What Is a Board Member Salary?

A Board Member Salary allows a member of the board of an Estonian company to receive remuneration directly from the company for performing their management duties.

This type of remuneration is subject to Estonian taxation and social contributions, which are paid to the Estonian authorities. Because these social taxes fund Estonia’s social security system (including healthcare and pension entitlements), a Board Member Salary is generally most suitable for board members who are tax residents in Estonia or who reside there and benefit from the local social protection system.

When using this option:

• The board member is registered in the Estonian Employment Registry (TÖR).
• The salary is declared monthly in the TSD tax report.
• Taxes related to this remuneration are paid in Estonia.

The Board Member Salary is an add-on service to your Companio plan. Please refer to our Pricing Page to check the amount for the Pro Plan or Premium Plan.

This fee covers the administration, registration in TÖR, salary declarations, and tax reporting.

The salary itself and the related taxes are paid by the company separately.

How are the taxes handled?

Board member salaries are declared in Estonia and typically include:

• Social tax
• Income tax
• Other applicable payroll contributions

Our team handles the monthly declaration through the TSD report.

Can I use this if I live outside Estonia?

In many cases, an Estonian Board Member Salary may not be compliant with the tax and employment regulations of the country where you live.

If you are a tax resident outside Estonia (for example in Spain, Germany, or France), your local authorities will generally require your remuneration to be declared and taxed in your country of residence, often including mandatory local social security contributions. Receiving income through an Estonian Board Member Salary may therefore create legal and tax inconsistencies.

For board members living abroad, we usually recommend Companio Work, which allows you to receive a fully compliant local salary in your country of residence while maintaining your role in the company.

Ultimately, each board member is personally responsible for determining their tax residency status and ensuring their income is declared and taxed correctly in the appropriate jurisdiction.

Can I change this later?

Yes. You can change the salary amount, pause payments, stop the board member salary, or switch to Companio Work depending on your situation.

Updated on: 11/03/2026