Estonia, what the…?!

I decided to read up on the upcoming changes to the e‑residency program and, at the same time, what is going on in Estonia in general: https://www.e-resident.gov.ee/blog/posts/changes-to-e-residency-in-2025-and-beyond/

After reading it I am almost speechless, because the Estonian government is currently considering tax law changes, and some of the points will affect Improvy OÜ as well:

1. The tax on distributed profit is going up from 20% to 22%, and the reduced tax rate on regularly distributed profit is being scrapped.

2. A corporate 'security tax' of 2% is being introduced (right now it is 0%).

3. VAT is going up again from 22% to 24%.

These are pretty major changes, especially the security tax, because right now I do not have to pay anything until I distribute capital. It is hard to even process all of this.

To be honest, I am tired of this never-ending story of tax hikes in different countries. Makes you want to just move the company to the UAE 🤬