InfoCourier provides a monthly overview of the latest changes in legislation.
The Riigikogu has passed a series of amendments to the Aliens’ Act to update the regulations governing the life, work and study of foreign nationals in Estonia. In particular, the amendments seek to encourage highly qualified foreigners to take up temporary or permanent residence here to bring added value to Estonia.
The most significant change concerns the digital nomad visa, which is currently being implemented in Estonia. The visa facilitates the stay of so-called digital nomads in Estonia. A digital nomad is a person who works independent of location, doing web-based work while travelling from one country to another. Digital nomadism is a popular practice in the fields of IT, finance and marketing. As formerly such workers were required to have an employer in Estonia, they often came on tourist visas even though they wanted to work from here. As digital nomads do not fall under the rules of traditional work, the requirement of having an Estonian employer may have discouraged them from coming to Estonia as it was harder for them to establish an appropriate basis for their stay here.
A digital nomad visa may be short-term or long-term and visa applications will be subject to general visa conditions. To come to Estonia to work remotely from here, digital nomads need a mediator who assumes responsibility for their stay.
Other amendments specify requirements for employers as the inviting party, who must register the short-term employment of their foreign employees, and adjust the rules for seeking a long-term visa.
More information on amendments to the Aliens’ Act is available here (in Estonian).
Additional information: Tax Advisor Einar Rosin email@example.com.
The circuit court has examined a situation where a private individual did not pay income tax on the gains derived from the sale of property, relying on art 15 (5) 1) and 4) of the Income Tax Act, providing a tax exemption for gains from the transfer of immovable property if an essential part of the immovable is a dwelling used by the taxpayer as their place of residence until the sale (clause 1) or if the property includes a summer cottage or garden house owned by the taxpayer as a movable or an essential part of an immovable for more than two years and the size of the registered immovable does not exceed 0.25 hectares.
The court ruled that the exemption was not justified in this case as there was no summer cottage or garden house on the property at the time of the sale, which could have been used for at least seasonal occupancy. The court also reiterated several principles with a bearing on the taxation of immovable property transactions:
More information on the judgment is available here (in Estonian).
Additional information: Tax Advisor Ave Rego firstname.lastname@example.org.
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