Cross-border taxation and board member fees
When a person or an activity crosses a border, two tax systems may claim a share. We work out which one applies and what it costs.
From €120/month · Fully remote, no visit to Estonia needed
The price is a starting point, not a quote. The written offer confirms your final price.
Who this is for
- Estonian companies with non-resident board members
- Companies employing remote staff outside Estonia
- Founders who moved country but kept the Estonian company
- Companies engaging contractors across the EU
Estonian companies with board members, employees or contractors abroad face questions that purely local bookkeeping does not. Which country taxes a board member fee paid to someone living abroad? Are social contributions due in Estonia or where the person lives? Is an A1 certificate needed? Has the company's work abroad created a permanent establishment, a taxable presence that owes corporate tax there?
Mistakes here can be costly and often come to light years later. That is why we assess it before the payments start.
What is included
Board member fee analysis
Where the fee is taxable, at what rate, and what the Estonian declaration must show.
Non-resident payment handling
Tax withheld from the payment, the correct annex of the TSD (the monthly payroll tax return) and treaty relief where it applies.
Permanent establishment review
An assessment of whether your activity abroad creates a taxable presence there.
Double tax treaty application
A tax treaty decides which country may tax an income. We check which treaty applies, what relief it gives and what documents you need to claim it.
Social security coordination
Whether contributions are due in Estonia or elsewhere, and applications for the A1 certificate, which shows the country whose social security covers the person.
Contractor or employee review
Whether your foreign contractors could be treated as employees, and what that would cost if so.
How it works
Your email and a sentence about what you need is enough to start. If you also answer a few optional questions, our first reply will already include a price.
Map the people and places
Who is paid, where they live, where they work.
Analysis
A written assessment of the Estonian position and the possible tax abroad.
Implementation
Payments, tax returns and documents set up correctly.
Ongoing
Handled monthly as part of your payroll service.
Frequently asked questions
Is a board member fee taxed in Estonia if the board member lives abroad?
Often yes, at least in part. A board member fee paid by an Estonian company generally counts as Estonian income, and many treaties allow Estonia to tax it. The country where the person lives may also tax it, with relief for the Estonian tax.
What is an A1 certificate?
A document confirming which country's social security system a person is covered by when working across borders in the EU. Without it, two countries can both claim contributions.
Does hiring one remote person abroad create a permanent establishment?
Not always, but it can. This is more likely if the person signs contracts for the company, or if their work is central to the business. It needs assessing on the facts.
This page is for general information. For a better answer, get in touch and receive a personal recommendation.
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