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Business Setup and Support in Estonia PERMIT TO WORK IN ESTONIA

Fedortsov Oleksandr

Senior lawyer

E-mail

fedortsov@prikhodko.com.ua

Phone numbers

Lawyer practicing international migration. Specializes in issues of migration law - paperwork on the territory of Ukraine and the countries of the European Union (Romania, Hungary, Spain, Czech Republic).

PERMIT TO WORK IN ESTONIA

How to get a work permit in Estonia?

In Estonia, there is no such thing as a special “work permit”. You can work here if your short-term work is registered by your employer and your stay here is legal (for example, you have a D visa) or if you have a valid (temporary) residence permit for work.

Documents giving the right to work in Estonia

Depending on the type of work and your origin, there are the following employment options:

If you are a citizen of the EU (as well as Iceland, Liechtenstein, Norway, and Switzerland) you can enter Estonia without a visa
If you are an EU citizen and want to work for more than 3 months, then you just need to register as a resident in Estonia in a special population register for 3 months and also apply for an Estonian ID card
If you are not a citizen of an EU country and would like to work for a short period of up to a year, you should apply for a D visa. Before applying for a D visa, your employer must register you as a short-term worker in police and border guard of Estonia
If you do not have the citizenship of an EU country and would like to work in Estonia for a long period of more than 12 months, you need to apply for a residence permit. First, a temporary residence permit, then after 5 years you can apply for a long-term residence permit.

Therefore, you should seek advice if you have the following questions:

In what cases is a work permit not required in Estonia? You can work without a work permit in the following cases:

Only if you are a citizen of the EU and a number of other countries specified by Estonian legislation.

A requirement is established regarding the minimum monthly wage in the country: the employee must be guaranteed a wage not less than the minimum wage rate. From January 1, 2022 (the minimum hourly wage rate is 3.86 euros and the minimum monthly wage rate paid to a full-time employee is 654 euros. If the employee works in the field of health care and transports passengers or freight transportation within the state, then wages are regulated by the collective agreement.

Average monthly salary in the country in the private and public sectors: The average monthly salary in Estonia in 2022 was €1,548 (gross).

So, contact our company if you need legal advice, including questions about obtaining a work permit in Estonia

and how is it legal to work in Estonia.
how to get a work permit in Estonia?
is it necessary to have a work permit in Estonia in all cases?
what are the types of work permits?
which permission to submit documents for?
how to employ an Estonian citizen?
who can legally work in Estonia?
how to confirm the legality of entering Estonia?
what is the validity period of residence permits?
how to legally employ a citizen of Ukraine?
how to fill out an application for the employment service?

There are many job options, and therefore, to choose the most suitable one for you, you need to contact specialists. We will select the most optimal option for you.

Is there really no corporate income tax in Estonia?

Estonia applies a deferred taxation system. This means that while profits remain in the company’s accounts or are reinvested in its development, the corporate income tax rate is exactly 0%. Tax is paid only when funds are distributed in favour of the founders.

What is the current tax rate on dividends? (Does the 14% preferential rate still apply?)

The preferential 14% tax rate on dividends was completely abolished from 1 January 2025. Currently, all distributed profits (dividends) are taxed at a single rate of 22% (calculated using the 22/78 formula on the amount of the distribution).

Can I open an account with a traditional Estonian bank remotely?

No. Traditional Estonian banks require proof of a close economic connection with the country (substance) — the presence of a genuinely leased office in Tallinn and employed resident staff. For remote businesses operating through e-Residency, the optimal and reliable solution is to use licensed payment institutions (EMIs) that provide full IBAN accounts.

Is a company required to pay a salary to its director?

Estonian law does not require a company to pay a mandatory salary to its director. If you are a tax resident of another country and do not live in Estonia, you may also be exempt from paying Estonian social tax (33%) provided that social insurance coverage in your country of actual residence is confirmed.

What are the conditions for obtaining a residence permit through business?

A successfully operating business is a lawful basis for obtaining a residence permit. The legislation requires an investment of at least EUR 65,000 in the company’s share capital for shareholders, or at least EUR 16,000 if the business is registered as a sole proprietorship.

Successful cases on the topic: