Can I use Estonia property as vacation home?

Authored by the expert who managed and guided the team behind the Estonia Property Pack

Everything you need to know before buying real estate is included in our Estonia Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Estonia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Estonian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tallinn, Tartu, and Pärnu. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Estonia?

Foreigners can legally purchase property in Estonia with the same ownership rights as Estonian citizens.

Both EU/EEA nationals and most non-EU citizens have full rights to buy apartments, houses, and developed land across Estonia. The Estonian property market operates under transparent laws that treat foreign buyers equally to domestic purchasers in most circumstances.

However, specific restrictions apply to certain property types and locations. Properties on four major Estonian islands (Saaremaa, Hiiumaa, Vormsi, and Muhu) may require special government permission for non-residents. Additionally, agricultural and forest land exceeding 10 hectares, as well as properties in designated border areas or strategic zones, have restricted access for foreign buyers.

As of September 2025, the Estonian government maintains these limitations primarily for national security and agricultural policy reasons. Non-EU buyers seeking to purchase restricted properties must obtain approval from relevant government or county authorities.

For standard residential properties including condominiums, urban houses, and buildable plots, foreign buyers face no additional barriers compared to Estonian residents.

What types of property are available for private ownership?

Estonia offers full private ownership rights for apartments, houses, and most types of developed land to foreign buyers.

The Estonian residential property market includes urban apartments (condominiums), detached houses, townhouses, and residential building plots. Foreign buyers can purchase these properties with complete ownership rights, including the right to modify, sell, or lease the property without restrictions.

Developed urban land and residential plots are widely available for foreign ownership, particularly in cities like Tallinn, Tartu, Pärnu, and other municipal areas. These properties come with full ownership rights to both the building and the underlying land.

Agricultural and forest land present more complex ownership scenarios. Properties under 10 hectares are generally accessible to foreign buyers, while larger agricultural or forest plots may require special permits. These restrictions aim to protect Estonia's agricultural sector and maintain local control over large-scale land use.

It's something we develop in our Estonia property pack.

Are there restrictions on using a property as a vacation home?

Estonia imposes no legal restrictions on using purchased property as a vacation home.

Once you own property in Estonia, you have complete freedom to use it as a primary residence, vacation home, or rental property. Estonian law does not distinguish between different types of property use for foreign owners, provided the property was legally purchased.

Property owners can stay in their vacation homes for any duration without requiring special permits related to the property itself. However, standard Schengen Area visa regulations apply to non-EU/EEA citizens, limiting stays to 90 days within any 180-day period unless they hold appropriate residence permits.

Local municipalities may have specific regulations regarding vacation rental operations, waste collection schedules, or seasonal utility services, but these do not restrict personal use of the property. Some coastal or resort areas may have slightly different municipal service fees for vacation properties, but these are typically minimal.

Estonian vacation home owners can freely access their properties year-round, maintain them according to their preferences, and use them for extended stays within their visa limitations.

Do I need a special permit to stay in my own property for extended periods?

Property ownership in Estonia does not require special permits for staying in your own home, but visa regulations still apply to non-residents.

Estonian law recognizes property owners' right to use their properties without additional permits related to the property itself. If you legally own real estate in Estonia, you can stay in that property as long as your visa or residence status permits.

For EU/EEA citizens, property ownership combined with EU freedom of movement rights allows unlimited stays in Estonia. Non-EU citizens must comply with standard Schengen Area regulations, which typically allow 90 days of stay within any 180-day period on tourist visas.

Extended stays beyond tourist visa limits require appropriate residence permits, which are processed independently of property ownership. Estonian authorities do not issue residence permits based solely on property ownership, unlike some other European countries.

Property owners planning extended stays should consult Estonian immigration authorities about appropriate visa types or residence permit applications based on their specific circumstances, such as retirement, business activities, or family connections.

What are the property tax rules for vacation homes in Estonia?

Estonia applies property taxes based on cadastral values with generally equal rates for residents and non-residents.

Tax Type	Rate/Calculation	Application to Vacation Homes
Annual Property Tax	0.1% - 2.5% of cadastral value (set by municipalities)	Same rates apply regardless of residency status
Land Tax	0.1% - 2.5% of land cadastral value	Applied to all landowners equally
Municipal Service Fees	€50-200 annually (varies by location)	Some municipalities charge higher rates for vacation homes
Waste Collection	€100-300 annually (depending on service level)	Vacation homes may opt for seasonal service
Transfer Tax (Purchase)	0.4% of purchase price	One-time fee applied to all property purchases

Are there annual fees or local taxes specific to non-resident property owners?

Estonia does not impose special national-level taxes or fees specifically for non-resident property owners.

The Estonian tax system treats resident and non-resident property owners equally for most property-related obligations. Annual property taxes, land taxes, and transfer taxes apply the same rates regardless of the owner's residency status or nationality.

Some local municipalities may impose small additional fees for non-primary residences or vacation homes, typically ranging from €50 to €200 annually. These fees usually cover enhanced municipal services, tourism infrastructure, or environmental protection measures in resort areas.

Municipal waste collection, water, and sewage services may offer different pricing structures for vacation homes, including seasonal service options that can reduce costs for properties not used year-round. These are service-based fees rather than taxes targeting non-residents.

It's something we develop in our Estonia property pack.

How easy is it to rent out the property when I'm not using it?

Renting out vacation properties in Estonia is straightforward and legal without requiring special permits.

Estonian law allows property owners to rent their properties for both long-term and short-term arrangements without obtaining rental licenses or permits. The rental market operates freely, with owners able to set their own rental rates and terms within legal boundaries.

Short-term vacation rental platforms like Airbnb and Booking.com are active in Estonia, particularly in Tallinn, Pärnu, and other tourist destinations. The summer season (June through August) typically generates the highest rental income for vacation properties.

Rental income from Estonian properties is subject to Estonian income tax, with non-residents typically facing a 20% tax rate on rental earnings. Property owners must register rental income with Estonian tax authorities and may need to collect and remit VAT if rental income exceeds €40,000 annually.

Some apartment buildings or residential complexes may have homeowner association rules regarding short-term rentals, so owners should verify building-specific regulations before establishing rental operations.

What legal steps are required to complete a property purchase?

Estonia operates a highly digitalized and transparent property purchase process through its Land Register system.

1. **Property search and preliminary agreement** - Buyers typically work with real estate agents to identify properties and negotiate preliminary purchase agreements with deposit payments (usually 10% of purchase price). 2. **Due diligence and documentation** - Legal verification of property ownership, checking for liens or restrictions, and gathering required documentation including proof of identity and funds. 3. **Notary appointment and contract signing** - Estonian law requires notary involvement for property transfers, with contracts signed in the presence of a licensed notary. 4. **Payment and registration** - Final payment completion followed by registration of ownership transfer in the Estonian Land Register, which typically takes 1-3 business days. 5. **Utility transfers and municipal registration** - Arranging utility account transfers and registering with local municipalities for tax and service purposes.

The entire process typically takes 4-8 weeks from preliminary agreement to completed registration, depending on financing arrangements and documentation preparation time.

Do I need to set up an Estonian company to buy property, or can I buy it as an individual?

Most foreign buyers can purchase Estonian property as individuals without establishing an Estonian company.

Estonian law permits direct individual ownership of residential and commercial properties for both EU/EEA and non-EU citizens. Setting up a local company is not a requirement for standard property purchases and adds unnecessary complexity and ongoing compliance costs for most vacation home buyers.

Individual ownership provides simpler tax treatment, lower ongoing administrative costs, and more straightforward inheritance planning compared to corporate ownership structures. Property registration, maintenance, and eventual sale are all more efficient under individual ownership.

Company establishment might be considered only in specific circumstances such as purchasing restricted land types, operating significant rental businesses, or implementing complex tax planning strategies. However, these situations are uncommon for typical vacation home purchases.

Foreign individuals must provide standard identification documents and proof of funds during the purchase process, but these requirements are routine and do not necessitate corporate structures.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Estonia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How does inheritance or succession law affect foreign-owned property in Estonia?

Estonian inheritance laws generally allow foreign property owners to pass property to heirs regardless of nationality.

Estonia recognizes international inheritance rights and does not impose special restrictions on foreign succession of most property types. Property owned by foreigners can be inherited by beneficiaries of any nationality, following standard Estonian inheritance procedures.

The Estonian inheritance process requires registering ownership transfers through the Land Register system, similar to regular property sales. Heirs must provide death certificates, wills (if applicable), and proof of inheritance rights to complete property transfers.

Some restrictions on foreign succession may apply to agricultural or forest land holdings, but these limitations do not typically affect standard residential vacation properties. EU/EEA citizens face fewer restrictions compared to non-EU inheritors for certain property types.

Foreign property owners should consider creating wills that comply with both Estonian law and their home country's legal requirements to ensure smooth inheritance processes for beneficiaries.

What are the ongoing maintenance and utility costs for a vacation home?

Vacation home maintenance costs in Estonia typically range from €1,000 to €4,000 annually depending on property size and usage patterns.

Cost Category	Annual Range (EUR)	Notes
Property Insurance	€200 - €600	Comprehensive coverage recommended for vacation homes
Heating (seasonal use)	€400 - €1,200	Depends on property size and heating system type
Electricity	€200 - €500	Lower for vacation homes with seasonal use
Water and Sewage	€150 - €400	Some areas offer seasonal service rates
Internet and Communications	€200 - €400	Essential for rental properties and remote access
Maintenance and Repairs	€500 - €1,500	Varies significantly based on property age and condition
Homeowner Association Fees	€300 - €1,000	Applies to apartments and some residential complexes

Are there residency or visa benefits linked to owning property in Estonia?

Property ownership in Estonia does not provide automatic residency rights or visa benefits.

Unlike some European countries that offer residence permits through property investment programs, Estonia maintains a clear separation between property ownership and immigration status. Buying real estate in Estonia, regardless of value, does not qualify buyers for Estonian residence permits or citizenship pathways.

Foreign property owners must obtain residence permits through standard immigration channels such as employment, family reunification, education, or retirement programs. These applications are processed independently of property ownership status.

However, property ownership can serve as supporting evidence in residence permit applications by demonstrating ties to Estonia and financial stability. Immigration authorities may view property ownership favorably when evaluating applications for business or retirement residence permits.

It's something we develop in our Estonia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Estonia Real Estate Foreigner Tips
2. ELRA Estonia Limitations to Foreigners
3. Lawyers Estonia Property Purchase Guide
4. ELRA Estonia Legal Restrictions
5. Arab MLS Estonia Foreign Property Rights
6. Work in Estonia Housing Guide
7. Global Property Guide Estonia
8. Njord Law Estonia Airbnb Legal Guide
9. Kurg Korsten Estonia Property Guide
10. Fondia Estonia Real Estate Basics