Your Guide to Buying Properties in Estonia for Short-Term Rentals
- John Philips
- Aug 21
- 3 min read
Updated: Nov 13
Understanding the Landscape of Short-Term Rentals
If you’re buying properties in Estonia for Airbnb-style stays, you’re classified as an accommodation service under the national framework (Tourism Act). This classification comes with specific safety and consumer-protection duties, as well as guest-registration requirements. Additionally, platforms will share booking data with authorities under a new EU data-sharing regulation. Therefore, it's crucial to operate fully compliant from day one.
Essential National Rules to Know
A. Accommodation Service Obligations (Tourism Act)
You must register each guest from their ID or passport before providing accommodation.
Ensure you meet the accommodation-type standards, which include safety measures and clarity of information for travellers.
B. Data Reporting (EU 2024/1028)
Platforms like Airbnb and Booking.com will collect and transmit host and booking data to authorities. This is aimed at improving transparency and enforcement, leading to fewer “informal” listings.
C. Taxes
Income Tax: Starting from 1 Jan 2025, Estonia’s personal income tax rate will be 22%. This applies to short-term rental income for resident individuals.
VAT: You need to register if your Estonian-sourced turnover exceeds €40,000. The standard VAT rate is 24% (effective from 1 Jul 2025). Many hosts remain below this threshold, but OÜ companies often register voluntarily to reclaim input VAT on renovations and furnishings.
City-Level Developments: A Closer Look at Tallinn
Tallinn has announced plans to restrict short-term rentals in the Old Town as part of a new development strategy. The method is still being worked out, so investors should budget for potential caps or permit zones in heritage districts. It’s wise to keep an eye on council updates before finalising any contracts.
Practical Setup Checklist for Your Short-Term Rental
Here’s a handy checklist to ensure you’re on the right track:
☐ Confirm building/HOA rules (some houses restrict stays to a minimum of 30 days).
☐ Choose your structure: personal name or OÜ (company).
☐ Tax setup: Open an EMTA account; consider VAT if you’re nearing €40k turnover.
☐ Guest-registration workflow: Scan IDs and store them securely, as required by the Tourism Act.
☐ Safety basics: Install smoke and CO alarms, have an extinguisher, and create an evacuation plan.
☐ Contract & house rules: Clearly outline quiet hours, maximum occupancy, and smoking policies.
☐ Insurance: Ensure you have landlord/STR cover, including loss-of-rent protection.
☐ Data readiness: Prepare for platform-to-authority reporting under EU rules.
Money Matters: Understanding Changes with Short-Term Rentals
| Topic | Long-Term Lease | Short-Term Rental |
|---------------------------|----------------------------------|-------------------------------------------|
| Tax rate (individual) | 22% on net rent | 22% on net STR income (from 2025) |
| VAT exposure | Often below threshold | Can exceed €40k—then 24% VAT applies on eligible supplies |
| Paperwork | Lease + deposit rules | Guest-registration + consumer info (Tourism Act) |
| Regulation risk | Lower | Higher in tourist cores (e.g., Tallinn Old Town plans) |
Risk-Reducer Tips for Investors
Underwrite two scenarios: Consider both STR and a 12-month lease. This way, your deal remains viable even if regulations tighten.
Track council agendas for heritage districts before you commit to a purchase.
Automate guest-ID capture and consent to align with your obligations under the Tourism Act.
Watch the VAT line: If you anticipate crossing €40k, plan your pricing and invoices accordingly.
Bryan Estates STR Starter Pack
To help you navigate the complexities of short-term rentals, we offer a comprehensive STR starter pack, which includes:
A compliance review (Tourism Act + local by-laws) with an English summary.
Guest-registration SOP and privacy templates.
A tax and VAT readiness plan with breakeven analysis at the €40k threshold.
An insurance comparison tailored to short-term lets.
Frequently Asked Questions
Does Estonia require a national STR licence?
There isn’t a single “national Airbnb licence.” However, you are classified as an accommodation service under the Tourism Act and must adhere to its rules, including guest registration, safety measures, and consumer information. Some cities or buildings may impose additional conditions.
Is there a tourist tax?
No national tourist tax exists. Your main financial obligations are income tax (22%) and VAT if your turnover exceeds €40k.
What’s changing at the EU level?
Regulation (EU) 2024/1028 mandates platforms to share STR data with authorities, enhancing enforcement against unregistered hosts.
Ready to Launch Your Short-Term Rental?
If you’re looking for a tailored go-to-market plan for your STR, feel free to reach out. Email info@bryanestates.ee or call +372 123 4567 for a property-specific STR compliance and tax setup checklist.
With the right preparation and guidance, you can successfully navigate the short-term rental landscape in Estonia. Let’s make your property investment journey a rewarding experience!