III pillar

Income Tax Incentive on contributions

A common income tax advantage is applied for different products of contributions of supplementary pension: the Estonian Tax and Customs Board refunds you:

  • 20% from the contributions made during the calendar year, which does not exceed 15% of your gross income.
  • 20% from the contributions made during the calendar year but no more than 6000 euros.
  • If the above amounts were also paid for the taxpayer by the employer, the limits specified in the previous sentence shall be reduced by the amounts paid by the employer, which are not subject to income tax.

The advantage is applied only to the amounts collected for pension; the amounts paid for insurance protection (e.g. life insurance) should be subtracted from the amounts of contributions. In order to the income tax advantage to be applied for the pension insurance, the contract must be effective for at least 5 years until you are 55.

The income tax advantage will remain effective in case you decide to change the fund.