Real estate investment in Estonia

Foreigners can freely buy and sell apartments in Estonia. Buying land with a house is not allowed in all areas. A legal entity can buy a land plot with a house without restrictions if it’s an Estonian company.

Statistics confirm the liquidity of investments: residential real estate prices grow every quarter by an average of 2.4%. Five years ago, an apartment of 100 m² cost an average of €183,000, and today it is sold for €273,000.

€2,734 Average price per 1 m²
of housing in Estonia

2,4% Average price per 1 m²
increase per quarter

2,6—5,6% Buyers’ related expenses,
of the transaction amount

How the residential property price index is growing in Estonia

Cost of a 3-bedroom apartment in Estonia

€1 million

Attic apartment in the historical centre of Tallinn

€650,000

Apartment within a 10-minute drive
from the Town Hall Square

€300,000

Apartment in Tartu

What do investors buy?

Properties in the capital, Tallinn, and the second largest city in Estonia, Tartu, are in high demand.

Apartments

penthouses and attic apartments
apartments

Houses

townhouses
villas
mansions

Estonia residence permit or citizenship by real estate investment

Obtaining an Estonia residence permit or citizenship is not connected with purchasing real estate.

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Taxes and associated costs

Purchase

Ownership

Sale

Property buyers pay a state duty and additional fees.

Associated costs range between 2.6% and 5.6% of the purchase agreement value. When buying an apartment worth €500,000, the investor will spend €513,000, including additional costs.

2.6—5.6% Of the contract value are related costs for the purchase of housing in Estonia

Purchase expenses

Stamp duty

Depends on the transaction amount

0.3—0.5%

Of the transaction amount

Notary fee

Depends on the transaction amount

0.02—0.84%

VAT included

Registration fee

0.25%

Agency fee

Depends on the transaction amount

2—4%

Taxes

Estonia has no annual property tax, but there is a land tax. Apartment owners pay the land tax for the land plot under an apartment building.

The income tax of 21% is paid on rental earnings.

€2,124 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection

€128—250

per month

Internet, TV and telephone

€16—34

per month

Real estate sellers pay a capital gains tax of 21% on the difference between the sale and purchase prices.

21% Capital gains tax on the sale of
real estate in Estonia

Elena Garnitsarik

Prepared a guide on investing in real estate in Estonia

Real estate investment in Estonia

How the residential property price index is growing in Estonia

Cost of a 3-bedroom apartment in Estonia

Estonia residence permit or citizenship by real estate investment

40+ guides on European countries

Get a real estate market analysis of all European countries

Taxes and associated costs

Stamp duty

0.3—0.5%

Notary fee

0.02—0.84%

Registration fee

0.25%

Agency fee

2—4%

Taxes

Communal payments

Electricity, gas, water, heating, and garbage collection

€128—250

Internet, TV and telephone

€16—34

Check if real estate in these countries suits your goals