Property Tax in Estonia Explained (2025 Update)
When foreign buyers search for “property tax in Estonia”, they are often surprised: Estonia does not tax the value of buildings, but applies an annual land tax on the value of land. In this 2025 guide we explain, in simple language, what Estonian homeowners actually pay, how land tax works and what to check before you buy or sell.
1. Property tax vs land tax in Estonia
In many countries “property tax” is paid on the total value of the building and land. Estonia is different: there is no annual tax on the value of buildings. Instead, owners pay an annual land tax based on the taxable value of the land only.
What is taxed?
- Land: taxed annually (land tax).
- Buildings: no separate annual property tax.
Who pays?
- Usually the owner of the land.
- In some cases the long-term user (right of superficies).
Note: this article is an informational overview, not legal or tax advice. Always check up-to-date rules with the Estonian Tax and Customs Board or a professional advisor.
2. How land tax is calculated in Estonia (general logic)
Land tax is calculated on the taxable value of land, not on the market sale price. The taxable value is determined by the state based on land valuations and local decisions.
Key elements that matter:
- Location – Tallinn, Tartu, Pärnu, rural municipality, etc.
- Land use type – residential, profit-yielding, other use.
- Tax rate – set within ranges defined by law.
- Taxable value – based on official mass valuation, not your purchase price.
In practice, the annual land tax bill for a typical apartment in Estonia is often modest, especially where there are exemptions for land under the primary home.
3. Land tax and your apartment in Tallinn or other cities
Many apartment owners in cities like Tallinn have historically paid no or very small land tax due to exemptions for land under the main residence and low taxable values in the past. However, from 2024–2025 land values and rates are being updated, so more owners may receive a land tax bill for the first time.
What should a homeowner check?
- Who is registered as owner of the land where the apartment building stands.
- Whether the main home exemption applies to your apartment.
- What the current taxable value of the land is.
- What tax rate your local municipality uses for residential land.
4. Do buyers need to worry about land tax when purchasing?
Yes — but usually not as much as in high property-tax countries. Before buying, you should ask:
- How much land tax was paid last year for this property?
- Is the buyer expected to pay land tax directly or via apartment association fees?
- Have there been recent changes in land valuation that will increase the tax?
If you are buying a house with a plot of land, check the size of the land and whether the main home exemption covers all of it or only part.
5. How land tax influences your listing on RNB.ee
While buyers focus mostly on location, condition and price, land tax can still play a role in their decision. When you create a listing on RNB.ee, you can increase trust by being transparent:
- mention typical annual land tax (if significant)
- explain if the main home exemption currently applies
- show typical monthly total housing costs (including association fees and land tax share)
Listings that clearly explain total housing costs (utilities, association fee, land tax) tend to perform better because buyers feel more confident about long-term affordability.
6. Frequently asked questions about property tax in Estonia
Is there an annual tax on the value of my apartment?
No separate annual tax is charged on the value of buildings or apartments themselves. The main recurring tax related to real estate is land tax.
Do I pay tax when I buy or sell real estate?
When buying or selling, you usually pay notary and state fees. Depending on your situation, there may also be income tax on capital gains if you sell a property that was not your main residence or does not qualify for exemption.
Can land tax amounts change in the future?
Yes. Land valuations and tax rates can be updated by the state and local municipalities. It is wise to check official information regularly, especially during 2024–2026, when many changes are being phased in.
7. How to stay informed and make smarter decisions
- Follow announcements from the Estonian Tax and Customs Board.
- Monitor changes in land valuation for your municipality.
- Ask your apartment association how land tax is handled in the building.
- Consult a tax advisor before large investment decisions.
Comparing homes and total costs across Estonia? Use RNB.ee to find your next apartment or house and see real market prices in one place.