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 ↗
Jurisdictions
Estonia · OÜ
Digital administration with a sound legal foundation. An Estonian OÜ combines electronic processes with the obligations of an EU company.
Formation & price
Your GCS formation package.
€650
One-time package price · incorporation fees included
Business price excluding any applicable VAT.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
€390 / year —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, taxes on your activity, bookkeeping, financial statements, tax returns and 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.
The fixed price applies to the standard case described above. Variations and additional services are specified in a written quote before engagement.
Enquire about the Estonia packageTax & company structures
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 September 2026. Benefits depend on activity, actual management, residence and personal circumstances. Company taxation is not the shareholder’s total tax burden.
At a glance
What this company can offer.
- Online administration through e-Residency
- Digitally signed company documents
- Estonian profit tax generally arises on distribution
EUR 265
Online registration fee · OÜ
This registry fee is included in the GCS package. e-Residency and the contact person are listed in its scope; accounting is separate.E-Residency is neither residence nor tax residence. Review annual reporting, contact-person requirements and taxation where the company is managed.
Where it fits
The location must fit the plan.
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.
Scope
From context to execution.
- Review of ownership, activity, residence and countries involved.
- Agreed responsibilities, document checklist and open specialist questions.
- Coordination of company or residence documents, banking preparation and local professionals within the agreed scope.
- Document handover and a schedule of ongoing obligations.
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.
Estonian companies generally pay profit tax on distribution, currently 22/78 of the net distribution. Certain non-business payments can also trigger tax; this is not blanket tax exemption.
Annual reporting remains necessary even with little or no activity. Keep accounts, register details and beneficial-ownership information current.
Requirements & Substance
What needs to be clear first.
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.
Timing
A sequence with clear dependencies.
Document review, specialist clearance, filing and account or status decisions follow separate processes. Once the documentation and scope are clear, we agree a schedule. Authority and bank decisions cannot be guaranteed.
Ongoing Duties & Cost Drivers
The structure must work day to day.
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.
German connections
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 AO ↗Controlled 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 AStG ↗Foreign-interest reporting
Foreign businesses and shareholdings may trigger notification duties. Conditions, thresholds and deadlines need review.
Section 138(2) AO ↗Exit taxation
Departure or restrictions on German taxing rights can trigger taxation of unrealised gains on covered interests, subject to personal conditions.
Section 6 AStG ↗Remaining 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 AStG ↗Tax treaties
Residence, income, entitlement and the current treaty text determine relief. The existence of a treaty is not a blanket exemption.
Treaty status ↗This overview does not replace case-specific review by directly appointed, qualified legal and tax professionals.
Read on
Guides and terms for this country.
Formation21 September 202619 min
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.
Read the articleFormation21 September 202617 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.
Read the articleFormation21 September 202616 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.
Read the article
Terms in the glossary
Questions & Answers
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.