Under Estonian tax law, certain costs are not considered deductible business expenses. These include personal expenditures such as food and drinks for private use, clothing or laundry services, everyday fuel for a personal vehicle, and rent or utilities for your home.
Expenses related to personal lifestyle — like holidays, costs for family or friends, personal healthcare or insurance for private use — are also not allowed.
Additionally, while business lunches can technically be recorded as expenses, they are subject to fringe benefits tax of approximately 70%, making them less beneficial.
Other non-deductible costs include purchases or maintenance of property (including offices) abroad, and vehicles registered in another country.
In short: if the expense is personal, for private benefit, or not directly tied to your Estonian business operations, it is likely not deductible.
If you’re in doubt, please contact us beforehand at support@xolo.io.