Can my country of residence ask me to pay company taxes there?

If your company was constituted in Estonia, there’s generally no reason why your country of residents should claim that you have to pay taxes there, unless one of the following circumstances kicks in:

  • You have an office in your country of residence;
  • You live in a CFC country and you’re not an EU citizen.

If your registered office is in a country outside of Estonia, that country can claim taxes from your business. This isn’t much of an issue, as we can give you a registered address here in Estonia.

CFC countries, however, can also claim taxes if the majority of the board lives in another country, and this applies even if you’re the only member of the board. In this case your local government could potentially claim that you must pay taxes there.

Almost all EU countries are CFC, but according to the European regulation on tax avoidance updated in 2020, EU citizens are exempt from such obligation. Furthermore, even if you live in an extra-EU country, there might be an agreement in place, so you should check your

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