On 11 December 2024, the Estonian parliament approved the Security Tax Act (512 SE), providing for the introduction of a new broad-based security tax that applies until 2028. As previously reported, the security tax is to be used for the development of Estonia's defense capabilities and security investments.
In particular, the Act provides for:
- A 2% security tax on personal income from 2026;
- A 2% security tax on company profits from 2026; and
- A 2% increase in VAT from 1 July 2025.
The 2…