When you turn on Interest or Stocks, you’re investing in units in non-distributing funds. If you’re an Estonian tax resident, this means you may need to report all of your worldwide income in your Estonian personal income tax return form. You may also need to pay income tax on capital gains if applicable.
Where can I get more information about how to submit a tax return?
Estonian tax residents need to report their realised capital gains on their annual personal income tax return, Form A, on or before 30 April. The tax year runs from 1 January to 31 December.
Learn more about how to submit your tax return to the Estonian Tax and Customs Board (EMTA), or see tax return forms and instructions.
When is capital gains tax due?
Capital gains tax, or income tax on capital gains, can become due when you dispose of units in the fund and you realise a gain. In other words: when you spend, send, convert, or move money to another account. It might also be possible to report losses to set against future gains.
How do I get data to report on my tax return?
To find out how much money you’ve made or lost using Interest or Stocks, you can download a tax report from your account.
To do this:
Go to your account settings via your name in the top corner
Select Statements and reports
Select Tax statement and Request tax statement
What information will the tax statement show?
The tax statement will show:
the ISIN and country of the fund
an overview of all the acquisitions and disposals
amount of holding
unit price per fund
any gains or losses realised
fees charged
Do I need to choose FIFO or WAC for the cost basis method?
There are two stock evaluation methods you can choose: First-In, First-Out (FIFO), and Weighted Average Cost (WAC).
According to the instructions that Estonian tax authorities give in Form A, you can choose either, but use the method you choose consistently.
How should I report the transactions from the tax statement?
When you open your tax statement, the overall summary shows you the consolidated summary of your capital gains across all of your funds.
The pages show you in order the acquisitions and disposals in each fund. Always double-check that the data on the report is accurate.
According to the instructions from Estonian tax authorities in Form A — you can consolidate your capital gain or loss per fund, instead of reporting all purchase and sell transactions one by one when you report it on your personal tax return. This means that if you have invested in multiple funds, you can calculate the sum of the acquisitions and disposals, and amount of units per each fund by yourself.
The funds you invest through Wise are domiciled outside of Estonia, so foreign income from capital gains is reported in box 8.2.
Can I deduct Wise fees from capital gains earned?
Yes, there may be an added fee related to the use of a securities account.
Is it possible to report my Wise Account as an investment account for tax purposes?
Yes, as of 2024 tax year, your Wise Account also qualifies as an investment account for the purposes of personal income taxation rules. Please note this applies only to Estonian tax residents.
What does an investment account for tax purposes means?
An investment account in Estonian investment and tax legislation encourages Estonian tax residents to invest more. You can do so by being able to postpone your payment of income tax on your gains, until you've used those earned gains outside of your investing — like if you've paid for a trip, or bought a new car.
Learn more about your investment account
Do I need to declare my Wise Account as an investment account?
No, you can choose to report your capital gains from Wise Interest or Stocks in the ordinary system — by reporting on box 8.2. This means paying income tax on capital gains you've earned.
Consider this option when you use your invested balance daily to send and access your money on the Wise card.
What would be the benefit of using my Wise Account as an investment account?
If you mainly use your Wise Account to invest in Wise Stocks or Interest, you can then postpone the payment of income tax on your gains until you've used your earned gains outside of investing.
How should I report a Wise Account as an investment account?
The section '6.5 Income on financial assets’ is the dedicated section on your tax return for reporting investment accounts.
Part I is about your service provider.
For ‘account number', you can use your Membership number under your profile
‘Name of the financial institution’ is ‘Wise Europe SA’, which provides your Wise Account
Part II is for reporting all of your contributions into, and payments out of, your Wise Account. Income tax is due when your payments out of your Wise Account exceed the contributions made into the Wise Account.
Can I automatically send my Wise Account data to Estonian tax authorities to prefill my personal income tax return?
No, we don't have an integration with EMTA to do this. You can download account statements and tax reports from your Wise Account, but you need to manually enter all the necessary data into your tax return.
What if I still have questions?
Consult with your tax advisor, or contact EMTA directly.
Find general guidance about taxes when using Wise Interest or Stocks.
If you have questions about your taxes or filing a return — speak to a qualified professional. Wise can’t give you advice on your personal tax situation, and this article is meant for information purposes only.