Frequently Asked Questions
  
  
If you have a question about Estonian property ownership you may find the answer here – alternatively please email us and we shall be pleased to answer your query.
   
  
Can I revoke a Power of Attorney in Estonia?
    
If you have previously made a Power of Attorney in Estonia, then it can be revoked. You will need to take the Power of Attorney document to an Estonian Notary who will make a contract to cancel it. The cancellation will be formally published so that the document cannot be used in the future.
 
 
Are there Leasehold obligations in Estonia?
 
Not as such, all apartments are freehold, but there are residents’ groups or management companies which collect monthly contributions for utilities, services and maintenance.
Many properties have regular residents’ meetings. More significant decisions involve consultation with apartment owners and a majority decision will be acted upon.
 
 
What are these older blocks of flats from the Soviet era like?
 
They were solidly built and spacious. Many have balconies and communal heating. It is becoming increasingly common for the apartment owners to get together to have the outside of the building, stairways etc renovated. This usually includes exterior insulation for lower heating costs in the future. Renovations are often funded by the house committee organising a mortgage, payable over a 10 year period.
 
 
Do I need a lawyer?
  
The sale is carried out by a Notary who is responsible for making sure there are no problems. Their fees are set by law, according to the value of the sale. 
Buyer and seller are not normally individually represented. If you require to be represented, the British Embassy has complied a list of
 
 
 
What other costs are there for the legal work?
 
The purchase is subject to state tax and Notary fees, we can estimate the amounts before you commit yourself.
 If you attend the notary in person a translator will be needed, up to 45 Euros, unless you speak fluent Estonian.
 If you will not attend yourself then you will need to have a Power of Attorney, the choice of person nominated to represent you would be discussed when you sign the purchase agreement.
 
 
Do I get the keys at the Notary so I can get into the property?
 
No, the Notary contract will set a date when you, or your representative, will meet the sellers at the property – together with the selling agent. At that meeting the water and electricity meters are read, the satisfactory condition of the property is agreed and all keys are handed over.
 
 
When do I get the deeds?
 
The Notary is obliged to tell you that the property is not formally owned by you until the change of ownership is recorded at the Land Registry, some 3-6 weeks later. There are no “Deeds” as such, but if you are handed any plans of the site or building these should be kept safe and passed on when you sell the property. The Land Registry will email you confirmation that the ownership has been registered, including a copy of the register entry.
 
 
What taxes are due on property from the owner?
 
As an owner you will be liable for land tax, based on the state's assessment of what it is worth. This is a nominal amount, from 0.1% of the assessed value of the property, and is likely to be in the tens of euros per year
  
 
  
What rate of return could I expect from rental?
 
This will vary from one property to another, we can give approximate yields for any property that you are interested in. As a rule, apartments are more popular with tenants than houses, one bedroom homes let more readily than studios and any property outside Parnu or other cities will be more difficult to let.
 
    
Am I liable for tax if I sell later at a profit?
 
You will be liable for tax on the sale if you benefit from capital growth unless you have been resident in the property for a reasonable time.  
 
  
Are apartments leasehold?
 
No. All properties are freehold and will be registered at the Land Registry, whose records are available online. Those few properties which have not yet been registered cannot be sold, and the Notary will not proceed with the transaction. We confirm that any property we offer is freehold.
 
  
Is there a limit to how much property I can buy?
 
There is no limit to the number of properties you may buy, but individual foreign buyers may not buy any individual plot over 100,000 sqm.
 
    
How do I reserve a property?
 
A deposit of 10-20% is required to reserve.
The balance may be requested very shortly after, depending how long it takes to get a notary appointment. The whole process can be completed in less than 2 weeks so it is important that full finance is in place before you commit yourself.
 
    
Can a married person buy property on their own?
 
Yes, but their spouse must consent to any mortgage, and their agreement is needed if the property is subsequently sold.
The spouse must be a party to any Power of Attorney which covers mortgage or sales transactions.
 
    
Do I need a survey?
 
A survey is not usually needed, unless a mortgage is applied for. This will be a valuation to make sure the loan is secured, the size of the property is more important than its condition and defects are not likely to be commented upon. Valuations do tend to be a little on the pessimistic side.
 If you wish to have a report on the condition of the property we can arrange that for you.
 
    
Can I get a mortgage?
 
Estonian banks, like others elsewhere in the world, are limiting their lending and evidence of status and income have become stricter. Our links pages help you to find out for yourself more about current offers from a selection of major banks.
All the major banks offer sophisticated Internet banking accounts which allow overseas buyers to manage their money and their property online.
 
    
I want to build my own home. What sort of planning controls are there?
 
Land registry records will show any restrictions on development. Planning applications take up to 9-18 months to process. There are restrictions on distances between new houses and roads, rivers, sea and other dwellings’ water and drainage installations. Where an existing house in poor condition is to be replaced it is possible to build the new one with the same "footprint" with no new consent.