The Commission has formally requested Estonia to amend its tax legislation for what the Commission sees as discrimination against non-resident investment funds.

Under Estonian tax law, domestic investment funds are treated more favourably than comparable investment funds established in other EU Member States or in countries of the EEA. According to the Commission, resident funds are entitled to get a tax exemption for their real estate income, while comparable funds established in other EU Member States and EEA countries are subject to tax. The Commission therefore considers that Estonia does not comply with EU rules, in particular Articles 56 (freedom to provide services) and 63 (free movement of capital) of the Treaty on the Functioning of the EU (TFUE) and Articles 36 and 40 of the European Economic Area Agreement (EEA).

The Commission's request takes the form of a reasoned opinion (second step of EU infringement proceedings). In the absence of a satisfactory response within two months, the Commission may refer Estonia to the EU's Court of Justice.