Taxes are rising

Several taxes will rise in 2025 as the government strives to reduce the deficit and increase defense spending.

The first is income tax on January 1, which rises from 20 percent to 22 percent. VAT will increase from 22 percent to 24 percent later in the year on July 1.

State fees for e-Residency and excise duties on alcohol, tobacco, and fuel will all rise this year too.

Read an overview of the tax changes here and see information about e-Residency here.

Car tax enters into force

From January, a two-part vehicle tax will be introduced in Estonia.

The first part is a registration fee, payable when a vehicle is first registered or changes ownership in the national traffic registry.

The second is annual motor vehicle tax, based on parameters such as weight and CO2 emissions.

See how much it will cost you here.

Funded pension contribution rate changes

From January, your funded pension contribution can rise to 4 percent or 6 percent. The default rate is 2 percent.

Read more here.

Estonia scraps 1 and 2 cent coins

From January, Estonian stores will start rounding cash transactions to the nearest 5 cents and 1 and 2 cent coins will not be handed out as change. Card transactions will not be affected.

See more information here.

Electricity prices likely to rise

No one knows the exact figure yet, but after the damage to the EstLink 2 cable connecting Estonia and Finland, electricity prices are expected to rise until repair work is completed next summer.

Tallinn Year of Sport

Tallinn will become the 25th city to hold the title of European Capital of Sport Tallinn, taking over from Genoa in Italy. The launch will be held on January 18.

The city's program is titled "One More Lap" and will spotlight a different sport each calendar month, showcasing opportunities for engagement, the city said.

More information about Tallinn's events and goals can be read here.

Year of the Estonian Book

2025 marks 500 years since the first book was published in the Estonian language.

To mark the occasion the Year of the Estonian Book will take place from Estonian Literature Day on January 30, 2025, until Mother Tongue Day on March 14, 2026.

During this time, the anniversary will be celebrated with various exhibitions, events, and other activities.

Estonia leaves Russian energy grid

On February 8, Estonia, Latvia, and Lithuania will leave the BRELL electricity grid which keeps the countries connected to Russia and Belarus.

Officials have said broken undersea electricity cables in the Baltic Sea will not stop the process.

"The basic premise of desynchronization is that it will always be safer for us to be connected to Poland rather than to Russia," said Elering's Chairman of the Board Kalle Kilk. "This process has to be carried out regardless of the circumstances."

Estonia joins the Continental Europe's energy grid

On February 9, after 24 hours as an "island" the three countries will join the Continental European energy grid. This desynchronization has been in process for over 20 years.

The Baltics are the last EU member states not connected to the European network. The switchover will not result in changes for ordinary consumers.

ESTO 2025: XIII Global Estonian Festival

At the end of June, the eighth Global Estonian Festival ESTO will take place in Tallinn, Narva and Stockholm, bringing Estonians together from across the world.

Song and Dance Festival: Kinship

From July 3-6, Estonia's biggest cultural event, the Song and Dance Festival, will take place in Tallinn bringing thousands of people together for each performance.

Tickets go on sale in January, and can sell out quickly.

Local elections

Local elections will take place in October which will allow Estonians and residents to vote for their local representatives.

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