A natural person is a resident in Estonia if at least one of the following conditions is met:
- his or her place of residence is in Estonia
- he or she stays in Estonia for at least 183 days over the course of a period of 12 consecutive calendar months
- he or she is an Estonian diplomat who is in foreign service.
In other cases, a natural person is a non-resident.
A person is considered a resident from the date of his or her arrival in Estonia.
If a person is simultaneously a resident in Estonia and in another contracting state of the convention for the avoidance of double taxation and the prevention of fiscal evasion (hereinafter the tax treaty), the double residency of the person is avoidable under the tax treaty.
If the residency determined under the tax treaty differs from the residency determined by law, the provisions of the tax treaty shall apply.
A natural person has to notify the Tax and Customs Board of the creation or change of the residency on Form R. Based on the information provided, the Estonian Tax and Customs Board will determine whether the person is a resident or non-resident in Estonia. The form also helps to resolve potential cases of double residency in the application of the tax treaty.
A Latvian resident comes to Estonia every day to work for an Estonian company. Due to his work, he stays in Estonia for more than 183 days. Thus, under the Estonian Income Tax Act, he is a resident of Estonia, but because of his place of residence in Latvia, he is also considered a resident of Latvia. Pursuant to Article 4 of the tax treaty concluded between Estonia and Latvia, the residence in Latvia becomes decisive for determining his residency, and therefore the person is considered a non-resident in Estonia.
Last updated: 07.09.2022