Buying Properties in Estonia Tax Guide & Cost Checklist

John Philips
Jul 22
2 min read

Why Know the Costs Up-Front?

Unexpected fees can erode your return on investment fast. Below is a copy-and-paste-ready rundown of every major tax and running cost you’ll face when buying properties in Estonia—plus how Bryan Estates helps you trim the fat.

1. One-Time Purchase Costs

Item	Amount / Rate	Notes
Notary fee	0.1 – 0.4 % of sale price	Sliding scale; half paid by each party unless agreed otherwise
State fee (Land Register)	€20 – €100	Fixed by cadastral value
Mortgage arrangement	~0.5 % of loan	Waived on some fixed-rate promos
Valuation report	€200 – €450	Required for bank financing
Legal translation	€30 – €60 /page	Needed if you don’t speak Estonian
Total closing cost	≈ 2-3 % of purchase price	Budget this buffer to stay safe

2. Annual Taxes & Recurring Charges

Cost	Typical Range	How It’s Calculated
Land tax	0 – 2.5 % of land value	Primary homes in Tallinn often 0 %
Building insurance	0.04 – 0.07 % insured sum	Mandatory with a mortgage
Apartment association fee	€0.70 – €1.80 /m²	Covers maintenance, cleaning, reserve fund
Utility bills	€1.50 – €3.00 /m² in winter	District heating adds seasonality
Income tax on rent	Flat 20 % after deductions	Furniture, repairs, and agent fees are deductible

3. Smart Ways to Reduce Your Tax Bill

Declare it your primary residence for at least two years to pay zero land tax in many municipalities.
Opt for energy-efficient renovations—grants cover up to 30 % and lower utility costs.
Use Estonia’s e-Tax portal to pre-fill deductions; no accountant needed for basic rentals.
Bundle insurance (home + landlord liability) for multi-property discounts.
Leverage Bryan Estates’ maintenance team to get VAT-registered contractor rates and deduct the full amount.

4. Hidden Fees Most Buyers Forget

Elevator reserve fund in buildings over 5 floors.
Annual chimney inspection for houses with solid-fuel stoves.
Short-stay licence fee if you plan Airbnb rentals in Tallinn Old Town.
Bank SEPA transfer fees when repatriating rental income outside the EU.

5. How Bryan Estates Keeps Costs Predictable

Fixed-price closing packages—know every euro before you sign.
Bulk insurance contracts that shave up to 15 % off annual premiums.
Automated e-Tax reporting integrated with our property-management portal.
Preferred contractor network for energy upgrades and routine repairs.

Frequently Asked Questions

Do foreigners pay higher taxes? No—rates are identical for residents and non-residents.

Is there a property transfer tax? No. Only the low state fee and notary charge apply.

What happens if I sell within five years? Capital-gains tax applies at 20 %, but is exempt if it was your primary residence for at least two consecutive years.