Estonia
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 1 | 100 |
| Corporate Taxes | 3 | 99.07 |
| Individual Taxes | 1 | 100 |
| Consumption Taxes | 9 | 80.33 |
| Property Taxes | 1 | 100 |
| Crossborder Taxes | 15 | 80.58 |
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