income Tax Act (Tulumaksuseadus)
- Population Register Act (Rahvastikuregistri seadus)
- Estonian Tax and Customs Board guidelines
Useful Links
