Buying Properties in Estonia: Company‑Structure & Tax‑Optimisation Guide

1 | Why Use a Company (OÜ) Instead of Your Own Name?

• Tax deferral —corporate profits untaxed until distributed as dividends (0 % vs personal 20 %).

• Liability ring‑fence —SPV shields personal assets from tenant or lender claims.

• Financing flexibility —banks lend up to 65 % LTV to property OÜs, higher for portfolio holdings.

• Share‑sale exit —sell company shares, not asset, to avoid notary fees & VAT clawback.

2 | Popular Structures & When to Use Them

Structure	Best For	Key Features	Drawbacks
Single‑property OÜ (SPV)	Flip or isolated rental	Clean books, easy share sale	Extra admin per unit
Holding OÜ + sub‑SPVs	Portfolio ≥ 3 units	Central cash pool; group VAT	Complex accounting
Joint‑venture OÜ	Partner deals	Shareholder pact governs rights	Disputes if roles unclear
Management company OÜ	Fee income from PM services	Salaries taxed separately	Extra payroll compliance

3 | Setting Up an OÜ in 24 Hours

1. Obtain e‑Residency card (if abroad).

2. Register company online via e‑Business Register (€265 state fee).

3. Share capital: min €1 (can defer payment).

4. Open Euro IBAN at LHV / Wise Business.

5. Apply for VAT number if revenue > €40 k or you want input VAT reclaim.

4 | Tax Workflow at a Glance

Event	Corporate Tax	Personal Tax
Rental income inside OÜ	0 % until dividend	—
Dividend pay‑out (standard)	20 % of gross	0 % (foreign owners) / 7 % in Estonia if reinvested cycle used
Reduced dividend (3‑yr avg)	14 %	Extra 7 % withholding for individuals
Share sale	0 % in OÜ	20 % CGT if personal shareholder

Pro tip: Reinvest profits for 3 yrs; subsequent dividends taxed at 14 % corporate rate.

5 | Accounting & Reporting Obligations

Obligation	Frequency	Cost (€)
VAT return (if registered)	Monthly	40–60 via accountant
Annual report	Yearly	300–600
Payroll & TSD (if salary)	Monthly	20 per employee
Licence fee (PM company)	Annual	0 €—none required

Bank‑compatible cloud tools—Merit Palk, SmartAccounts—integrate with e‑Tax.

6 | Financing Tricks with Corporate Structures

• Parent guarantee—holding OÜ guarantees SPV loan to unlock 75 % LTV.

• Inter‑company loan—move cash from profitable unit to new acquisition interest‑free.

• Dividend stop clause—bank may require; renegotiate after LTV drops < 60 %.

7 | Common Mistakes & How to Avoid Them

Mistake	Consequence	Fix
Mixing personal & OÜ expenses	Audit red flags	Separate cards & IBANs
Ignoring thin‑capitalisation test	Disallowed interest deduction	Maintain equity ≥ 25 %
Paying rent to yourself w/o market rate	Transfer‑pricing penalty	Use valuer’s rental report
Forgetting timely VAT filings	0.06 % daily interest	Automate accountant reminders

8 | Exit Strategies & Tax Implications

Exit	Tax Impact
Asset sale	Buyer pays notary + 0 % VAT (if resale)
Share sale	No land‑registry fee; lower buyer tax
Merger into holding	Tax‑neutral

9 | Bryan Estates Corporate‑Setup Package

• E‑Residency, OÜ registration & bank intro in 48 h.

• VAT & accounting stack integration (Merit + SmartAccounts).

• Shareholder agreements & SPV templates.

• Annual tax‑optimisation review—average €3 k savings per client.

Frequently Asked Questions

Is nominee director allowed?

Yes, but banks prefer at least one real shareholder on board; KYC strict.

Can I depreciate property inside OÜ?

Yes—4 % straight‑line; offsets future corporate tax when you eventually pay dividends.

Do I need double‑entry books for each SPV?

Yes, but cloud software clones chart of accounts—minimal extra effort.

Want a Tailored Company‑Structure Blueprint?

Email info@bryanestates.ee or call +372 123 4567 for a one‑hour strategy session and fixed‑fee incorporation quote.