
German Citizens Opening a Business in Estonia: Overview
Explore the process for German entrepreneurs establishing businesses in Estonia through e-Residency in 2026.
The exact change
Tax is triggered only when profits are distributed as dividends, at 20 percent.
Tax is triggered only when profits are distributed as dividends, at 22 percent from 2025 onward (raised from the historic 20 percent; the former 14 percent reduced rate for regular distributions was abolished in the same reform, and a planned further increase to 24 percent was cancelled).
Suggested change
Corrected the Estonia distribution tax framing, which was stale, and updated the e-Residency application fee from EUR 120 to EUR 150.
Why this is better
The Estonian distribution tax rate was stated using the stale pre-2025 20 percent figure without noting the increase to 22 percent, the abolition of the 14 percent reduced rate, and the cancelled further increase to 24 percent.
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