Estonia

Estonia's Rankings
CategoryRankScore
Overall Rank1100
Corporate Taxes399.07
Individual Taxes1100
Consumption Taxes980.33
Property Taxes1100
Crossborder Taxes1580.58

Estonia ranks 1st overall on the 2021 International Tax Competitiveness Index, the same as in 2020, and for the eighth consecutive year.


Strengths

  • Estonia's corporate income tax system only taxes distributed earnings, allowing companies to reinvest their profits tax-free.
  • The VAT applies to a broad base and has a low compliance burden.
  • Property taxes only apply to the value of land.

Weaknesses

  • Estonia has tax treaties with just 58 countries, below the OECD average (75 countries).
  • Estonia's territorial tax system is limited to European countries.
  • Estonia's thin capitalization rules are among the more stringent ones in the OECD.

Learn more about the tax system in Estonia

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