Tax residency

Tax residency is the link between a person or company and the country that taxes it as a resident. That country usually taxes its residents on their worldwide income.

For people, each country sets its own tests. Common ones are having a permanent home there, the number of days spent there, and where your personal and economic ties are. For companies, a country may look at where the company is incorporated or where it is managed (its place of effective management). Under Estonian law, a company established in Estonia is resident in Estonia for tax purposes. Another country may also treat it as resident if it is managed there, and where a tax treaty decides residency differently from Estonian law, the treaty applies.

When two countries both treat someone as resident, a tax treaty between them may contain tie-breaker rules.

The e-Residency programme states that e-Residency does not affect your personal tax residency. Read Does e-Residency make me tax-resident in Estonia? and run the fit check.