Cross-border taxation and board member fees
The moment a person or an activity crosses a border, two tax systems have an opinion. We work out which one is right and what it costs.
From €120/month · Fully remote - no visit to Estonia needed
a starting point, not a quote - the written offer confirms your 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 directors, employees or contractors abroad face questions that domestic bookkeeping never encounters: which country taxes a board member fee paid to a non-resident, whether social contributions are due in Estonia or the person's country of residence, whether an A1 certificate is needed, and whether the company's activity abroad has created a permanent establishment that owes corporate tax there.
Getting this wrong is expensive and usually discovered years later. 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
Withholding, the correct TSD annex 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
Which treaty applies, what relief it gives, and the documentation needed to claim it.
Social security coordination
Whether contributions are due in Estonia or elsewhere, and A1 certificate applications.
Contractor vs employee review
Whether your foreign contractors would be reclassified as employees, and the exposure if so.
How it works
Your email and a sentence about what you need is enough to start. The questions below it are optional, and answering them only means my first reply already has a price in it.
Map the people and places
Who is paid, where they live, where they work.
Analysis
A written assessment of the Estonian position and the foreign exposure.
Implementation
Payments, declarations and documentation 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. Board member remuneration paid by an Estonian company generally has an Estonian source, and many treaties allow Estonia to tax it. The person's country of residence 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 - particularly if the person concludes contracts or the activity is central to the business. It needs assessing on the facts.
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