Individual - Foreign tax relief and tax treaties

Last reviewed - 15 January 2024

Foreign tax relief

Estonian-resident taxpayers who have received foreign-source taxable income are allowed to credit foreign income tax against their Estonian income tax liability if certain conditions are met. The tax credit is generally limited to 20% of foreign taxable income and is computed separately for each foreign country.

Resident taxpayers who receive from abroad more than 75% of their taxable income qualifying for the exemption method may apply deductions only in proportion to their taxable income received from Estonia. The restriction does not apply if the taxpayer voluntarily opts for the credit method to apply in respect of the foreign-sourced income.

Tax treaties

See the Withholding taxes section in the Corporate summary for a list of countries with which Estonia has a DTT.

Totalisation agreements (social security agreements)

European Commission (EC) regulations 883/2004 and 987/2009 apply to EU member states, EEA countries, and Switzerland.

Estonia has effective social security agreements with Canada and Ukraine.