Basics

• How Do Salaries and Dividends Work for an Estonian Resident?

  This article is about how salaries and dividends function for people who live in Estonia, not for those who have e-Residency. If you are thinking about living in Estonia and becoming a resident, keep reading. What are the tax implications for dividends received by Estonian residents? Estonian residents who receive dividends do not need to pay personal taxes on those dividends. The company paying the dividends is subject to corporate tax (20% of the gross amount), but the individuaSome readers

• What Is the Daily Allowance for My Company?

  What is the Daily Allowance? The Daily Allowance is a travel allowance granted to board members or company employees for business trips. It is paid from the corporate bank account and is tax-free. How does the Daily Allowance work? The Daily Allowance functions as any other work allowance for business trips. For instance, if you are a board member or employee of a design agency, and you travel to a designers' conference in San Francisco, United States, for a week, you can claim one week'sFew readers

• How Do I Hire Employees & Contractors for My Company?

  Are you thinking about hiring employees? That's great news for your growing business! We know that hiring employees for an international business can be confusing. Don't worry. We're here to help! We've gathered the most common questions and answers to guide you through the process. What should I consider when hiring professionals or freelancers? If your employees are professionals or freelancers in their countries of residence, it can be a good option for your business. In this case,Few readers

• What Should I Consider When Hiring Employees?

  When you hire employees for your company, there are a few important things to remember. Firstly, you will be responsible for paying full taxes on the employee's salary, which includes social benefits like medical care, unemployment benefits, and pension plans. This is beneficial as it ensures regular social security and pension fund contributions. Secondly, you must also cover the employee's salary, corporation, and income tax. Hiring international employees may seem complex, but iFew readers

• What Should I Do Before Hiring Employees or Contractors?

  Before making any hiring decisions, it's important to take the time to evaluate your options and choose the approach that best suits your company's needs. Consider factors such as the type of employment (professionals, freelancers, or employees), their geographical location (Eg. digital nomads (/en/article/how-do-i-hire-people-with-geographiFew readers

• How Do I Hire People With Geographical Independence or Digital Nomads?

  Their situation is unique if your employees, such as digital nomads, are geographically independent without tax residence. In this case, your company would pay them a contractor fee. Digital nomads must consult with a local tax advisor to ensure they have no obligations in their countries of origin or residenceFew readers

• What Should I Consider When Hiring Professionals or Freelancers?

  If your employees are professionals or freelancers in their countries of residence, it can be a good option for your business. In this case, they will issue invoices for their services rather than receive a salary. You can declare these invoices as expenses, making the money tax-free. Additionally, these professionals will contribute to their social security and pension in their respective countries.Few readers

Payments

• If I'm a Board Member or Shareholder, How Do I Pay Myself?

  Here are your available options: Dividend Distribution: You can choose to distribute dividends, typically done once a year after the annual report, provided there are profits available for distribution. This option assumes you can distribute enough dividends to cover your annual expenses. Employment through Companio Work: Consider becoming an employee of your Estonian company, even if you don't reside or are a tax resident in Estonia. With Companio Work, you can enjoy a seamless hiSome readers

Companio Work

• What Does It Mean to Be a Digital Nomad or Location-Independent Employee?

  A digital nomad or location-independent worker is someone who doesn't have a fixed tax residence in any specific country. If you or some of your employees are not tax residents anywhere, you cannot be employees through Companio Work, and you should consider yourselves as contractors, invoicing your company every month for services. However, please note that being a digital nomad is not the same as not being a tax resident anywhere. For these individuals, it is crucial to consult with a lFew readers

• Employees and Contractors: What is the Difference?

  An employee is someone who is formally employed by your company and receives regular monthly salaries. They have employment contracts and are subject to various payroll taxes and contributions in their respective countries of residence. You can be an employee within Companio Work, regardless of your location, even if you reside in Spain or any other country. To learn more about how Companio Work can assist you or your employees, please read this article (https://help.companio.co/en/articlFew readers