Estonia OÜ
Tax-free in the middle of Europe

Why Estonia

• Good construct for freelancers with German (EU) customers

• Easy to manage and set up

• Low tax burden

• Salary payment possible

• Limitation of Liability

• Suitable as a “money box”.

​

This is how Estonia OÜ works

Profit remaining in the company is not taxed, which is why an Estonia OÜ is an excellent investment vehicle.

A salary can be paid out tax-free if you only work operationally, e.g. as a developer or SEO. The person should  have a tax residence in a country with territorial tax.

​

Advice on starting a businessg an Estonia OÜ

We offer comprehensive advice on setting up an Estonia OÜ. This advice deals with the necessary questions and guides you through the process of setting up a foreign company in general and Estonia OÜ in particular. After the consultation, you will receive access to the exclusive Steuerfrei.co community where you can exchange ideas with like-minded people from our network.
The costs for the entire consultation process are a flat rate of €1,200.

​

​

​

​

​

​

Reasons for Estonia

With the digital e-residency, Estonia offers EU citizens an exciting opportunity to set up a company and thus minimize the tax and duty burden in a legally secure manner. This article will provide you with all the information why you should set up an Estonia OÜ and how to do it.

Although many are traveling around the world as perpetual travelers or digital nomads without a place of residence, they still have business customers in Germany and Europe as freelancers. These customers usually need a 'real invoice' which the responsible tax office accepts without any problems. With OÜ, Estonia offers a real company with a tax number in the euro area. Every tax office will accept your invoices to your customers with an Estonia OÜ without any problems.

We can set up an Estonia OÜ completely remotely and also manage it later.

Estonia OÜ for tax purposes

From a tax perspective, an Estonian OÜ works slightly differently than a German company. Distributed monthly profits over €1,000 are taxed at 20%. For example, on a distribution of €2,000, exactly €200 in taxes are due. Profits remaining in the company are not taxed, which is why an Estonia OÜ is ideal as an investment vehicle and “savings bank”.

On top of that, you can pay out a tax-free salary from the company if you do significant operational work - which applies to freelancers and makes Estonia OÜ ideal for freelancers.

If the private tax residence is then chosen cleverly, e.g. In a country with territorial taxation, or if you do not allow any private tax liability to arise (use with caution, a pro forma tax residence is helpful), you can operate an Estonian OÜ at low cost and with a low tax burden.

​

Bank account

Every company needs a business account so that a distinction can be made between the money of the company as a separate legal entity and the money of the partner. Customers from the SEPA area usually request that the money be transferred to a real account in euros, otherwise they fear problems with tax deductibility.

By founding an Estonia OÜ, we can also organize a bank account with a debit card if desired. 

​