Important information

  • The income tax rate in 2015 was 20%.
  • The basic exemption of a natural person in 2015 was 1848 euros.
  • Taxpayers, who were married to each other as of the last day of the period of taxation, may submita joint income tax return.

Important dates 2016

  1. 8 to 10 February – you can view the pre-populated tax return in the e-Tax Board. Check the data and modify or update them if necessary.  Read more
  2. 15 February – the filing of pre-populated electronic income tax returns begins on the website of the Tax and Customs Board.
  3. 29 February – the refunding of overpaid income tax on the basis of electronically filed income tax returns begins.
  4. 31March - the final deadline for filing income tax returns. You can file the tax return either electronically or on paper.
  5. 1 July – the final deadline for refunding overpaid income tax if the tax return is subject to additional inspection. You will receive information about the need for additional inspection of your tax return in the e-Tax Board from the day following the day you filed your tax return. The additional income tax subject to payment based on the tax return must, as a rule, be paid by 1 July. As an exception, resident natural persons who declared income from business or profit from transfer of property can pay income tax by 1 October, at the latest.

Deductions

  • You can deduct from taxable income the amounts paid under the pension insurance contract and the contributions made to the third pension pillar fund to the extent which does not exceed 15% of your gross income for 2015, up to 6000 €. Read more
  • Paid housing loan and lease interest amounts, training expenses, gifts and donations provided for in section 27 of the Income Tax Act can be deducted from income in the total amount of up to 1920 euros per taxpayer, but not more than 50% of the taxpayer's income for the same period, from which the deductions related to enterprise have been made. Read more

    A single parent who used the parental leave during the period of taxation may deduct the housing loan or lease interest amounts paid during the same period of taxation in full or in part from the income of the subsequent periods of taxation notwithstanding the above restriction.

The interest amounts of a loan or lease taken for the acquisition of a dwelling or for the acquisition of a plot of land with the aim of building a dwelling there, which the taxpayer has paid to the bank during the past year, can be deducted from taxable income.

Construction, expansion and reconstruction of a building as well as replacement or modification of a building's utility systems, modification of the division of space of a building and construction and installation operations related to the technological modification of a building on the basis of a building permit or building design documentation are also deemed to be acquisition. Ordinary repairs are not included here.

The interest amount of a housing loan or lease taken from 1 January 2005 can be deducted from taxable income only in the case the taxpayer has purchased the dwelling for himself/herself. If the contract was entered into prior to 1 January 2005, you can also deduct the interest amounts of a loan or lease taken for the purchase of a dwelling for your spouse, parents or children.

You can deduct from your taxable income the interest amounts of a loan or lease taken for the purchase of one dwelling only.

In the tax return for 2015 the following data must be indicated:

  • the number of the registered immovable of the dwelling or the cadastral code of the plot of land purchased with a loan;
  • also, the percentage of using the loan for its designated purpose and the interest amount corresponding to it.

The percentage used for the designated purpose shows how much of the total amount borrowed was used for the purchase of the dwelling, on the account of which deductions are permitted.

Example of determining the percentage of using the loan for its designated purpose

If you are an Internet bank user, you will find an overview of housing loan and lease interest in the Internet bank. If you are not an Internet bank user or You would like to get a certificate for the tax return filed on paper then You will receive it from the nearest Swedbank branch.

If the borrower has changed during the year, no information about the loan interest paid during the year will be displayed to the former borrower or the current borrower and the co-borrower in the Internet bank. A certificate about the loan interest paid can be ordered by calling to Consultation Centre 6 310 310.

HOUSING LOAN WITH A CO-BORROWER

An overview of the housing loan or lease interest is displayed in the Internet bank to all the parties to the contract. The entire amount of interest related to the loan is displayed to each of them.

The borrower and co-borrower(s) can send the interest data from the Internet bank to the pre-populated electronic tax return, but the interest data are entered in the pre-populated tax return differently depending on the number of co-borrowers.

If according to the contract there is one co-borrower, 50% of the interest amount will be entered in the borrower's pre-populated tax return and 50% in the co-borrower's pre-populated tax return. If the borrower (as a 100% owner of the dwelling) wants to declare the entire amount, the co-borrower must delete the interest from his or her tax return. Then the borrower can declare the full amount. The data must be corrected manually.

If according to the contract there is more than one co-borrower, the entire amount of interest paid is entered only in the borrower's pre-populated tax return.

Attention! In the event of loan contracts with two and more co-borrowers the deduction of loan interest from income is more complicated than in the event of loans with one co-borrower. Therefore, we recommend that you contact the Tax and Customs Board for assistance.

If you have declared your housing loan or lease interest in previous years, your interest distribution principle for the previous years is preserved in the database of the Tax and Customs Board. For example, if last year you declared the entire interest amount in your tax return, the same principle is applied this year.

Below you will find a couple of examples from the Tax and Customs Board, which should help you upon deduction of loan interest from your income in the event of two borrowers who are not spouses married to each other.

Example of two borrowers who are not married to each other

If the borrowers are married to each other and the dwelling purchased with the loan is joint property, the spouses have to agree how to deduct the interest from income, i.e. whether in a joint tax return or in separate tax returns; whether 50% by one spouse and 50% by the other spouse or 100% by one or the other spouse.

Interest on the loan taken for the purchase of a joint dwelling can also be declared in the joint tax return of the spouses if the loan was taken by one spouse and the dwelling is in the name of the other spouse.

STATE EDUCATIONAL LOAN

The Tax and Customs Board will not refund income tax on the educational loan interest paid in 2015.

You can deduct from taxable income the amounts paid under the supplementary funded pension insurance contract and the contributions made to the voluntary pension fund (the third pension pillar) to the extent which does not exceed 15% of your gross income for 2015. If you are an Internet bank user, you will find an overview of the amounts paid to pension insurance and third pension pillar funds here.

When declaring your income for 2015 it is important to note that in accordance with the amendments to the Income Tax Act you can deduct a maximum amount of 6000 euros.

PENSION INSURANCE

You can deduct the insurance premiums paid under the supplementary funded pension insurance contract from your taxable income in the amount used for the collection of future pension money. The part of premiums paid for life insurance cannot be deducted from taxable income.

An overview of the insurance contract, including information about the amounts to be declared, will be sent by post to the clients of Swedbank Life Insurance SE, who are not active users of the Internet bank, in the beginning of February. If you prefer to submit a certificate on paper to the Tax and Customs Board, please call Swedbank Investment Support number 613 1606 and the certificate will be sent to you by post. Swedbank Life Insurance SE will send the data about pension insurance premiums to the Tax and Customs Board. The latter will enter the data in the pre-populated electronic tax returns.

PENSION FUNDS

The following cannot be deducted from your taxable income:

  1. acquisition of units of a voluntary pension fund if the units have been acquired by way of exchanging existing units for units of another fund; or
  2. contributions made under a supplementary funded pension insurance contract if income earned from the sale of voluntary pension fund units is used for the contributions.

Swedbank Investeerimisfondid AS will send the data about all third pension pillar fund units purchased to the Tax and Customs Board. The latter will enter the data about third pension pillar funds in the pre-populated electronic tax return.

The data will be sent to the Tax and Customs Board without transaction fees. If you want to declare transaction fees as well, please enter them in the tax return yourself. If you prefer to send the Tax and Customs Board a certificate on paper, please notify Swedbank by calling the Investment Support number 613 1606 or by e-mail at investeerimistugi@swedbank.ee and the certificate will be sent to you by post.

All the above instructions apply to the income tax return of a resident natural person.

No income tax is levied on the income, which a natural person obtains from the exchange of units of the funds managed by the same management company, provided no payments were made to him/her.

SECURITIES

The data about securities transactions registered in the Estonian Central Register of Securities (ECRS) are entered in the pre-populated income tax return. The pre-populated data on securities are not final and the declarer has to adjust these himself/herself.

The data on securities transactions can be viewed in the Internet bank under the menu item Income tax return data > My data from 15 February .

If you have transferred any securities in 2015, the tax return must specify the acquisition price and costs as well as the transfer price and costs of the transferred securities (a share, unit, privatisation voucher, bond, debenture, option, future, forward, etc.). The difference between the acquisition price (plus the acquisition costs) and the transfer price (less the transfer costs) results in the profit or loss on transfer of the securities. You will find the acquisition price from your securities account statement, which is available in the Internet bank under the menu item Investment, saving, pension > My Portfolio > Account statement.

Any loss sustained from the transfer of securities during the same period (or previous periods) may be deducted from the profit earned from the transfer of securities. However, if the loss sustained from the transfer of securities exceeds the profit, the amount of loss cannot be deducted from other taxable income. In such an event the loss derived from the transfer of securities can be carried forward to the following taxable periods and deducted from profit to be received from the transfer of securities in the future. The loss must be declared during the year following the year when it was sustained because profit/loss is always declared in the period following the ended tax period.

No income tax is levied on the income, which a natural person obtains from exchange of units of the funds managed by the same management company, provided no payments were made to him/her.

It is important to keep in mind that after 1 July 2005 any loss arising from transfer of a security granting the right to dividends cannot be deducted from the profit received from transfer of other securities if the security was acquired within 30 days prior to the date of determining the persons entitled to dividends and transferred within 30 days after the above date.

Based on the declared data, the Tax and Customs Board will calculate the additional amount of tax to be paid and send a written tax notice with regard to that. The amount specified in the tax notice has to be paid by 1 July 2015 (in the event of self-employed persons by 3 October 2015).

Read more about taxation of securities here.

You can get information about the transactions concluded on the Swedbank securities account and the associated costs from

DIVIDENDS

Dividends received from an Estonian resident are exempt from income tax and need not be specified in the tax return. Dividends received from a foreign country must be entered in the tax return. If income tax has been withheld on dividends received abroad or you have paid income tax on the dividends abroad, the income tax paid or withheld abroad can be deducted from income tax in Estonia only on the basis of a certificate issued by a foreign tax authority or a withholding agent. If there is no certificate with regard to the income tax withheld or paid abroad, the income tax paid abroad cannot be entered in the tax return.

INVESTMENT DEPOSIT

Any income earned on an investment deposit entered into from 1 January 2011 is subject to income tax. Interest paid on investment deposits entered into before 1 January 2011 is not subject to taxation.

INVESTMENT ACCOUNT

Starting from 1 January 2011 you can defer the taxation of income received on the majority of investments (securities, investment deposit, unit-linked life insurance) by using an investment account for investments. An investment account is a regular bank account, which must be declared as such to the Tax Board in the tax return. If you use an investment account, the amount by which the disbursements from the account exceed the contributions to the account is subject to taxation. Read more about the investment account and suitable investments or financial assets here.

UNIT-LINKED LIFE INSURANCE

The part of disbursements received under a contract concluded before 1 January 2001, which exceeds the insurance premiums paid on the basis of the same contract, is subject to taxation if the disbursements were received before five years had passed from entry into the insurance contract. Starting from 1 January 2024 all disbursements under unit-linked life insurance contracts exceeding the insurance premiums paid will be subject to income tax.

The part of disbursements received under a contract concluded during the period from 1 January 2001 to 31 July 2010, which exceeds the insurance premiums paid on the basis of the same contract, is subject to taxation if the disbursements were made before twelve years had passed from entry into the insurance contract. Starting from 1 January 2024 all disbursements under unit-linked life insurance contracts exceeding the insurance premiums paid will be subject to income tax.

The part of disbursements made under a contract concluded on or after 1 August 2010, which exceeds the insurance premiums paid on the basis of the same contract, is always subject to taxation regardless of the date of the disbursement. If you are an Internet bank user, you will find an overview of the disbursements made under the unit-linked life insurance contract here.

An overview of the insurance contract, including information about the amount to be declared, will be sent by post to the clients of Swedbank Life Insurance SE who are not active users of the Internet bank in the beginning of February. If you prefer to file a certificate on paper to the Tax and Customs Board, please call Swedbank Investment Support number 613 1606 and the certificate will be sent to you by post.

Swedbank Life Insurance SE will send the data about disbursements to the Tax and Customs Board. The latter will enter the data in the pre-populated electronic tax return.

Frequently asked questions

  • Where and when can I modify and submit the pre-populated tax return in the Internet bank?

    From 8 to 10February 2016 the Tax and Customs Board will open e-Tax Board for viewing and checking the data. Tax returns can be submitted from 15 February 2016.

  • How can I send interest data to the pre-populated electronic tax return?

    You can enter data about your home loan or lease interest paid in the pre-populated tax return from under the 'Tax Return Preview' menu by ticking a respective contract and pressing the button 'Send data to Tax and Customs Board'.
  • What is the registry code of Swedbank?

    The registry code of Swedbank AS is 10060701
    The registry code of Swedbank Liising AS is 10434248
    The registry code of Swedbank Life Insurance SE is 10142356
    The registry code of Swedbank Investeerimisfondid AS is 10194399
  • When will the Tax and Customs Board refund the money?

    The Tax and Customs Board has informed that:
    • to clients who delivered the tax return electronically and whose tax return is not subject to any further inspection, the overpaid income tax will be refunded to the bank account specified in the tax return within 5 working days following the submission of the tax return, but not earlier than on 29 February 2016;
    • to clients who submitted their tax return on paper or in the event of tax returns delivered electronically and subject to further inspection by the Tax and Customs Board the income tax will be refunded not later than by 1 July 2016 (to self-employed persons and those who have derived profit from transfer of property by 3 October 2016).
  • Why is it that my tax return has only half of my housing loan interest, although I have sent the full amount?

    Obviously, you have taken the loan jointly with a co-borrower. In such case the Tax and Customs Board divides the interest amount into two and enters: 50% in the borrower's tax return and 50% in the co-borrower's tax return.

    If you want to declare the full amount, you can correct the data in your tax return (using the button „Change“). It is important that you do not declare over 100% in total for the borrower and co-borrower.

    Note: You must be sure that the conditions of the designated purpose of the loan – who is the owner of the property and for which purpose it was purchased – required for the use of tax incentive and provided for in the Income Tax Act are also complied with. For assistance, please address the Tax and Customs Board or read more about the deduction from income of interest on a loan taken with a co-borrower on our website .
  • How to declare interest on the loan taken with a co-borrower or co-borrowers?

    An overview of the housing loan and leasing interest is displayed in the Internet bank to all the parties of the contract. The entire amount of interest related to the loan is displayed to each of them. The borrower and co-borrowers can send interest information from the Internet bank to the pre-populated electronic tax return, but interest information is entered in the pre-populated tax return differently depending on the number of co-borrowers.

    If according to the contract there is one co-borrower, 50% of the interest amount is entered in the borrower’s pre-populated tax return and 50% in the co-borrower’s pre-populated tax return. If the borrower (as a 100% owner of the dwelling) wants to declare the entire amount, the co-borrower must delete the interest from his or her tax return. Then the borrower can declare the full amount. The borrower must correct the data manually.

    If according to the contract there is more than one co-borrower, the entire amount of interest paid is entered only in the borrower’s pre-populated tax return.

    Note: You must be sure that the conditions of the designated purpose of the loan – who is the owner of the property and for which purpose it was purchased – required for the use of tax incentive and provided for in the Income Tax Act are also complied with. For assistance, please address the Tax and Customs Board or read more about the deduction from income of interest on a loan taken with a co-borrower on our website .
  • I entered the housing loan interest manually in my tax return. Will I not get a refund promptly now?

    If you fill in your housing loan interest table by hand, the Tax and Customs Board recommends that you send these data to the pre-populated tax return through the Internet bank to allow the data to be verified more quickly. Verification of any statements submitted on paper takes more time, and this also delays the refunding of the overpaid income tax.

    You can also check with the e-Tax Board if they require any additional documents.
  • What should I do if the Tax Board has different data on my loan interest?

    If you have entered the data about the interest you have paid by hand, we advise you to re-enter the interest data in the tax return from ‘Send data to Tax and Customs Board’ under the ‘Income Tax Return Preview’ in the Internet bank. To amend the tax return, you will have to submit a new tax return. You will find more information at the e-Tax Board.

    If you cannot send the interest electronically, an interest amount certificate on paper will have to be submitted to the Tax and Customs Board. You can obtain the certificate on paper from the nearest Swedbank branch.
  • How can I request the certificate of interest paid in the previous years?

    You can order a certificate about loan agreement incl. paid interest in previous years, also in english if needed.

    Request certificate

What will you do with the money refunded by the state?

How do I find out quickly that the money has been refunded?

Tax Board contacts