Buying and Renting Real Estate in Estonia

Estonia is becoming increasingly popular among foreigners thanks to its stable economy, affordable property prices, and high living standards. This makes the country attractive for both living and investment. This article outlines the key aspects of buying and renting real estate in Estonia.

Buying Real Estate

Advantages

1. Stable Legal System
   Estonia ensures transparency in transactions and protects the rights of buyers and sellers.
2. Affordable Prices
   Real estate prices are relatively lower compared to other European countries:
   • Tallinn: €2,000–€4,000/m².
   • Tartu: €1,500–€2,500/m².
   • Pärnu: €1,200–€2,000/m².
3. No Restrictions for Foreigners
   Foreigners can purchase property in Estonia without any limitations.

Buying Process

1. Searching for Property
   Popular platforms include City24.ee and KV.ee.
2. Legal Verification
   A notary is typically involved to verify the property’s history and prepare the transaction.
3. Registration
   The transaction is registered by a notary in the Land Register. The registration fee is usually 0.1–0.5% of the property’s price.

Renting Real Estate

Types of Rentals

1. Long-term Rentals
   Popular among expats and students. Average prices:
   • Apartment in central Tallinn: €500–€800/month.
   • In residential areas: €400–€600/month.
   • Suburban houses: from €1,000/month.
2. Short-term Rentals
   Ideal for tourists but typically more expensive, especially during the holiday season.

Where to Find Housing

1. Online Platforms: City24.ee, KV.ee, Airbnb.
2. Real Estate Agencies: Service fees are about one month’s rent.

Key Features of Renting

• The security deposit is usually 1–2 months’ rent.
• All rental terms must be outlined in a written agreement, which should be reviewed carefully.

Popular Residential Areas

1. Tallinn
   • Old Town (Vanalinn): Historic atmosphere with higher prices.
   • Kesklinn: Business center with modern infrastructure.
   • Kopli and Lasnamäe: Affordable districts.
2. Tartu
   Known as the city of science and education, with convenient areas near universities.
3. Pärnu
   A seaside resort town, popular for both rental and vacation home purchases.
4. Ida-Viru County
   An area with affordable prices but less developed infrastructure.

Mortgage Loans

Foreigners can apply for a mortgage to purchase property. Key terms:

• Down payment: 15–30%.
• Interest rate: 2–4%.
• Loan term: up to 30 years.
  Popular banks include Swedbank, SEB, and LHV Pank.

Conclusion

Estonia offers favorable conditions for buying and renting real estate. Transparent laws, advanced digital infrastructure, and moderate prices make the country attractive for both living and