Estonian Company Run from Spain: Tax Residence

Many entrepreneurs in Spain, often e-residents, form or buy an Estonian private limited company (OÜ) and run it from home. That works, but Spanish law looks at where a company is directed, not only where it is registered — and the tax treaty between Spain and Estonia, as amended by the multilateral convention, settles a double residence in a way that can leave a company without the treaty's benefits. This guide sets out both, with the official texts, and what we do on the Estonian side.

The guide is general information, not tax advice. How your company is taxed depends on the facts of your case; ask a Spanish tax adviser (asesor fiscal) before you form or buy the company. The Corporate Tax Act was read in the Boletín Oficial del Estado (BOE) and the treaty in the synthesised text published by the Spanish Ministry of Finance, on 16 October 2026.

In Estonia: an Estonian company is Estonian

A company established under Estonian law is resident in Estonia for tax purposes (Income Tax Act § 6). Its profit is taxed when it is distributed, not while it stays in the company — the guide how Estonia taxes company profit explains the rule. The company keeps its Estonian duties wherever its owners live: accounts, an annual report to the commercial register and, if its address is abroad, a contact person in Estonia.

In Spain: where the company is directed

The rule. An entity is resident in Spain if it was formed under Spanish law, has its registered office in Spain, or has its place of effective management (sede de dirección efectiva) in Spain (Ley 27/2014 del Impuesto sobre Sociedades, article 8(1)).
Where effective management is. An entity has its place of effective management in Spain when the direction and control of all of its activities lie there (article 8(1)).

An OÜ whose only director lives in Spain and directs the business from there is therefore exactly the case this rule looks at. Whether the company is in fact directed from Spain is a question of fact, assessed by the Spanish tax administration (Agencia Tributaria).

What the Spain–Estonia tax treaty says

Resident in both countries. If a company is resident in both states, the competent authorities try to settle the case by mutual agreement, taking into account the place of effective management, the place of incorporation and any other relevant factors. If they reach no agreement, the company is not entitled to the treaty's benefits (treaty of 3 September 2003, article 4(3), as modified by the multilateral convention, MLI).
Permanent establishment. A permanent establishment is a fixed place of business through which an enterprise carries on all or part of its activity; it includes in particular a place of management, a branch and an office (article 5(1) and (2)). Profit attributable to a permanent establishment in Spain can be taxed in Spain (article 7(1)).

What to decide before you form or buy the company

Who directs the company, and where. Where the direction and control of its activities actually lie is the fact both the Spanish Act and the treaty look at.
Where the work is done. An office or other fixed place of business in Spain can be a permanent establishment.
Ask first. A Spanish tax adviser can assess your plan before you start.

What we do on the Estonian side

online formation for an e-resident — €950 Registered address and contact person service for one year are included., or formation by power of attorney — €1,250;
a ready-made company bought remotely — €1,200 Registered address and contact person service for one year are included.;
accounting — from €150 / month and the annual report — from €450;
the registered address and contact person after the first 12 months — €350 / year.

Our accounting covers the Estonian company's Estonian obligations. Spanish tax returns and Spanish tax advice are not included. The same question for owners in other countries: Germany, Poland, Finland, Italy.

Prices exclude VAT. All communication takes place by email.

Ready to start? A new Estonian company — online for e-residents or by power of attorney; Spanish tax advice is not included. Order.

Official sources

The laws this article names, by the name of their official text, as read on 9 October 2026. For the Estonian acts we read the English translation in Riigi Teataja; the legally binding text is the Estonian one.

Income Tax Act — Riigi Teataja, English translation

Sources are named in the text, without links. To see which of our services your company needs, open the Business Navigator.

Frequently asked questions

Is my Estonian company taxed in Spain if I run it from Spain?

It can be. An entity is resident in Spain if its place of effective management is there — where the direction and control of all its activities lie (Ley 27/2014, article 8(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Spain–Estonia tax treaty as modified by the multilateral convention, the two tax administrations settle such a double residence by mutual agreement, and without an agreement the company gets no treaty benefits (article 4(3)). Ask a Spanish tax adviser before you form or buy the company; we handle the Estonian side.

Estonian company run from Spain: where it is taxed