Tax on distribution
Retained profits generally carry no ongoing Estonian corporate income tax. Distributions are taxed at 22/78 of the net amount; equivalent transactions can also trigger tax.
Official source: Tax on distribution
Your OÜ in Estonia. From one source.
An EU company run fully online, with e-Residency.
Price on request. Fixed quote after the structure call, in writing before you engage us.
Request a quoteBook a call- 0%on retained profits, 22/78 on distribution
Key facts.
- Taxation
- No ongoing profit tax on retained profits; 22/78 on net distributions and equivalent events.
- Substance
- Annual report even when dormant; accounting, register data and beneficial owners kept current. Minimum capital EUR 0.01.
- Director
- No residence requirement. Contact person and address included for 12 months. e-Residency is neither residence nor place of management.
- Best suited to
- For digital entrepreneurs who want to manage documents and company administration online. E-Residency opens access to Estonian digital services. It does not replace a real business organisation or an assessment of where management takes place.
As of 30 October 2026, sources at the end of the page. All countries compared
Your GCS formation package.
Price on request. Fixed quote after the structure call, in writing before you engage us. The scope depends on legal form and plan.
The structure call fee is credited.
Digital OÜ incorporation with one individual shareholder and standard articles.
Included in the package
- Formation preparation, document review and a dedicated GCS contact.
- Incorporation including government, local formation, translation and certification fees required for the standard case.
- Registry fee, support and government application fee for one e-Residency, plus business address and contact person for twelve months.
- Digital incorporation documents and a schedule of ongoing obligations.
From the second year
as quoted — Basic administration, renewing the included address and local statutory roles, plus routine register filings and related registry fees. Excluding applicable VAT; accounting provides any required financial information.
Budgeted separately
Share capital where the country requires it, taxes on your activity, bookkeeping, financial statements, tax returns and, where applicable, audits are outside the formation package. Physical offices, operational substance, nominee directors, special licences and additional entities are quoted separately. Bank-application support does not guarantee acceptance.
Potential advantages for your business.
Company form and special regime
An OÜ is an incorporated company. e-Residency provides digital access; it neither changes your personal residence nor automatically relocates management.
As of 09/2026. Benefits depend on activity, actual management, residence and personal circumstances. Company taxation is not the shareholder’s total tax burden.
What this company can offer.
- 0% on retained and reinvested profits
- On distribution 22/78 of the net amount, i.e. 22% of gross profit
- Online administration and digital signatures through e-Residency
E-Residency is neither residence nor tax residence. Review annual reporting, contact-person requirements and taxation where the company is managed.
When this country fits.
For digital entrepreneurs who want to manage documents and company administration online. E-Residency opens access to Estonian digital services. It does not replace a real business organisation or an assessment of where management takes place.
Substance and management.
Founders need suitable access for digital incorporation. Plan e-Residency issuance and costs separately. Clarify the registered address, any required licensed contact person and actual management before filing. Banks make eligibility decisions independently of e-Residency.
- Electronic incorporation of an OÜ costs EUR 265. Minimum share capital with one shareholder is EUR 0.01. Adequate operating capital and business expenses must be budgeted separately.
- E-Residency provides digital access, signatures and company administration. It grants no residence right and does not automatically alter personal tax residence.
- As long as profits stay in the OÜ, it pays 0% on them. Tax arises only on distribution: in 2026 it is 22/78 of the net distribution, i.e. 22% of the gross amount (EMTA, as of 26 March 2026). Hidden distributions and private expenses paid by the company are taxed like distributions.
- Annual reporting remains necessary even with little or no activity. Keep accounts, register details and beneficial-ownership information current.
From context to execution.
Review
Ownership, activity, residence and the countries involved.
Agreed sequence
Responsibilities, document checklist and open specialist questions.
Coordination
Company or residence documents, banking preparation and local professionals within the agreed scope.
Handover
Documents and a schedule of ongoing obligations.
Document review, specialist clearance, filing and account or status decisions follow separate processes. Authority and bank decisions cannot be guaranteed.
Ongoing duties.
Maintain accounts, annual reports, register updates and applicable tax filings. Separate distributions, remuneration and private expenses. Employees, VAT and operations in other countries may create additional duties.
From a German perspective.
An OÜ managed from Germany may incur German tax obligations. E-Residency does not relocate residence or prevent a permanent establishment or dual tax residence. Review operations, management, distributions and existing companies before incorporation.
Management & permanent establishment
Actual central management and fixed business facilities can create German tax exposure; a foreign registered address is not sufficient.
Sections 10 / 12 AOControlled foreign companies
Control, income type and actual taxation matter. The low-tax threshold is below 15% (as of 09/2026); EU/EEA substance rules require evidence.
Sections 7–13 AStGForeign-interest reporting
Foreign businesses and shareholdings may trigger notification duties. Conditions, thresholds and deadlines need review.
Section 138(2) AOExit taxation
Departure or restrictions on German taxing rights can trigger taxation of unrealised gains on covered interests, subject to personal conditions.
Section 6 AStGRemaining German interests
German nationals meeting all relevant conditions may face extended limited taxation for up to 10 years after the departure year (as of 09/2026). Preferential taxation alone is insufficient.
Section 2 AStGTax treaties
Residence, income, entitlement and the current treaty text determine relief. The existence of a treaty is not a blanket exemption.
Treaty statusThis overview does not replace case-specific review by directly appointed, qualified legal and tax professionals.
Guides and terms for this country.
Choosing a legal form abroad: LLC, Ltd, OÜ or Sp. z o.o.?
LLC, Ltd, OÜ or Sp. z o.o.: the eight forms GCS incorporates all have limited liability and differ in statutory roles and tax model. The most flexible is the US LLC: online, no presence required, no US income tax without US business activity. A comparison with table, examples and the recommendation of which form suits which way of life.
Formation30 October 202619 min
What forming abroad costs: the package, the fees and the items beside it
A formation price is only a number once it is clear what it includes. This article breaks the cost of a company abroad into government fees, statutory roles, bookkeeping and tax, shows the GCS packages for eight countries, describes the process from first conversation to handover and shows why the US LLC offers location-independent entrepreneurs the best balance of cost and flexibility.
Formation21 September 202617 min
After incorporation: annual filings, bookkeeping, registers. The compliance calendar of a company abroad
Incorporation starts the calendar. Every jurisdiction requires at least one register filing, bookkeeping and tax returns each year, many even from a dormant company. This article lists the obligations by country with deadlines and government fees, sets out what GCS takes over from year two and recommends confining the calendar to one country: the one you live in.
Formation30 October 202616 min
Terms in the glossary.
Worth knowing.
Is e-Residency a residence permit?
No. It provides digital access, not entry rights or personal tax residence.
Is one cent enough to run the company?
It is the statutory minimum with one shareholder. Operating costs, liquidity and management duties remain separate.
Are retained profits always tax-free?
Estonian profit taxation generally arises on distributions and specified other events. Foreign tax obligations may still arise.
Do online companies still need accounts?
Yes. Digital administration does not replace bookkeeping, annual reports or applicable tax returns.
Let us plan your company in Estonia.
Tell us your current residence, your business model and your timeframe. In the 15-minute introductory call we establish whether your plans fit what we do.
15 minutes, free of charge. Pick a time in the calendar. Prefer writing? Use the enquiry form