Is Estonia the lowest-tax country for MiCA crypto licenses? (2026 guide)

As we navigate evolving regulatory environments, entrepreneurs are asking whether Estonia still holds the crown for tax efficiency. While the 0% tax on reinvested profits remains a powerful draw, new competitors have emerged within and outside the European Union. Choosing the right jurisdiction requires a deep dive into both tax rates and the operational costs of maintaining a MiCA license.

LegalBison experts analyze the current tax frameworks to help you determine if Estonia is the optimal home for your Crypto Asset Service Provider (CASP). We look at how Estonia compares to Poland and Malta for EU market access. We also consider how a non-EU option like Montenegro might serve businesses that do not require immediate access to the single market.

Analyzing Estonia’s tax regime for crypto companies

The Estonian tax system is famous for its simplicity and its treatment of corporate income. Unlike most jurisdictions, Estonia does not tax profits as they are earned. Instead, it only levies corporate income tax (CIT) when a company distributes those profits to its shareholders.

The 0% advantage

The primary benefit for startups is the 0% CIT on retained and reinvested profits. This allows a crypto exchange or wallet provider to use its entire gross surplus to scale operations or upgrade IT infrastructure. This model is particularly effective for high-growth firms that do not intend to pay dividends in their early years.

The dividend reality

The situation changes when the company decides to pay out its earnings. In 2025 and 2026, the standard corporate income tax rate for distributed profits has been adjusted to 22% and 24% respectively. This is calculated as a gross-up on the net distribution, which can significantly impact the final take-home amount for investors.

2026 updates and the security tax

Estonia has introduced a new 2% security tax on corporate profits starting in 2026. This tax is calculated based on the pre-tax accounting profit of the previous financial year. Additionally, the standard value added tax (VAT) rate has been adjusted to 24% to support national priorities. Our experts at LegalBison recommend factoring these changes into your long-term financial modeling before finalizing company registration in Estonia.

The challengers: Is there a lower tax rate?

While Estonia offers a 0% rate on growth, other jurisdictions provide lower rates on realized income. For a CASP that intends to distribute profits regularly, these alternatives might be more cost-effective.

Poland: The 9% efficiency leader

Poland has become a formidable competitor for crypto businesses seeking a MiCA license in Poland. Small taxpayers in Poland can benefit from a reduced corporate income tax rate of 9%. This rate applies to companies with annual revenues below 2,000,000 EUR. For a medium-sized crypto firm, a 9% flat tax on profit can be more attractive than paying 24% on dividends in Estonia.

Malta: The effective 5% model

Malta remains a popular hub due to its sophisticated tax refund system. Although the nominal corporate tax rate is 35%, shareholders can claim significant refunds upon dividend distribution. This often results in an effective tax rate of approximately 5%. You can learn more about this complex but rewarding system on our Malta MiCA guide.

Montenegro: Outside the EU scope

Montenegro offers a highly competitive tax environment with progressive rates starting at 9% and capping at 15%. However, it is essential to note that Montenegro is not part of the European Union. Consequently, a crypto license in Montenegro is outside the scope of MiCA. This means your company cannot passport its services to the 27 EU member states. If your target market is global or regional rather than strictly European, this non-EU option remains a low-tax powerhouse.

Comparison of tax and regulatory frameworks

MiCA compliance: The hidden costs in Estonia

Tax is only one part of the financial equation for a CASP. The MiCA regulation introduces strict capital requirements that every authorized firm must maintain at all times. These funds must be segregated and cannot be used for operational expenses unless the company maintains a surplus.

Capital requirements by service class

The amount of capital required depends on the specific services your company provides. The classes are defined as follows:

• Class 1: 50,000 EUR for providing advice, receiving and transmitting orders, or executing orders on behalf of clients;

• Class 2: 125,000 EUR for exchange services and wallet management;

• Class 3: 150,000 EUR for operating a trading platform or providing custody services.

Substance requirements and local staff

Estonia is no longer a jurisdiction where you can maintain a shell company. To secure a MiCA license in Estonia, you must demonstrate significant local substance. This includes a physical office in Estonia and resident staff members in key positions. The regulator expects the Anti-Money Laundering (AML) officer and at least one director to be residents of Estonia.

LegalBison facilitates the recruitment of these local professionals to ensure your application meets these benchmarks. We also provide comprehensive support for meeting the MiCA token issuance standards.

→ See also: our guide to MiCA compliance

Why Estonia still wins for global company formation

Despite the tax increases and strict substance rules, Estonia remains a global leader for digital businesses. The digital infrastructure of the country allows founders to manage their business from anywhere in the world. This ease of management is a major factor for startups that value time as much as capital.

Digital infrastructure and e-Residency

The e-Residency program allows for the remote signing of documents and fully digital tax filing. On average, an Estonian company spends only 50 hours per year on tax compliance. This is significantly lower than the time required in other jurisdictions like Poland or Malta. Efficiency in administration translates to direct cost savings for the business owner.

Reputation and banking trust

An Estonian CASP license acts as a seal of quality in the eyes of financial institutions. Because the Estonian Financial Intelligence Unit (FIU) is known for its high standards, licensed firms often find it easier to open business accounts. This regulatory trust is essential for businesses that need to interact with the traditional fiat banking system. Many crypto licenses in Europe struggle with banking, but Estonian firms have a established track record.

Which jurisdiction fits your business model?

Estonia is a powerhouse for crypto companies, but whether it is the lowest-tax depends on your financial strategy. The 0% tax on retained earnings is perfect for aggressive scaling. However, if you want to draw profits early, Poland or Malta might offer a lower total tax burden.

Choose Estonia if: You are a high-growth startup planning to reinvest all profits into the business for several years. You value a 100% digital management experience and want the prestige of a highly regulated EU jurisdiction with full MiCA passporting rights.

Choose Poland or Malta if: You intend to pay out dividends to shareholders shortly after launch. These countries offer lower rates on distributed income that may result in a higher net profit for the owners.

Choose Montenegro if: You do not need to operate within the EU and prioritize a simple, low-tax environment outside the MiCA regulatory umbrella.

Structuring a MiCA license or a token issuance project requires careful planning to avoid regulatory pitfalls. Our team at LegalBison can help you compare these jurisdictions in detail and manage the entire licensing process from start to finish. Unsure which jurisdiction suits your business model? Contact LegalBison for a free consultation to structure your MiCA license strategy.