Buying Properties in Estonia: Short-Term Rental & Airbnb Compliance Guide

John Philips
Jul 22
2 min read

Why Focus on Short-Term Rental Rules?

Estonia’s tourism rebound and digital-nomad influx make holiday lets lucrative—if you stay compliant. Failing to register or pay the correct taxes can lead to fines and licence revocation.

1. Licensing Snapshot (2025)

City / Region	Licence Needed?	Issuer	Typical Fee
Tallinn	Yes (Accommodation Services Licence)	Tallinn City Government	€75 first unit, €30 each additional
Tartu & Pärnu	Yes (Municipal notification)	Local gov’t	€50 – €70
Rural counties	Often no, but must notify Statistics Estonia	Local parish	Usually free

Tip: Apply online via the Estonian e-Government portal; approval takes 5–10 business days.

2. Key Regulations to Know

90-Day Cap? Tallinn has no annual night cap (unlike many EU cities) but monitors occupancy to curb noise complaints.
Guest Registry – All hosts must upload guest data to the Police & Border Guard Board within 24 h of check-in.
Safety Equipment – Smoke detectors, fire blanket, and CO detector (for gas/solid-fuel properties) are compulsory.
Insurance Clause – Landlord liability of at least €32 000 is required in Tallinn licences.
Energy Label Display – Class rating must be shown in listings for buildings completed after 2013.

3. Tax & VAT Considerations

Turnover (Last 12 Months)	VAT Registration	Rate
≤ €40 000	Optional	–
> €40 000	Mandatory	22 % (2025 rate)

Rental income tax: flat 20 %; deduct cleaning, platform fees, utilities.
Local tourist tax: None nationwide—good news for margins.

4. Profit-Boosting Strategies

Self-check-in via smart locks – attracts late-arrival guests, reduces staffing.
Mid-stay cleaning upsell – charge €20–€30 for optional refresh in longer bookings.
Digital nomad bundles – high-speed 1 Gbps internet, monitor, ergonomic chair can justify +10 % nightly rate.
Seasonal pricing tool – align with cruise-ship calendar (May–September peak).

5. Risk Management

Add a loss-of-rent rider to your building insurance.
Install noise sensors; Tallinn fines start at €200 for repeat disturbances.
Use deposit pre-authorisations via Airbnb or Booking.com to cover minor damage.