Estonia

Tax residency

Under Section 6(1) of the Estonian Income Tax Act (Tulumaksuseadus), a natural person is an Estonian tax resident if their place of residence is in Estonia or if they stay in Estonia for at least 183 days within 12 consecutive calendar months.

Thus, Estonian domestic tax residence may arise either through a place of residence in Estonia or through the 183-day presence test. The 183-day test uses a rolling 12-month period rather than the calendar year.

• Place of residence (elukoht): the place of residence is the place where the individual permanently or primarily lives. It may simultaneously exist in more than one place. A place is considered permanent where it is established for permanent use rather than for a short-term purpose. The dwelling may be owned, rented or otherwise available for permanent dwelling. In determining the place of residence, EMTA considers whether the individual has made preparations or efforts to make the place permanently available for themselves. Ownership of property in Estonia alone does not establish tax residence, and a dwelling rented out to other persons is not treated as the individual’s place of residence.
• 183-day presence test (viibimine): a person is resident if they stay in Estonia for at least 183 days within 12 consecutive calendar months. Residency under this test is deemed to begin on the first day of arrival in the qualifying period.

Day counting

• Place of residence: no day-count threshold applies. The question is whether the individual has established a permanent or primary place of residence in Estonia.
• 183-day presence test: Estonian law provides that each day of presence, including a part of a day, is counted towards the 183-day threshold. Accordingly, the day of arrival and the day of departure are each counted as a full day. The threshold is assessed over 12 consecutive calendar months.

Tax consequences

The Estonian tax year is a calendar year. Estonian tax residents are generally subject to tax on worldwide income, while non-residents are subject only to Estonian-source income. Immigration residence status does not, by itself, determine Estonian tax residency.

Migration / EU residence

EU/EEA and Swiss citizens may reside in Estonia for up to three months without registering their right of residence. Those intending to stay longer must register their place of residence under the applicable rules. Third-country nationals may stay in Estonia for short stays of up to 90 days in any 180-day period, subject to applicable visa requirements. Stays exceeding 90 days generally require a long-stay visa or residence authorisation. Immigration residence status does not, by itself, determine Estonian tax residency.

Orientation references

• Estonian Income Tax Act (Tulumaksuseadus), Section 6 (tax residency)
• Estonian Tax and Customs Board (EMTA), determining residency and day-counting guidance
• Estonian immigration / EU residence framework