Estonian labour relations
Get more information about laws, regulations, agreements and contracts that are at the base of Estonian labour relations.
business presence in estonia
Be closer to all the action in Estonia’s innovative startup ecosystem. Boost your ability to have a corporate tax residency or business bank account in Estonia.
Access a busy, supportive startup ecosystem
Find over 110 organisations in Estonia, who are eager to support ambitious individuals and startups
Discover Estonia’s startup ecosystemA highly skilled workforce
Estonia is 15th globally in human capital potential maximisation with its simple and straightforward labour legislation.
Read about the labour marketAccess an Estonian business banking account
Connection to Estonia is advantageous (sometimes required) to open a business account with a bank in Estonia.
How to access business bankingMove your corporate tax residency to Estonia
Setting up an office or hiring local employees can help you take full advantage of the Estonian tax system.
Read more about cross-border taxationWho to contact?
Office/store
To set up an office as a non-resident, speak to a service provider or contact: International House of Estonia, Tallinn Enterprise Department, or County Development Centers.
Co-working hubs
A co-working hub is a flexible and cost-effective alternative to an office. Lift99, Spring Hub, Technopolis, and Workland have many options. Find more here.
Large scale investment
Want to relocate your business entity – factory, IT or R&D center, SSC, etc. to Estonia? Contact the Estonian Investment Agency to learn more.
Who to contact?
Office/store
To set up an office as a non-resident, speak to a service provider or contact: International House of Estonia, Tallinn Enterprise Department, or County Development Centers.
Co-working hubs
A co-working hub is a flexible and cost-effective alternative to an office. Lift99, Spring Hub, Technopolis, and Workland have many options. Find more here.
Large scale investment
Want to relocate your business entity – factory, IT or R&D center, SSC, etc. to Estonia? Contact the Estonian Investment Agency to learn more.
Labor laws
Registration
Salary and taxes
Relocating employee to Estonia
An Estonian resident
Estonian labour laws are quite liberal, but principle of protection applies over employee
Obligation to register new employees with the Estonian Tax Board
- Payroll taxes payable in Estonia
- Salaries subject to Estonian minimum wage
- Must report fringe benefits
Not applicable
A resident of EEA or Switzerland
Check labour laws in employee’s country of residence
Your company may need to register as a foreign employer in employee’s country of residence
- Income and social tax payable in employee’s country of residence
- No tax reporting or payment obligations in Estonia
- Can work in Estonia for up to 3 months before registering address
- Payroll obligations will depend on where employee is a tax resident
- Has a right to temporary residence of 5 years extendable
A resident of a third country
Check labour laws in employee’s country of residence
Your company may need to register as a foreign employer in employee’s country of residence
- Income and social tax payable in employee’s country of residence
- No tax reporting or payment obligations in Estonia
- Need to obtain a legal right to temporarily stay in or reside in Estonia
- Once employee has legal right to stay, requirement to register short-term employment
- Work permit quotas apply for many third countries
Labor laws
An Estonian resident
Estonian labour laws are quite liberal, but principle of protection applies over employee
A resident of EEA or Switzerland
Check labour laws in employee’s country of residence
A resident of a third country
Check labour laws in employee’s country of residence
Registration
An Estonian resident
Obligation to register new employees with the Estonian Tax Board
A resident of EEA or Switzerland
Your company may need to register as a foreign employer in employee’s country of residence
A resident of a third country
Your company may need to register as a foreign employer in employee’s country of residence
Salary and taxes
An Estonian resident
- Payroll taxes payable in Estonia
- Salaries subject to Estonian minimum wage
- Must report fringe benefits
A resident of EEA or Switzerland
- Income and social tax payable in employee’s country of residence
- No tax reporting or payment obligations in Estonia
A resident of a third country
- Income and social tax payable in employee’s country of residence
- No tax reporting or payment obligations in Estonia
Relocating employee to Estonia
An Estonian resident
Not applicable
A resident of EEA or Switzerland
- Can work in Estonia for up to 3 months before registering address
- Payroll obligations will depend on where employee is a tax resident
- Has a right to temporary residence of 5 years extendable
A resident of a third country
- Need to obtain a legal right to temporarily stay in or reside in Estonia
- Once employee has legal right to stay, requirement to register short-term employment
- Work permit quotas apply for many third countries
Further resources for hiring employees or relocating talent to Estonia
Average salaries
Find out about the average salaries in Estonia, the probation period, and other salary related technicalities.
Registering employees
Remember to register your employees at the latest by the moment when the employee starts the work. You can do this in the Tax and Customs Board online portal.
Recruit and relocate
Consider hiring in Estonia, where there is a highly skilled, English-speaking workforce, particularly in the information technology and professional services sectors. Plus there is low unionisation, simple and straightforward labour legislation, and easy hiring processes.
Recruit great local talent from: MeetFrank, CV Online, Euraxess Estonia, CV Keskus, LinkedIn.
Relocate foreign talent with the help of trusted partners such as Jobbatical or MoveMyTalent. Find more recruitment and relocation service providers on our Marketplace.
Learn about cross-border taxes
Wondering where e-residents pay corporate taxes? Or how to take advantage of a competitive tax system?
Learn about taxes in Estonia
Discover the features which make Estonia a low-risk, cost-effective place for e-residents to start a business.
Get personalized tax help
Find 50+ verified tax experts with experience in helping e-residents understand their tax obligations.
