Our tax consultation team has put together a simple comparison table of the primary corporate and personal taxes in Estonia, Lithuania, Sweden, Finland and UK. These tables are to be considered informative and general. Please note that tax rates can change. In case of further questions, feel free to contact us via email at estonia@1office.co
In case of further questions, feel free to contact us via email at estonia@1office.co
Corporate Taxes
VAT Tax
Standard 22%, threshold 40 000 €. 24% from July 1, 2025.
VAT reduced rate
9% is applied to books, newspapers and periodicals, hotel accommodation, and certain pharmaceuticals. 5% is applied to pharmaceutical products and some medical equipment.
VAT zero rate and exempt from VAT
0% is applied to intra-community and international transport. VAT-exempt: Certain medical services, social services, insurance, and financial services.
Corporate income tax
22%. Estonia has a unique corporate income tax system where profits are taxed when distributed as dividends, not when earned.
Dividend tax
15%. Dividends are taxed as part of the corporate income tax system when distributed. 20%
Fringe benefit tax
Fringe benefits are taxed as corporate income tax (20%) and social tax (33%). 33% (employer's contribution). This is comprised of: Pension insurance: 20%. Health insurance: 13%. Unemployment Insurance: Employer contribution: 0.8%. Employee contribution: 1.6%.
Gifts, donations, costs of entertaining guests, missing documents
20/80 income tax.
Starting 01.01.2025 22/78 income tax.
The contribution to the mandatory funded pension
Part of the second pillar of the pension system. Participant contribution: 3% of gross salary. State contribution: 1,5% of the average gross salary in Lithuania. These contributions are directed to private pension funds selected by the participant.
Social security contributions
Participation is voluntary. Contribution rates vary depending on the participant's choice.
VAT Tax
Standard 21%, threshold 45 000€
VAT reduced rate
9% for books, newspapers and periodicals, heating, accommodation, some public transportation 5% for medicine and some medical equipment
VAT zero rate and exempt from VAT
0% for intra-community and international transport. VAT-exempt: education, financial and insurance services, rental of residential property.
Corporate income tax
15%. 20% corporate income tax rate is applicable to credit institutions. 0% and 5% rates may be applied under certain conditions.
Dividend tax
0% or 15%, reduced rates may be applied according to Double Treaty Taxation (DTT)
Fringe benefit tax
Most employee benefits are treated as employment income, subject to personal income tax and social security contributions.
The contribution to the mandatory funded pension
Contributions to the Mandatory Funded Pension are part of the second pillar of the pension system. Participant’s contribution: 3% of gross salary. State contribution: 1,5% of the average gross salary in Lithuania. These contributions are directed to private pension funds selected by the participant.
Social security contributions
For employers (on top of gross salary) 1,77%-2,49% (depends on risk category) For employees (deducted from gross salary) 19,5 %.
VAT Tax
Standard 21%, threshold 30 000 €
VAT reduced rate
12%, food for infants, pharmaceuticals, medical products for disabled persons, domestic passenger transportation, books (excluding e-books), newspaper and periodicals, accommodation, district heating 5%, range of locally grown vegetables and fruit
VAT zero rate and exempt from VAT
0% for intra-community and international transport
Corporate income tax
20% (only dividends are taxed, earnings are not taxed as long as they are reinvested in the company)
Dividend taxes
0% or 20%/10%, reduced rates may be applied according to DTT
Fringe benefit taxes
N/A
The contribution to the mandatory funded pension
N/A
Social security contributions
23,59%
VAT Tax
Standard 25%, threshold 120 000 SEK
VAT reduced rate
12% for grocery, restaurants, accommodation 6% for public transportation, books, cultural and sport events tickets
VAT zero rate and exempt from VAT
0% for healthcare, dental care, social, educational, banking and insurance services. Reverse charge VAT 0% in the construction industry.
Corporate income tax
20,6%
Dividend tax
Swedish tax residents are taxed with the 3:12 rule. Lower limits are taxed with a 20% income tax. The part between the lower and upper limit is taxed as a private person’s income tax. The part that is exceeding the upper limit is taxed with 30% income tax. Non-tax residents are taxed based on the tax treaty or with 30% income tax.
Fringe benefit tax
Taxed as employment income (progressive or 30% income tax and 31,42% social tax)
The contribution to the mandatory funded pension
Included in the social tax
Social security contributions
31.42%; young and elderly 10,21%
VAT Tax
Standard 25.5%, threshold 15 000 €
VAT reduced rate
From January 1, 2025, products such as books (excluding magazines and newspapers) are subject to a 14% VAT rate. Additionally, the VAT rate for hotel services, public transportation, pharmaceutical products, and tickets for cultural and sporting events is 14%. Furthermore, the VAT rate for essential products like tampons and diapers is 14%.
VAT zero rate and exempt from VAT
0% for postal, insurance and healthcare services
Corporate income tax
20%
Dividend tax
A non-publicly listed company 7,5% up to 150 000 €, 28% exceeding part.
Fringe benefit tax
N/A
The contribution to the mandatory funded pension
25,85% basic fee (TyEL)
Social security contributions
1,34%; Unemployment insurance 0,5% up to 2 197 500 €; 2,05% from 2 197 500 € exceeded part.
VAT Tax
Standard 20%, threshold £90 000
VAT reduced rate
5% for electricity, gas and heating oil for non-business use, energy-saving materials, some hygienic products, some construction works
VAT zero rate and exempt from VAT
0% public transportation, groceries, periodicals, children’s clothing, some construction work for housing, insurance, financial services, direct mail services, books, publications
Corporate tax rates
Main Rate: 25% – Applies to companies with profits over £250,000.
Small Profits Rate: 19% – For companies with profits up to £50,000.
Marginal Relief: Available for companies with profits between £50,001 and £250,000, providing a gradual increase in the effective Corporation Tax rate.
Capital gains tax
If you’re a higher or additional rate taxpayer, the amount you pay will depend on the date and type of your gain.
Gains from 30 October 2024 onwards
You’ll pay:
- 24% on your gains from residential property
- 28% on your gains from ‘carried interest’ if you manage an investment fund
- 24% on your gains from other chargeable assets
If you’re a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.
Dividend tax
Basic rate 8.75%; Higher rate 33.75%; Additional rate 39.35%.
Note: The dividend allowance remains at £500
Fringe benefit tax
Taxed as employment income (personal income tax and national employer’s insurance)
The contribution to the mandatory funded pension
Must register employees into the pension scheme if their earnings are above £10,000 per year and they are aged 22+. If you are under the age of 22 but earn more than £6,240 per year you have the right to opt into the workplace 2025/26 Employer contributes minimum 5% and employee contributes 3%
Employers can choose to contribute more than the minimum requirement. If an employer contributes more than 3%, the employee’s required contribution can be reduced, provided the total minimum contribution of 8% is met.
Social security contributions
From 6 April 22 to 5 November 22 (7 months Employer National Insurance Contributions have risen to 15.05% on all earning above £175. From 6 November 22 to 5 March 23 (5 months) Employer National Insurance Contributions was reduced to 13.8%. Employment allowance has also increased to £5,000.
Personal Taxes
Personal Income Tax
Progressive: 0%, 20%, 40%, 45%
Personal Allowance: £12,570 (tax-free income)
Capital Gains Tax
22%
Mandatory Pension Insurance
2%
Mandatory Pension Insurance
2%
Unemployment Tax (employee)
1,6%
Social Tax
N/A
Personal Income Tax
Progressive 20%, 23%, 31%
Capital Gains Tax
20%
Mandatory Pension Insurance
N/A
Unemployment Tax (employee)
N/A
Social Tax
10,5%
Personal Income Tax
20%
Capital Gains Tax
15%
Mandatory Pension Insurance
0, 2,4%, 3%
Unemployment Tax (employee)
N/A
Social Tax
19,5%
Personal Income Tax
Progressive
Capital Gains Tax
30%
Mandatory Pension Insurance
Included in the social tax
Unemployment Tax (employee)
N/A
Social Tax
N/A
Personal Income Tax
Progressive
Capital Gains Tax
30% up to 30 000 € 34% if the realized capital income is over 30 000 €
Mandatory Pension Insurance
7,15% (17-52 years); 8,65% (53-62 years); 7,15% (63-67 years)
Unemployment Tax (employee)
1,5%
Social Tax
N/A
Personal Income Tax
Dividends: 0%, 8.75%, 33.75%, 39.35%; Other income: 0%, 20%, 40%, 45%
Capital Gains Tax
Sale of residential property: 0%, 18%, 28%; Other capital gains: 0%, 10%, 20%
Mandatory Pension Insurance
Employee contributes minimum 3% if enrolled
Unemployment Tax (employee)
N/A
Social Tax
From 6 April 22 to 5 November 22 (7 months) As an employee: you pay National Insurance contributions if you earn more than £242 a week for 2022-23. You pay 13.25% of your earnings above this limit and up to £967 a week for 2022-23. The rate drops to 3.25% of your earnings are over £962 a week. From 6 November 22 to 5 March 23 (5 months) the National Insurance contributions was reduced from 13.25% to 12% and from 3.25% to 2%.
Personal Income Tax
20% at €42,000; 40% at Balance
Capital Gains Tax
33%
Mandatory Pension Insurance
N/A
Unemployment Tax (employee)
N/A
Social Tax
4%: Paid on gross income up to €120,720, reduces to 0% on remaining income.
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