How can I pay myself board member remuneration (operating in Estonia)?

If you operate your company in Estonia on a permanent basis and are a tax resident there, the following principles apply to board member remuneration payments.

When and how much to pay

You can receive a board member remuneration any time, regularly per month, or as a once-off performance bonus. It's up to you how you decide to do it. There's no obligation to pay yourself board member remuneration on a regular basis. It’s reasonable to argue that when a business is still in its infancy, the company can’t afford to pay out anything.

There's no maximum for the board member remuneration either, and you can change the sums you pay and the frequency of payments whenever you like in the future - it's your agreement with your company (you're sitting in both chairs).

Please note that if you plan to distribute dividends, you are usually also expected to pay yourself a reasonable salary for your active involvement in the company. For more details, see the Xolo FAQ article Why do I have to pay salary when I pay dividends?

Board member remuneration payment process

1. Make the payment from the company account, indicating ‘Board member remuneration’ in the payment description, as we can detect the necessary information on your bank statement. 
2. Ensure that the transaction details are available to us no later than the 5th day of the following month.
3. We will register you in the Estonian Employment Register.
4. We will calculate and declare the applicable taxes and inform you of the amounts and deadlines. Taxes must be declared and paid by the 10th of the following month. Timely payment is important, as late payments are subject to interest (0.06% per day).
5. You should have a board member agreement (between you and your company) signed digitally. We can share a potential draft, or you can search for a suitable option HERE.
   

Board member remuneration differences

• Enables flexibility - there's no requirement to pay a minimum salary each month, in contrast to an employee salary, which has a minimum of €886 (€946 gross per month starting from 1st of April 2026), and failing to pay this triggers an additional social tax payment of €292.38 per month (€270.60 until Dec 31, 2025)
• No unemployment benefits (in contrast to an employee's salary)
• Social security in Estonia is granted with a minimum of €886 (€820 until Dec 31, 2025) paid as board member salary and/or employee salary (gross amount).