The income tax in Estonia is calculated as per fixed rate. It amounts to 20% for any amount of incomes. However, the legislation sets the minimum that shall be exempt from recording – Euro 180 per month.
Additionally, the population of Estonia has several types of deductions to be paid to the budget of the country:
· for dividends obtained – 20%;
· to the pension fund – 20%;
· for the medical care insurance – 13%;
· for compulsory insurance – 1.4% of the average monthly salary (effective for people who are employed);
· land value taxes – to be calculated individually and paid on the annual basis;
· motor vehicle tax – depending on the engine volume and capacity, as well as on the year the vehicle manufacture.
Real estate tax is paid when purchasing a house or an apartment. The list of expenses for transaction conclusion comprises only payment for notary office services and state duty for registering a facility.
In case of purchasing real estate as a way of profitable investment, you will have to obtain a special permit. Such permits cost Euro 100.