Taxation of the salary and wages of foreigners in Estonia

Upon the taxation of the salary and wages of foreigners in Estonia, it has to be taken into account whether the employee is a posted worker or an employee on a business trip, and also how long the employee is staying in Estonia.

If there is no social tax liability in Estonia, you have to pay social security contributions abroad according to the rules of the respective country!

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, the parent company or subsidiary of the group, or the user company (in the case of leased employees).

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, the parent or subsidiary company of the group or, in the case of temporary agency work, the user company.

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.


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/E101 – 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)

Taxation of the salary and wages of non-residents

Figure 2. Taxation of the salary and wages of resident employees and non-resident employees in Estonia when 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

Taxation of the salary and wages of resident employees and non-resident employees


April 2019

11.03.2020