Estonian Tax Hike Signals End of an Era.

Escape the Tax Trap: Unlock 95% of Your Profits Legally

Estonia’s Tax Reforms: A Growing Burden for Entrepreneurs

For decades, Estonia has been celebrated as a hub for innovation and business, attracting entrepreneurs with its straightforward e-residency program and digital-first approach. The country’s low corporate tax structure, allowing businesses to defer taxation until profits were distributed, made it a go-to destination for global business owners.

However, the recent tax reforms have cast a shadow on this reputation, leaving many business owners facing a staggering tax burden of over 30% on their profits.

As of January 1, 2025, Estonia has implemented significant tax reforms:

Rate on Distributed Profits: The corporate income tax rate on distributed profits has increased from 20% to 22%. This means that for every €78 of net dividends, €22 is paid as tax, resulting in an effective tax rate of approximately 28.21% on distributed profits.
Abolition of the Reduced Rate: The previously available reduced CIT rate of 14% for regular profit distributions has been abolished. Consequently, all distributed profits are now taxed at the standard 22% rate.
Defense Tax (2%): An additional 2% defense tax has been introduced, applied to the annual accounting profits.

But what if there were a legal, EU-compliant way to significantly reduce your corporate tax to just 5%, with no taxes on dividends in Estonia? This isn’t just a hypothetical scenario; it’s a reality with the help of Veyra and the Madeira International Business Centre (IBC).

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A Look at Estonia's Tax Reforms

Estonia’s tax system was once a beacon of simplicity and efficiency. Businesses paid 0% tax on retained earnings and only 20% on distributed profits. However, as economic pressures mounted, the Estonian government introduced reforms, increasing the effective tax rate for many entrepreneurs to over 28.2%. This includes not only corporate taxes but also dividend taxes, creating a significant financial strain on business owners.

For entrepreneurs making substantial profits, these changes have turned what was once a tax-friendly jurisdiction into a much more expensive one.

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The Madeira IBC: A Legal and EU-Compliant Solution

Through the Madeira International Business Centre (IBC), an EU-approved tax regime, businesses can pay as little as 5% corporate tax on their profits, without incurring additional taxes on dividends in Estonia. This structure is entirely legal and works seamlessly within EU laws, offering a lifeline to business owners who feel the squeeze of Estonian tax hikes.

With Veyra, the transition is smooth and secure. We work exclusively with Estonian lawyers to ensure that all documentation adheres to Estonian law, eliminating the risk of legal surprises down the line. This means you can enjoy substantial tax savings with complete peace of mind.

Let's calculate how a simple move can increase your wealth, without working a single day extra:

Estonian Scenario:

Corporate Profits: €500,000
Income Tax (28.2%): €141,000
Net After Tax: €359,000

Madeira IBC Structure:

Corporate Profits: €500,000
Total Tax (5%): €25,000
Dividend tax in Estonia: €0,00
Net After Tax: €475,000

Your Immediate Advantage: €116,000 saved annually

The Ten-Year Perspective:

Total Estonian Taxes: €1,410,000
Total Madeira Taxes: €250,000
Your Tax Savings: €1,160,000

This isn't just about savings—it's about transformation. With an extra €1,160,000 over a decade, you could:

Acquire prime real estate in Madeira's growing market
Fund an entire R&D department
Launch three new product lines
Scale your team from 5 to 25 employees
Create a venture capital arm for strategic investments

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Why This is 100% Legal and Risk-Free

Compliance: All documents are vetted by top Estonian lawyers.
Transparency: Veyra ensures there are no hidden risks or surprises.
EU Approval: The Madeira IBC operates under EU regulations, guaranteeing its legality.

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Our Simple, Hassle-Free Process

Consultation: We analyze your current tax structure.
Strategy Development: Tailored solutions for your business.
Legal Compliance: All documentation reviewed by Estonian and EU lawyers.
Implementation: Smooth transition to the Madeira IBC.

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Why Veyra is your Trusted Partner

Estonian Legal Compliance: We work exclusively with Estonian lawyers to ensure all documentation meets local laws, avoiding any surprises.
Proven Solutions: Our team has extensive experience in implementing the Madeira IBC structure within EU regulations.
Transparent Process: You can rest assured that our strategies are fully compliant, ethical, and effective.

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Take Control of Your Taxes Today

If you’re an Estonian business owner or have a business and tax residency in Estonia, we offer a proven, legal alternative that keeps more of your hard-earned profits in your pocket.

Contact us today to learn how you can start saving legally and sustainably.