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Labor Laws in Estonia

  • Annual Leave: 28 days
  • Maternity Leave: 140 days
  • Public Holidays: 12
  • Workweek: 40 hours per week

Income Tax in Estonia

Estonia has a flat personal income tax rate of 20%.

Value Added Tax (VAT) in Estonia

The standard VAT is 22%.

Social Security in Estonia

Social tax is levied on employers at a rate of 33%; employees are not liable for social tax.

No ceiling applies to the amount of salary subject to social tax. In addition, unemployment insurance and mandatory pension fund (subscription mandatory for persons born after 1983) charges are imposed on gross salary.

  • The unemployment insurance rates are 0.8% for employers and 1.6% for employees.
  • The mandatory pension fund rate is 2%, which applies only to employees.
  • Self-employed persons must pay social tax at a rate of 33% on their net business income, subject to a maximum amount of annual income equal to 10 times the sum of the minimum monthly wage for the tax year.

Work Visas Estonia

In Estonia, there are several long-stay visas available for those who wish to stay and work for more than 90 days. These visa types include:


  • A D-visa allows non-EU citizens to live and work in Estonia for up to one year. Employers must register the employee with the Estonian Police and Border Guard Board.

Temporary Residence Permit

  • For stays longer than one year, individuals can apply for a temporary residence permit, which is initially valid for up to five years.

Long-Term Residence Permit

  • After holding a temporary residence permit for five years, individuals can apply for a long-term residence permit. Applications must be submitted at least two months before the temporary residence permit expires.

European Union Blue Card

  • A permit that allows non-EU citizens to live and work in an EU country, offering a pathway to permanent residence and citizenship in the EU.

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