Estonia - UK Double Tax Treaty

Estonia - UK Double Tax Treaty

Updated on Saturday 04th March 2023

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Estonia and UK have entered into a double tax treaty in May 1994. Through this convention the two countries avoid the double taxation thus ensuring advantageous conditions for the development of commercial bonds. Investors in UK and in Estonia have privileged taxation conditions for the income or for capital gains, one of the main purposes of the treaty being to offset the amount of taxes charged on investors. Our law firm in Estonia can provide consultancy regarding the double taxation treaty concluded between UK and Estonia.

The reduction of taxes according to the tax convention UK-Estonia

The beneficiaries of the Estonia - UK tax convention are residents of one of the two countries, individuals as well as companies. According to the provisions of the double tax treaty signed between the UK and Estonia, any income received from interest, dividends, royalties, and capital gains is taxed at a reduced rate. The capital revenues referred to by the convention, include income from properties, salaries and pensions. 
Since one of the main purposes of the tax convention is to prevent double taxation, the treaty provides as well several methods through which some of the tax amounts charged on a company can be returned to the investor. Through the credit method, a tax charged in the source country can be returned in the resident country upon an application for a credit in value of the respective amount of the tax. The investor has the option to reinvest the money thus returned in the business. 
The provisions of the double tax treaty UK-Estonia refer not only to the income tax, but also to the corporation tax and the real estate tax.
You can call on our attorneys in Estonia for a wide range of legal services such as tax planning or counseling regarding the taxation rules in this country. 

Advantages of the tax convention between UK and Estonia

A benefic effect of the double tax treaty UK-Estonia is that it provides tax exemption or tax reduction for some of the revenues of companies. The optimal tax climate insured by the convention allows the development of strong economic ties between the two countries, and the base for future partnerships. The cooperation between the two economies is thus encouraged. 
Another important advantage of the UK-Estonia tax treaty is the introduction of the return methods in order to rebalance the income which might have been overtaxed. The friendly tax conditions, the increasing transparency and safety, encourage investors in one country to extend their commercial activity in the other.
If you are a UK national interested in acquiring Estonian residence, our lawyers can help you. We can give you more details about the temporary residence permit, the rights of residence, working in Estonia, how to extend an existing permit or change its type, and much more. We can give you details about the temporary residence permit for employment, study, business, reuniting with family members, etc.
If you are an investor from UK who intends to conduct business in Estonia, you are welcome to contact our Estonian lawyers who can help you open a branch or subsidiary in this country. They can show you as well how you could benefit of the provisions of the UK-Estonia tax treaty in order to avoid double taxation of your business. 
British nationals who wish to relocate to Estonia and have other questions about personal taxation can reach out to our team. We also answer questions about residency, the permit application process, the renewal requirements, how you can apply for permanent residency and, after a certain period of time, how you can apply for citizenship in Estonia by naturalization. 
If immigration to Estonia is something that interests you, applying for a long-term residence permit is the natural step, once you have spent five successive years in the country. Our team can give you complete details prior to your application, and will provide you with information on the documents you need to submit. The decision time for the long-term residence permit is usually 3 months.