What Do I Need to Do as an Employee or Contractor of My Company for the Migration to Companio Work?
There are 3 possible scenarios:
If you identify as a digital nomad without tax residency anywhere, you should select the contractor option when going through the migration process. Being employed as staff is not feasible in this case. It’s crucial to seek advice from a local tax advisor to verify your tax status.
For individuals residing in a country other than Estonia, you have the choice to either become a contractor or an employee using Companio Work.
If you opt for employee status, we will manage social taxes, unemployment, and pension contributions on your behalf.
Alternatively, you can be a contractor . In this case make sure to officially register yourself in your country of residence. Then, you will need to send monthly invoices to your Estonian company using your name and current address, as if you were an independent contractor. This requirement is simply to comply with local laws, fulfill tax obligations, and avoid legal issues when working as a contractor or business entity.
If you are an Estonian tax resident, you have the flexibility to become either a contractor or an employee.
If you choose employee status, we will handle social taxes, unemployment, and pension contributions.
Additionally, you can establish a freelance business with us and invoice your company, which can be advantageous for multi-member companies.
Scenario 1: Digital Nomad (Non-Tax Resident)
If you identify as a digital nomad without tax residency anywhere, you should select the contractor option when going through the migration process. Being employed as staff is not feasible in this case. It’s crucial to seek advice from a local tax advisor to verify your tax status.
Scenario 2: Resident of a Non-Estonian Country
For individuals residing in a country other than Estonia, you have the choice to either become a contractor or an employee using Companio Work.
If you opt for employee status, we will manage social taxes, unemployment, and pension contributions on your behalf.
Alternatively, you can be a contractor . In this case make sure to officially register yourself in your country of residence. Then, you will need to send monthly invoices to your Estonian company using your name and current address, as if you were an independent contractor. This requirement is simply to comply with local laws, fulfill tax obligations, and avoid legal issues when working as a contractor or business entity.
Scenario 3: Estonian Tax Resident
If you are an Estonian tax resident, you have the flexibility to become either a contractor or an employee.
If you choose employee status, we will handle social taxes, unemployment, and pension contributions.
Additionally, you can establish a freelance business with us and invoice your company, which can be advantageous for multi-member companies.
Updated on: 20/02/2024
Thank you!