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

John Philips
2 days ago
3 min read

1 | The Big Picture (2025)

If you’re buying properties in Estonia for Airbnb-style stays, you’re treated as an accommodation service under the national framework (Tourism Act). That brings basic safety/consumer-protection duties and guest-registration requirements. Platforms will also share booking data with authorities under a new EU data-sharing regulation—so operate fully compliant from day one.

2 | National Rules You Must Know

A. Accommodation service obligations (Tourism Act):

Register each guest from their ID/passport before providing accommodation.
Meet the accommodation-type standards (e.g., safety, clarity of information to travellers).

B. Data reporting (EU 2024/1028):

Platforms (e.g., Airbnb/Booking) will collect and transmit host & booking data to authorities to improve transparency and enforcement. Expect fewer “informal” listings.

C. Taxes:

Income tax: from 1 Jan 2025, Estonia’s personal income-tax rate is 22%; applies to STR income of resident individuals.
VAT: register if your Estonian-sourced turnover exceeds €40,000; standard VAT rate is 24% (from 1 Jul 2025). Many hosts stay below the threshold; OÜ companies often register voluntarily to reclaim input VAT on renovations/furnishings.

3 | City-Level Developments (Tallinn Example)

Tallinn has publicly announced plans to restrict short-term rentals in the Old Town as part of a new development plan. The method is still being worked out, but investors should budget for potential caps or permit zones in heritage districts. Keep an eye on council updates before exchanging contracts.

4 | Practical Setup Checklist (Copy/Paste)

☐ Confirm building/HOA rules (some houses restrict stays < 30 days).
☐ Choose structure: personal name or OÜ (company).
☐ Tax setup: EMTA account; consider VAT if near €40k turnover.
☐ Guest-registration workflow (scan IDs; store securely) per Tourism Act.
☐ Safety basics: smoke/CO alarms, extinguisher, evacuation plan.
☐ Contract & house rules (quiet hours, max occupancy, smoking).
☐ Insurance: landlord/STR cover incl. loss-of-rent.
☐ Data readiness: expect platform-to-authority reporting under EU rules.

5 | Money Matters: What Changes with STRs

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)

6 | Risk-Reducer Tips for Investors

Underwrite two scenarios (STR and 12-month lease) so the deal still works if rules tighten.
Track council agendas for heritage districts before you commit.
Automate guest-ID capture and consent to align with Tourism Act duties.
Watch the VAT line—if you’ll cross €40k, plan pricing and invoices accordingly.

7 | Bryan Estates STR Starter Pack

Compliance review (Tourism Act + local by-laws) with English summary.
Guest-registration SOP and privacy templates.
Tax & VAT readiness plan with breakeven at the €40k threshold.
Insurance comparison tailored to short-lets.

Frequently Asked Questions

Does Estonia require a national STR licence?

There’s no single “national Airbnb licence”, but you are an accommodation service under the Tourism Act and must follow its rules (guest registration, safety, consumer information). Some cities or buildings may impose extra conditions.

Is there a tourist tax?

No national tourist tax. Your main exposures are income tax (22%) and VAT if your turnover exceeds €40k.

What’s changing at EU level?

Regulation (EU) 2024/1028 forces platforms to share STR data with authorities, improving enforcement on unregistered hosts.