Buying Properties in Estonia: Company vs Personal Ownership Explained

Why the Structure Matters

The way you hold title affects tax, liability, financing, and exit strategy. Estonia’s entrepreneur-friendly laws make the OÜ (private limited company) a popular vehicle for foreign investors, but personal ownership still suits many buyers.

1. Quick Comparison Table

Factor	Personal Ownership	OÜ Company Ownership
Capital-gains tax	20 % (0 % on primary residence)	14–20 % distributed profits; 0 % if reinvested
Rental income tax	20 % after deductions	0 % if retained; 14–20 % when paid as dividends
Mortgage LTV	Up to 70 %	60 – 65 %, extra corporate due diligence
Liability	Personal	Limited to share capital (€2,500 min)
Accounting	Annual tax return	Monthly VAT & annual reports
E-Residency compatibility	Optional	Highly synergistic

2. When Personal Ownership Shines

1. Primary residence—capital-gains exemption after two years of occupancy.

2. Single rental unit—simpler paperwork; file once per year.

3. Lower financing hurdles—banks approve retail mortgages faster.

3. Advantages of an OÜ Company

• Tax-free reinvestment—pay 0 % on profits kept inside the company.

• Asset segregation—protects personal wealth from tenant or lender claims.

• Multiple investors—issue shares to partners without title splits.

• VAT reclaim—on renovations if annual turnover exceeds €40k.

Pro Tip: Pair an OÜ with Estonia’s e-Residency to sign documents and open EU bank accounts remotely.

4. Costs & Compliance for OÜs

Expense	Typical Range
Company formation (one-off)	€190 state fee + €100–€200 notary
Annual report filing	€150 – €300 via accountant
Monthly bookkeeping	€50 – €120 (mandatory if VAT-registered)
Dividend tax	14 % (regular) or 20 % (if infrequent)

5. Financing Considerations

• Higher down payment—banks view corporate loans as higher risk.

• Interest rates roughly +0.3 pp compared to personal loans.

• Personal guarantee may still be required for single-shareholder OÜs.

6. Exit Strategy & Resale

• Personal title—straightforward sale; pay capital-gains tax unless exempt.

• OÜ sale—option to sell property or entire company shares (no land-register change), potentially saving the buyer notary fees.

7. How Bryan Estates Helps You Decide

• Tax impact modelling—side-by-side 10-year projections.

• Bank liaison—secure both personal and corporate mortgage quotes.

• Turn-key company setup—formation, bookkeeping, and e-Residency support.

• Legal compliance audit—ensures your structure meets EU anti-money-laundering rules.

Frequently Asked Questions

Can I switch from personal to company ownership later?

Yes, by selling or donating the property to your OÜ—expect notary fees and possible transfer taxes.

Do I need local directors for an OÜ?

No. One shareholder-director is enough, and you can manage remotely via e-Residency.

Is VAT always reclaimable on renovations?Only if your OÜ is VAT-registered and the renovations relate to taxable rental or sale activities.

Still Unsure Which Route Fits You?

Email info@bryanestates.ee or call +372 123 4567 for a personalised ownership-structure consultation.