#WallessTaxCookies | Estonia’s €8,400 tax allowance: a treat for EEA earners
2026 04 16
Starting from January 2026, Estonia has introduced a €8,400 annual non-taxable minimum (that’s €700 per month) for everyone – regardless of annual income.
Even better: this applies not only to Estonian tax residents, but also to individuals who are tax residents of other EEA countries (EU + Iceland, Liechtenstein and Norway) earning income from Estonia – for example interest or board member fees.
- Practical tip: The €700 monthly allowance can be applied immediately. However, since the law provides for an €8,400 annual exemption, one-off larger payments may still be subject to Estonian withholding tax. The good news? Based on the annual Estonian tax return, overpaid income tax can be refunded.
Keep in mind: income must still be declared in your home country and will most likely be taxed there as well.
Cross-border taxation – sometimes sweeter than expected.
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