The Baltic country is one of the most progressive in Europe in terms of digitalization. Estonia was the first to adapt to the changing work culture and introduced e-residency in 2014.
In mid-2020, the government opened the Digital Nomad Visa program for remote specialists who are not tied to one location. The government issues short-term and long-term C and D visas for foreigners for a period of 6 and 12 months. The government allows to work under employment contracts with companies registered abroad, conduct business in another country, engage in freelancing.
Specifics of the Estonian freelance visa
At the beginning of 2024, the country ranked 20th in the World Digital Nomad Index with a score of 3.01. From 2020-2024, the government issued a total of 535 visas for nomads.
An Estonian nomad visa is the equivalent of an annual residence permit. People from technological and creative professions apply for it. Among them are representatives of IT professions: software developers, graphic designers, social network managers. Specialists of other professions working outside of freelance offices can participate in the program.
E-residency simplifies the lives of entrepreneurs. This certificate with a special chip allows its holder to manage shares and develop his/her business remotely. With its help, individual entrepreneurs solve administrative and financial issues without wasting time on verifying payments, as well as sign contracts. There are no limits on the issuance of DNV visas, and it can be obtained by adult self-employed and freelancers with certain incomes. The main conditions in 2024:
- use of telecommunication technologies in activities;
- confirmation of qualification requirements;
- contract with a foreign company;
- provision of freelance/ consulting services under foreign contracts;
- income from 3,500 euros.
What taxes do freelancers pay?
Individuals who have lived in the territory for more than 183 days are recognized as tax residents. Expats undergo electronic registration and receive a digital ID-kaardiga. Income tax (tulumaks) is calculated at a rate of 20%. Part of the non-taxable income depends on the annual profit.
When earning up to €14,400, the non-taxable part is €7,849. Income of €25,200 is exempt from tax of €10,800. For individual entrepreneurs, expenses related to work activities are additionally deducted from the taxable amount. Social tax (sotsiaalmaks) is paid by entrepreneurs in the country of work at a rate of 33% of income.
How much does the visa cost?
The price of registration for self-employed and freelancers depends on the category. DNV type costs €80, category €100. The state fee is allowed to be paid in cash at the consulate. Children under 6 and students are exempt from the duty.
It is sometimes difficult to understand all the bureaucratic intricacies on your own, but our experts are always ready to consider your case and help you on the path to a comfortable life.
Necessary documents
Before receiving the visa, the applicant needs to fill out an application, collect a package of documents and present with the package of documents at the interview. File for Estonian Nomad Visa must contain:
- passport;
- a printed online application;
- work contract with the company/client;
- consent of the employer;
- a bank statement for 6 months;
- domicile address;
- police clearance certificate;
- €30,000 health insurance;
- diploma, certificate of advanced training.
The digital nomad visa can not be renewed. Those wishing to stay in the country are obliged to collect a new file of documents. When re-submitting, the visa is extended only for 6 months. After 1.5 years, digital nomads are leaving the country.
Recent changes in the visa issuance in Estonia
Since the fall of 2022, the authorities have banned Russian visa holders from crossing the border for the purpose of tourism, attending cultural and other events. Exceptions are made for those who come on humanitarian grounds to relatives, students at local universities. The ban will not affect Russians with open Schengen of other EU countries.
In mid-2025, the European Union is preparing to launch the ETIAS system. It involves tightening security measures against third-country tourists coming on short-term visits to the Schengen area.
