Buying, renting real estate and residence permit in Estonia: answering the most popular questions

Foreign citizens can purchase urban real estate in Estonia without any restrictions. 

However, the following conditions apply to the purchase of land and houses.

• Foreigners do not have the right to acquire land and houses located near state borders (both sea and land).
• Individuals do not have the right to buy land and forest plots with an area of more than 10 hectares.

• Individuals do not have the right to purchase real estate on the islands of Estonia. Legal entities have such an opportunity only on the condition that the board of directors of the company includes citizens of the European Union.

• Price per square meter in the city center - 3,500 - 5,000 euros

• Price per square meter outside the center - 2,600 - 3,500 euros

• Apartment with 1 bedroom in the city center 500-850 euros
• One bedroom apartments outside the center 400 - 650 euros

• Apartment with 3 bedrooms in the city center 800 - 1800 euros
• 3 bedroom apartments outside the center 650 - 1200 euros

Unfortunately, Estonia does not issue a residence permit for investment or purchase of real estate.

Today, entrepreneurs or authors of start-up projects can obtain a residence permit.

An entrepreneur must invest in the activities of a commercial association from 65.5 thousand euros or invest in his own or third-party business from 16 thousand euros.

At the same time, it is necessary to draw up and defend a business plan.

• Real estate in Estonia is owned or a long-term rental contract.
• The applicant must confirm legal income for the last six months. The amount must be at least 18 times the average gross salary in Estonia.

• The company must conduct active commercial activities for at least four months prior to the submission of documents for a residence permit.

• The real estate agent's services are paid by the seller.
• Notary fees are usually split between the seller and the buyer in half (the standard rate is 3% plus VAT on the value of the transaction). When buying a primary, the work of a notary is fully paid by the buyer.
• There is no tax on the purchase of real estate. But there is a land tax, including for the use of a plot under an apartment building. It is paid once a year. The size depends on the location, the status of the object (apartment or house) and area. On average, for a standard apartment in Tallinn, this figure is up to €100 per year.
• Estonian residents registered in this facility are exempt from paying land tax.

• The amount of the state duty for registering an object is calculated depending on the object and is 0.25% of the price. For objects in the middle price range, the total amount is no more than €200.
• Buying a house or land involves obtaining permission from the local authorities. The cost of such a document is approximately €150.
• The tax on income from the sale of real estate in Estonia is 20%. A foreign owner, even without being a resident of the country, is obliged to pay it to the Estonian treasury.