Over the past decade, Estonia’s real estate market has become increasingly international. In Tallinn, Tartu and Pärnu, more and more foreigners are renting apartments — from corporate employees and startup founders to digital nomads who stay for months or years.
But what should landlords know when renting to expats?
🌍 1. Who Are the Expats and What Are They Looking For?
The main groups of foreign tenants include:
- Employees of IT and fintech companies (Wise, Bolt, Swedbank, Ericsson, Playtech, etc.)
- Staff of EU institutions, the UN, and diplomatic missions
- Digital nomads using Estonia’s e-residency program
- Citizens of Ukraine, Georgia, and Russia who work or study in Estonia
- Professionals from Western Europe and Scandinavia seeking modern, fully furnished apartments in central or seaside locations
What they value most:
- A furnished, well-maintained apartment
- High-speed internet and a workspace
- Easy access to transport and grocery stores
- Friendly communication in English or Russian
- The ability to sign contracts digitally (Smart-ID, e-residency ID)
📑 2. Contracts and Signatures – Can a Foreigner Sign Digitally?
Yes.
All foreigners who hold an Estonian ID card, residence permit, or e-residency card can sign contracts through DigiDoc4 just like Estonian citizens.
If a person doesn’t have an Estonian digital ID, they can use:
- Adobe Sign / DocuSign for international digital signatures, or
- Sign manually and scan the document if it’s a long-term rental.
📌 Note: A simple signed PDF is legally valid if both parties are identifiable, but a digital or notarized signature eliminates disputes.
💶 3. Deposits and Payments – Currency, Banks, and Security
- The most common payment method is a bank transfer in euros to an Estonian account.
- Many expats use Wise, Revolut, N26, or Monese — these are acceptable, but the contract should specify that rent is considered paid once the funds are received in euros on the landlord’s account.
- A typical security deposit equals one month’s rent plus average utilities.
- Using Rendin or similar no-deposit solutions is especially appealing to younger tenants.
🧾 4. Taxes and Reporting
When renting to a foreigner, the tax rules are the same as for local tenants.
If the landlord is a company, income can be reinvested tax-free (until dividends are paid).
If the landlord is a private person, income tax is 20% of net profit, and related expenses (utilities, maintenance, broker fee, etc.) can be deducted.
🏢 5. Preferred Areas and Property Types
Most in-demand expat areas:
- Tallinn: Rotermann, Noblessner, Kalamaja, City Centre, Kadriorg
- Tartu: City Centre, Ülejõe, new apartments in Karlova
- Pärnu: Beach area and city centre (especially for seasonal rentals)
Typical preferences:
- 1–2-room furnished apartments, €700–1300/month
- Good indoor climate and ventilation (expats are sensitive to damp or cold)
- Pet-friendly apartments are a plus, especially for young professionals
🤝 6. The Role of the Realtor – Why Professional Mediation Matters
Renting to foreigners can be:
- more complex linguistically and legally,
- but more reliable and profitable when handled properly.
A good realtor helps to:
✅ verify the tenant’s background and employer
✅ prepare a bilingual (EN/EE) contract
✅ ensure both parties sign legally
✅ conduct the handover act with photos and clear deposit handling
💡 7. Tips for Landlords
- Offer a fully furnished and technically sound apartment
- Include an English-language listing and floor plan
- Provide a bilingual lease agreement (Estonian + English)
- Clearly state which utility costs are extra
- Don’t hesitate to ask for proof of employment and income – expats are used to it
- Be ready for virtual viewings (WhatsApp, Zoom, or video walkthroughs)
📊 Summary
Estonia’s expat rental market is stable and growing, especially in Tallinn, where thousands of international professionals work.
If your apartment is well-prepared, your contract is clear, and communication is smooth, an expat tenant is often one of the most reliable and punctual clients you can have.
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