A non-resident is someone whose place of residence is not Estonia and who stays in Estonia for less than 183 days in a period of 12 months. The residency is decided, taking into account all of the days that were physically spent in Estonia.
Non-residents have a limited tax liability in Estonia, and only the Estonian-source income is taxed in Estonia. Non-residents can claim deductions and allowances available to residents if they are residents of another EU country and have received at least 75% of their income from Estonia.
If the international agreement for the avoidance of double taxation prescribes more favourable conditions for the taxation of the income of non-residents than those provided by law, the provisions of the international treaty apply. You can apply for the tax incentives or exemptions arising from these tax treaties if you have certified your residence status to the tax authority, which can be done using Form TM3 (available on the website of the Estonian Tax and Customs Board). It is not necessary to submit the document if data on you and your residency have been entered in the register of taxable persons. In the event that your income tax has been withheld at a higher rate than prescribed in the tax treaty, you may apply to the Estonian tax authority within three years from the deadline for the payment of the tax for a refund of the overpaid tax amount.
A non-resident is obliged to submit a tax return if he/she has received taxable income that is subject to taxation in Estonia, but on which no income tax has been withheld upon payment.
There are generally no differences for the taxation of residents and non-residents in the case of social tax.
For further information on taxation issues and in the event of difficulties determining your country of residency, see the website of the Estonian Tax and Customs Board or contact the ETCB directly.
Estonian Tax and Customs Board. Foreigners coming to work to Estonia – taxation checklist (pdf)