The posted worker is distinguished from the employee on a business trip mostly by the circumstance that the posted worker always has a particular receiver or service recipient, for example, the parent company or subsidiary of the group. Corresponding terms are defined in § 3 of the Working Conditions of Employees Posted to Estonia Act and § 21 of the Employment Contracts Act.
The posted worker
A person is considered to be a posted worker if:
- the place of performance of work is Estonia, not the foreign country where the employee normally works in;
- employment is temporary, it means the employee does not move to Estonia to live and work permanently;
- the employee has a particular receiver in Estonia or the service recipient, for example, the parent or subsidiary company of the group.
The employee on a business trip
A person is considered to be an employee on a business trip if the employer sends the employee to Estonia from the place of employment they have agreed on to perform work duties. This generally lasts for no more than 30 consecutive calendar days.
The employee and the employer may also agree upon a longer time period for the business trip.
Overview of payroll taxation
Figure 1 (the employer is a foreign company) and figure 2 (the employer is an Estonian company or a non-resident acting as an employer in Estonia or a non-resident's permanent establishment in Estonia) give an overview of the taxation of the salary and wages.
Abbreviation in the figures
A1 – the certificate concerning the social security legislation applicable to the holder of the certificate
Figure 1. Taxation of the salary and wages of an employee on a business trip (non-resident) and a posted worker (non-resident) when the employer is a foreign company (non-resident)
* Natural persons who are residents of a member state of the European Economic Area (Member States of the EU, Iceland, Liechtenstein, Norway) have the right to basic exemption, similarly to a resident of Estonia. Non-residents must submit their certificate of residency to the Estonian Tax and Customs Board and an application to the employer for the implementation of the Estonian basic exemption (up to 700 euros per month in 2026).
Mitteresidendist füüsilisel isikul, kes on EMP liikmesriigi resident, on õigus Eesti maksuvaba tulu kohaldamiseks esitada tuludeklaratsioon ning sellega saada tagasi Eestis enamkinnipeetud tulumaks, kui väljamakse tegemisel seda õigust ei kasutatud.
The terms “temporary agency work” and “user undertaking” are explained in the Employment Contracts Act and the guidance documents of the Labour Inspectorate. The Income Tax Act does not give any special meaning to these terms in tax law.
Last updated: 15.12.2025
