Frequently asked questions

Here you can find the most frequently asked questions about registering process, tax liability and special tax regimes.

Registration of ships


1. Which ships have the right to fly the Estonian flag?

The national flag of Estonia may be flown by:
  • ships the owner or charterer whereof is an Estonian citizen or a legal person in private law registered in Estonia.
  • ships the owner or charterer is a citizen of the Contracting States of the European Economic Area, whose place of business is in the contracting state, provided that he has a place of business in Estonia (not including a ship) or a responsible person with a place of business in Estonia.
  • ships in shared ownership if the greater share of the ship is owned by an Estonian citizen or a legal person in private law registered in Estonia.

The amount of the fees depends on the registry in which the ship is to be registered.

First register of bareboat chartered ships

The issue of certificates of nationality of bareboat chartered ships together with entry into the register costs 32 euros + 10 cents for each GT. The maximum amount is 3,200 euros.

A certificate of nationality is issued for up to two years. After that, the certificate of nationality must be renewed and the same amount paid.

The following state fee rates apply to different inspections:
  • technical surveys of a ship: 68 euros per working hour of the official, no more than 2,000 euros;
  • ship safety survey: 130 euros per working hour of the official, no more than 1,920 euros;
  • maritime safety audit of shipowners and their ships (ISM): 130 euros per working hour of the official, no more than 1,920 euros;
  • inspection of working and living conditions of crew members: 130 euros per working hour of the official, no more than 1,920 euros.

The shipowner must bear the travel costs of the official related to the inspection. Charges for inspections performed by a recognised classification society are added hereto.

Second register of bareboat chartered ships

Based on the gross tonnage of ships, the registry fee is:
  • ships with a gross tonnage of less than 5,000 – 15,000 euros per year;
  • ships with a gross tonnage of 5,000 to 19,999 – 20,000 euros per year;
  • ships with a gross tonnage of 20,000 and more – 25,000 euros per year.

A certificates of nationality is issued for a year. After that, the certificate of nationality must be renewed and the same amount paid (the Estonian Transport Administration will issue a payment notice).

The registry fee includes the state fees related to the inspection of the living and working conditions of crew members, safety surveys and maritime safety audits.

Corresponding charges apply to additional surveys and additional audits (subsection 3 of § 924 of the Law of Ship Flag and Ship Registers Act).

The registry fee does not include the expenses of a recognised classification society or the travel expenses of officials.

Ship registry

First-time registration of the ship, changing and/or adding the owner of the ship and establishing mortgage - 130 euros. The dispatch costs of the inspector related to inspections must be borne by the ship owner. Fees for inspections by an authorized classification society will also be added.

The fee must be paid as a one-time payment, before the procedure is performed.

The following state fee rates apply to different inspections:
  • technical surveys of a ship: 68 euros per working hour of the official, no more than 2,000 euros;
  • ship safety survey: 130 euros per working hour of the official, no more than 1,920 euros;
  • maritime safety audit of shipowners and their ships (ISM): 130 euros per working hour of the official, no more than 1,920 euros;
  • inspection of working and living conditions of crew members: 130 euros per working hour of the official, no more than 1,920 euros.

Please write a free form request for ship registration to estonianflag@transpordiamet.ee

The establishment of a company is not mandatory, but in order to obtain the right to fly a flag, a citizen of a contracting state of the European Economic Area or a private legal entity registered under the law of a contracting state must have a place of business or a responsible person with a place of business in Estonia.

The maximum age of the ship has not been established.

The time required to register a ship under the Estonian flag depends on the correctness of the submitted documents.

Taxes

1. Which taxes apply under so-called normal conditions (ie, if the company has not applied for the tonnage regime or the special tax regime for crew members)?

  • Income tax rate 22%.
  • The amount of tax-free income (up to 654 euros per month and up to 7,848 euros per year) depends on the person's income. In order to calculate tax-free income, a person must submit a written application to the employer or the payer.
  • In 2025, there is no income tax is on undistributed and reinvested profits. Starting from 2026, a 2% security tax will apply.
  • The social tax rate is 33%. The monthly rate on which the minimum obligation of social tax is based is 820 euros, i.e. the minimum obligation of social tax is 270,60 euros per month.
  • Unemployment insurance rates are 1.6% for the employee and 0.8% for the employer.
  • More specific information about income and social taxes can be found here.

When applying the tonnage scheme, the income tax is calculated according to the net tonnage of the ship, without taking into account the profit actually earned.

The income tax payable depends on the total tonnage and age of the ship.

The tax obligations are as follows (calculated from the 750-euro tax base):

  • Income tax 0%;
  • Social tax 150 euros per month (20%);
  • Unemployment insurance premium of 6 euros per month (0.8%), paid by the employer;
  • Unemployment insurance premium of 12 euros per month (1.6%), paid by the employee;
  • illar II accumulated pension contributions of 15 euros per month (2%), optional.

Non-EU citizens are taxed under the same conditions as citizens of European Union member states.

Crew members

1. Can the employee himself apply the special tax regime of a crew member?

The special tax regime of a crew member is state aid, and only a legal entity can apply for state aid.

However, it is possible to apply to the Tax and Customs Board for the implementation of a special tax regime on the same basis due to the principle of equal taxation (there is no state aid involved), but this request must be submitted to the Tax and Customs Board.

According to § 105 (21) of the Aliens Act, a foreigner is allowed to work on a sea-going ship sailing under the Estonian national flag, with the exception of a passenger ship that makes regular international voyages from an Estonian port, if the ship has entered an Estonian port up to 25 times in the last 365 days.

There are no separate requirements for the citizenship of crew members of a ship sailing under the Estonian flag.

The minimum composition of the crew is determined on the basis of various conditions and indicators, resulting from the regulation of the Minister of Economy and Communications.

Yes, you can. For this, it is necessary to submit the required documents. Additional information can be found on the website of the Estonian Transport Administration.

A foreign company can offer a so-called manning service, but in this case the maritime labor contract must be concluded in the name of the shipowner under the MLC (Maritime Labor Convention).

In addition, employees must be registered in the Employment Register.

We send paper certificates by post only within the borders of Estonia.

In case you cannot pick up the documents yourself, it is necessary to authorize the corresponding person.

Yes, ship's officers are obliged to familiarize themselves with Estonian legislation and requirements arising from the law.

Here you can find a list of Estonian maritime law acts that foreign ship officers must know.

As a foreign company, you can request maritime documents from Estonia if you have a written authorization (power of attorney) from the relevant ship's officers.

Please send the necessary documents and questions related to certification of seamen and seafarers to the e-mail: mdb@transpordiamet.ee

More information about certificates can be found here.

We accept all health certificates from doctors approved by the relevant national authorities, but only after verification.

You can find additional information about health check-ups in Estonia here.

Tonnage scheme

1. Do you have to apply the tonnage scheme and the special tax regime for crew members together?

No, you don’t have to but it is possible.

The tonnage scheme can be applied by a resident company, provided that it meets the terms and conditions established in § 521 of the Income Tax Act, e.g.:

1. a shipowner if they are a resident company and the strategic, business and technical management decisions related to the operation of the ship are made in Estonia;

2. a provider of technical ship management services if they are a resident company and make technical management decisions in Estonia, or;

3. a provider of crew management services if they are a resident company and make crew management decisions in Estonia.

For more information on the application of the tonnage scheme, see here.

The tonnage scheme can be applied when:
  • the total gross tonnage of the ship is at least 500 GT;
  • the ship is flying the flag of a Contracting State of the European Economic Area;
  • the ship is one of the following:
    1) a ship used for international carriage of goods or passengers by sea, except passenger ships engaged in regular service in the European Economic Area;
    2) a dredger or a tugboat, provided that the terms and conditions of subsection 6 of § 13 of the Income Tax Act are also met.

To apply the tonnage scheme, a resident company must submit an application detailing the activity based on which they wish to apply the tonnage scheme, as well as the data of the ship and the person implementing the tonnage scheme. The application must be sent to: estonianflag@transpordiamet.ee.

The application can be found here.

Yes, you can.

For more information on the application of the tonnage scheme, see here.

If you have any further questions please contact: estonianflag@transpordiamet.ee

Last updated: 08.01.2025

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