Estonia approved the signing of its first income and capital tax treaty with Liechtenstein on 8 May 2025. The agreement was initialled on 17 November 2023 following the conclusion of negotiations.

A tax treaty, also known as a Double Tax Agreement (DTA), is a bilateral arrangement between two countries designed to address and eliminate the problem of double taxation on both passive and active income. These treaties typically outline the extent to which each country can tax a person’s income, capital, estate, or wealth. It will take effect once signed and ratified by both countries.

This will be the first treaty of its kind between the two nations and will require signing and ratification before it can take effect.