Legal & Tax Snapshot 2025: Airbnb in Estonia

Short-term rentals remain a strong investment opportunity in Estonia, but hosts must understand the legal and tax landscape for 2025 to operate compliantly and profitably. Whether you are a local homeowner or an international investor, knowing the rules helps you avoid surprises, protect your property, and make informed decisions about Airbnb income.

Bryan Estates provides professional guidance to ensure your Airbnb setup aligns with local requirements while maximising your rental potential.

Is Airbnb Legal in Estonia in 2025?

Yes — Airbnb hosting is fully legal in Estonia. Property owners may rent out their homes short-term as long as they follow standard municipal and national regulations.

Short-term rentals are treated similarly to other accommodation services, but building rules and apartment association policies may apply.

Key Legal Considerations for Airbnb Hosts

1. Apartment Association Rules

Many buildings in Estonia have an apartment association (korteriühistu) that may have guidelines on:

• Short-term letting

• Noise expectations

• Guest access

• Use of communal areas

Before hosting, owners should confirm their building does not restrict Airbnb-style activity.

2. Notification Requirements (Municipal Level)

Some municipalities may require hosts to notify local authorities when operating accommodation services. Requirements can vary by city, so it is important to verify local rules — especially in Tallinn, Tartu, and Pärnu.

Bryan Estates can help owners understand and prepare these steps through its advisory services.Learn more about investment support on the Invest in Estonia page.

3. Safety & Compliance Standards

Short-term rentals should meet basic accommodation safety expectations, including:

• Functional smoke detectors

• Clear fire exits

• Safe electrical systems

• Adequate insurance coverage

If hosts offer additional services (e.g., meals, transport), further regulations may apply.

Tax Snapshot 2025: How Airbnb Income Is Taxed in Estonia

Airbnb earnings are considered taxable income. Tax obligations depend on whether:

• The host is a private individual

• The host operates as a company

• The property is part of a larger investment portfolio

Below is a general overview.

1. Taxation for Private Individuals

Private hosts must report Airbnb income as rental income or business income, depending on activity level.

Rental Income

If the hosting is occasional or secondary:

• Taxed as personal income

• Relevant expenses may be deductible

Business Income

If hosting is regular and business-like (frequent listings, additional services, multiple units):

• Registration as a sole proprietor (FIE) may be required

• Social tax may apply

• Broader deductions become possible (utilities, cleaning, supplies)

2. Corporate Hosting

Many investors choose to operate Airbnbs through a company. Advantages include:

• Clear business expense deductions

• Structured financial reporting

• Reduced administrative burden for larger portfolios

Corporate ownership also aligns well with other Bryan Estates services such as residential property management.

3. VAT Considerations

Airbnb income may trigger VAT obligations if:

• Hosting is carried out as a business

• Annual turnover exceeds Estonia’s VAT threshold

Professional guidance is recommended for investors operating multiple units or expecting high revenue.

Annual Reporting Requirements

Estonian tax reporting is digital and user-friendly. Key requirements include:

• Declaring Airbnb income annually

• Reporting deductible expenses

• Submitting VAT filings if applicable

• Ensuring correct documentation for business classification

International owners will find Estonia’s digital tax system particularly efficient.

Regulations to Watch in 2025

While Airbnb hosting remains widely permitted, the government and municipalities continue to review:

• Guest registration requirements

• Accommodation classification

• Local tourism fee models

• Restrictions in historic districts or high-density buildings

Staying informed ensures long-term compliance and stability.

How Bryan Estates Helps Airbnb Hosts Navigate Rules & Taxes

From property preparation to compliance, Bryan Estates supports clients with:

• Market and income forecasting

• Advice on local building rules

• Guidance on tax classification and record-keeping

• Professional management for hands-off hosting

• Strategic investment planning

Short-term rental services integrate seamlessly with the company’s broader real estate expertise. Learn more on the About Bryan Estates page.

Confident, Compliant, and Profitable Airbnb Ownership

Airbnb investment in Estonia works — but success requires legal awareness, tax clarity, and strategic management. With professional support from Bryan Estates, hosts can stay compliant while maximising rental income across all seasons.

Explore potential Airbnb-ready properties on the Properties page.