The Estonian government has approved significant changes related to taxes, including VAT, corporate taxes, personal income tax, among others. These tax updates in Estonia are mostly related with the increase in tax pressure on both taxpayers, individually and at a corporate level.

A summary of the tax updates in Estonia 2024-2025

  • VAT undergoes an increase for the majority of sectors:
    1. The standard VAT will increase from the current 20% to 22%. However, taxpayers can apply a 20% to all contracts signed prior to May 2023, where a 20% VAT rate was stipulated in the contract.
    2. Starting January 2025, VAT related to tourism (on accommodation) will increase from 9% to 13%.
    3. In addition, VAT on press publications will increase to 9% (from the current 5%) at the beginning of 2025.
  • In relation to CIT, the applicable rate will increase to 22% in 2024.
  • The tax on tobacco and alcohol will also experience an increase during the period 2024-2025 by 5%: the last update of this tax was in 2018. The tax on gambling will grow to 6% in 2024 and 7% in 2026.
  • In relation to the personal income tax, a “uniform basic tax exemption” will be recognized for all taxpayer’s income below 700 euros per month, as well as those with annual incomes below 8,400 euros.

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All information contained in this publication is up to date on 2023. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.