Thinking about buying property in Estonia?
Whether you’re an investor, digital nomad, or someone relocating for work, Estonia offers a stable legal system, transparent property market, and the digital infrastructure to manage everything remotely — even signing contracts online.
In this guide, we explain step-by-step how foreigners can buy real estate in Estonia, including legal rules, taxes, financing options, and practical advice from local experience.
🇪🇪 1️⃣ Can foreigners buy property in Estonia?
Yes.
There are no citizenship or residency restrictions for buying property in Estonia.
Foreigners (EU and non-EU alike) can freely purchase:
- Apartments and houses
- Land plots (except for some agricultural or forest land near borders — which may require government permission)
- Commercial and investment property
Ownership rights for foreigners are protected by Estonian law the same as for citizens.
Tip: Always check the property’s ownership type in the official Land Register (Maa-register). A local notary will verify that for you before signing.
🧾 2️⃣ Step-by-step process to buy property in Estonia
Step 1 — Find a property
Use portals such as kv.ee, kinnisvara24.ee, or contact a local brokerage such as Brokerly.ee for pre-market listings and negotiation support.
Step 2 — Make an offer
Offers are usually made in writing (email or digital document).
Once both sides agree, a preliminary contract (broneerimisleping) can reserve the property for you for 1–3 weeks.
Step 3 — Sign the purchase contract
All real estate transactions must be certified by an Estonian notary.
You can attend in person or sign remotely via Smart-ID or DigiDoc (accepted worldwide).
At this stage, you’ll also pay the purchase price and state fees.
Step 4 — Register ownership
The notary submits the ownership transfer electronically to the Estonian Land Register.
Registration usually takes a few working days.
💰 3️⃣ Costs & taxes when buying
| Type | Amount | Notes |
|---|---|---|
| Notary fee | ~0.2–0.4% of property price | depends on transaction value |
| State fee (land registry) | ~0.1% | capped at 2 500 € |
| Real-estate agent fee | usually paid by seller | included in listing price |
| Property tax (annual) | 0.1–2.5% of land value only | apartment buildings usually negligible |
| VAT (if applicable) | 24% | only for new-builds or company-to-company sales |
🏦 4️⃣ Financing options for foreigners
Foreign buyers can get mortgages from Estonian banks if they have:
- Income proof (EU or OECD country)
- Good credit history
- Down payment typically 20–30%
- Property located in Estonia
Major banks: Swedbank, LHV, SEB, Coop Pank.
Alternatively, many investors purchase through a local Estonian company (OÜ) — allowing for reinvestment and VAT efficiency (especially for rental projects).
🏘 5️⃣ Buying via company vs personally
| Option | Advantages | Drawbacks |
|---|---|---|
| Personal ownership | Simple, direct; less paperwork | No VAT recovery, no business tax deferral |
| Company (OÜ) | Possible VAT refund, tax deferral until dividend payout, easier portfolio scaling | Annual accounting required, more formal setup |
Brokerly can help you assess which structure suits your investment size and future plans.
📊 6️⃣ Typical ROI & rental yields
- Tallinn: 4 – 5.5 % gross yield
- Tartu: ~4 %
- Pärnu: ~5 – 6 % for seasonal rentals
- Short-term rentals (Airbnb type): can reach 6–8 % but depend on location and management costs
🧠 7️⃣ Common mistakes to avoid
- Not checking usage purpose (residential vs accommodation unit)
- Skipping professional inspection or due-diligence
- Ignoring renovation funds (remondifond) and maintenance fees
- Underestimating taxes when renting to foreign clients (Airbnb VAT 13 %)
🪪 8️⃣ Legal & digital advantages
Estonia’s digital infrastructure allows you to:
- Sign all contracts online with Smart-ID/e-Residency
- Access property documents instantly via e-Land Register
- Receive bilingual notary service (Estonian + English)
That means the whole process can be completed without travelling, if you use e-Residency or power of attorney.
🌍 9️⃣ Why foreign investors choose Estonia
- Transparent legal system (EU + OECD standards)
- Euro currency and stable banking sector
- Strong rental demand in Tallinn (expat & IT sectors)
- Simple digital administration (taxes, contracts, signatures)
- 0 % corporate tax on retained earnings
🤝 10️⃣ How Brokerly can help
- Pre-market and developer listings across Tallinn & Tartu
- ROI calculation & rental income projection
- Bilingual negotiation and notary coordination
- Turn-key rental management setup
- Company formation and VAT-advisory support
📩 Contact Brokerly.ee → Let’s discuss how your Estonian property investment can start working for you.
🔖 Key Takeaways
- Foreigners can freely own property in Estonia
- Transactions are fully digital and secure
- Taxes are predictable, and yields remain attractive
- Using an OÜ company can provide VAT and tax efficiency
- Brokerly offers end-to-end bilingual assistance
