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Dividends vs Salary in Estonia: Tax Efficiency, Balance and Business Identity
For e-Residents running Estonian companies, it is essential to understand the difference between dividends and salary from a tax perspective - not as a formula, but as a strategic decision.
In Estonia, the numbers speak clearly:
Salary may cost up to 55% when all employment-related taxes are considered.
Dividends result in an effective tax burden of approximately 28.21%.
The difference is significant.
However, this does not mean that choosing only dividends or only

Inna Mrachkovska
Jan 202 min read
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