• Maximum daily allowance for the first 15 days of an assignments abroad increased to 50 euros. Any money paid over the maximum is now regarded as salary (used to be considered a fringe benefit).
  • Income from rent defined in the Income Tax Act as rent, consideration for constitution of right of superficies and tolerating a real encumbrance, and other consideration received for  tolerating a restriction on the use of an object arising from law or transaction.
  • Income tax incentive related to natural person’s apartment rent: 20% is deducted in the tax return from the rent received on the basis of a residential lease contract to cover the expenses related to rental.
  • Tax exempt income:
   2016: 2040 € per year 170 € per month
   2017: 2160 € per year 180 € per month
   2018: 2280 €per year 190 €per month
   2019: 2460 €per year 205 € per month

  • Additional tax exempt income of pensions increased to 2700 € per year, up to 225 € per month; a pension of 395 € is tax free.
  • The income tax incentive on hobby training expenses for adults was abolished.
  • The expenses for obtaining a driving licence for motor vehicles of category AM; A, A1, A2; B, B1; are no longer considered training expenses.
  • Limit of gifts and donations applied to natural persons was abolished, from now these are considered equal to training expenses and housing loan interest from the viewpoint of deductions, to which only the general limits (50% of taxable income, but not more than 1200 euros) are applied.
  • The total amount of the deduction of housing loan interest, training expenses, charitable gifts and donations from income was reduced to 1200 euros.



  • The list of persons to whom goods or services can be sold at 0% tax, i.e. with a VAT exemption certificate, was extended.
  • Goods and services can be sold to an EU institution located in Estonia when the total cost of the goods or service without VAT is at least 53 euros. This amount can be smaller in the case of fuel, utility expenses and communication services.
  • The goods exported in the case of tax-free sales to natural persons can be inspected and the tax-free certificate can be approved by the customs or the Police and Border Guard Board.
  • The VAT rate on accommodation services and accommodation services with breakfast will increase from 9% to 14% from 2017 onwards.



  • The tax rate will be 32.5% (12.5%) from 1 January 2017.

For a more detailed overview, go to our Estonian webpage.