Buying Properties in Estonia: Property Tax & Municipal‑Fee Guide
- John Philips
- Aug 13
- 2 min read
Updated: Nov 14
1 | Key Takeaways
No stamp duty on real‑estate transfers in Estonia—great news for buyers.
The main recurring charge is Land Tax (Maa‑maks), set municipally.
Expect small but vital municipal fees: waste collection, street‑lighting levies, and notary costs at closing.
2 | Land Tax Explained
Component | Detail |
Base | Tax applies to land value only (buildings untaxed). |
Rate | 0 %–2.5 % of cadastral value, set by municipality. |
Primary‑home discount | Up to 100 % exemption for first 0.15 ha in urban areas or 2 ha in rural parishes. |
Payment schedule | Annual invoice mailed in February; pay in 1 or 2 instalments (March / October). |
Example: Tallinn Lasnamäe 200 m² apartment plot share valued at €10 000 × 0.7 % = €70/year.
3 | One‑Off Closing Costs
Cost | Amount | Notes |
Notary fee | 0.1 %–0.4 % of price (sliding scale) | Split 50/50 common |
State‑register fee | €20–€100 | Typically buyer pays |
Mortgage registration | €32 (flat) | Buyer’s bank loan |
Bank arrangement fee | 0.5 % loan (capped €500) | Financing only |
No stamp duty, but notary & state fees total ~0.3 % of purchase price on average.
4 | Municipal Service Fees
Service | Typical Monthly Cost | Billing |
Waste collection | €6–€12 per unit | HOA invoice or direct |
Snow removal (private drive) | €0.20–€0.30 /m² (winter months) | HOA / contractor |
Street‑lighting levy (specific parishes) | €5–€10 per year | Added to land‑tax bill |
Water connection standing charge | €6–€10 | Tallinna Vesi / Tartu Veevärk |
Rural plots may pay private well & septic maintenance instead of municipal water/waste.
5 | VAT & Residential Property
Scenario | VAT Status | Rate |
New build (< 3 yrs, first sale) | VAT‑able | 22 % included in list price |
Resale (> 2 owners or > 3 yrs) | Exempt | — |
Rental income (annual > €40 k) | Must register VAT | Charge 22 % on rent |
Buying via VAT‑registered OÜ allows input VAT reclaim on new builds & renovations.
6 | Tax‑Saving Tips
Register primary residence to eliminate land tax.
Itemise renovation invoices—offset future capital‑gains tax.
Use e‑Invoice for municipal bills; many banks waive payment fees.
Bundle waste & snow contracts through HOA for bulk discounts (–10 %).
7 | Penalty & Interest Table
Late Payment | Penalty |
Land‑tax delay ≤ 30 days | 0.06 % interest per day |
Municipal waste non‑payment | Service suspension + €10 fee |
Notary fee underpayment | Contract invalid until settled |
Set calendar reminders every March 15 and October 15 to avoid penalties.
8 | How Bryan Estates Keeps You Compliant
Automated land‑tax reminders & payment via escrow account.
Audit of municipal invoices—identify overcharges (avg. 5 % refund).
VAT registration & quarterly filings for OÜ‑owned rentals.
Investor dashboards tracking ROI net of all taxes & fees.
Frequently Asked Questions
Do foreigners pay higher land tax?
No—rates are identical for all owners; exemptions depend on residence status, not nationality.
Is there capital‑gains tax on primary residence?
0 % if you live there ≥ 2 yrs; investment properties pay 20 % on net gain.
Are Airbnb guests subject to tourist tax?
Estonia has no tourist tax; only standard VAT if turnover exceeds €40 k.
Need a Personalised Tax Projection?
Email info@bryanestates.ee or call +372 123 4567 for a line‑by‑line tax & fee forecast tailored to your target property.
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