Investors value total return – rental yield plus price growth. When deposits earn 10%, property must offer more than just cozy interiors.
In Estonia’s 2025 market, appraisal values often exceed real buyer prices due to data delays, missing photos, and unseen developer discounts.
Space-saving design and timeless interiors increase apartment value and rental yield. Discover practical upgrades that bring the best ROI in Tallinn homes.
Choosing the right VAT scheme can raise Airbnb ROI by 10–15%. The best model is when the owner is VAT-registered and hires a management operator.
In 2025 Estonia applies 24% VAT for commercial property, 13% for accommodation, and 0% for residential rentals — know when input VAT can be reclaimed.
Airbnb with 13% VAT offers a 30% higher total return than long-term rental — thanks to VAT refund and net tax benefit of over €22,000 across 10 years.
Smart interior design, natural materials, and small improvements can raise rent by 10–30%. Invest in light, functionality, and durability.
New builds are modern, resales are stable — but the best balance often lies in 3–5-year-old apartments where systems and costs have already settled.
In Estonia 2025, rental income can be taxed as an individual or company — individuals face 17.6% effective tax, companies can reinvest profit tax-free.
The study aims to compare the profitability of rental apartments in Tallinn and Tartu by calculating gross rental yield (brutotootlus), which is derived from rental income relative to the property’s sales price. Using data from real estate portal kv.ee, the author analyzed 199 apartment listings (162 from Tallinn and 37 from Tartu) and matched them with comparable sales listings to estimate yield...
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