- Land tax is based on the taxable value of land and tax rate established by a local government.
- The taxable value of land forms on the basis of potential profitability, intended purpose and location of the land, and not on the actual use of the land.
- Based on the taxable value of land and the tax rate imposed on it, the Estonian Tax and Customs Board calculates the land tax and organises its collection.
Land tax is paid by owners or users of land – private individuals, businesses and the state alike.
The tax on land is based on the right of ownership or use.
- Unless land use is re-registered pursuant to the Land Reform Act, land tax is paid by land users.
- If land is encumbered with a right of superficies or a usufruct, land tax must be paid by the superficiary or usufructuary.
- If a registered immovable (plot with buildings) is divided between apartment ownerships, the owner of each apartment must pay the land tax for his or her apartment ownership.
Land tax will not be imposed if the amount of tax is less than 5 euros. The owners of apartments in apartment buildings also pay land tax. However, as in many apartment buildings the share of land tax for apartment owners is less than 5 euros, people may not be aware of the land tax and land tax exemption.
The taxing of land is based on the taxable value of land, which the Land Board determines during mass valuation.
As a result of the valuation, value zones are formed and the value of the land in each zone is determined by intended purposes or land use types. The results are prepared as maps of value zones and a list of the value of land.
The Land Board adds valuation results to land cadastre (data collection consisting of land registers, cadastral maps and cadastral archives). The land cadastre also includes, among other things, information about the natural state of plots and data on land use types, which may change if the natural state of land changes.
The valuation of land is regulated by the Land Valuation Act.
The taxable value of plots of land is calculated by local authorities that establish a tax rate for each plot and incentives per value zone each year by 31 January at the latest.
The rate of land tax is 0.1–2.5 per cent of the taxable value of land annually. The amended tax rates will be applicable from 1 January.
On the basis of the taxable value of land, the Estonian Tax and Customs Board will calculate land tax.
Settlement of disputes concerning the determination of taxable value of land is established by the Land Valuation Act.
Land under one’s home (0.15 hectares in densely populated areas and 2 hectares elsewhere) is exempt from land tax.
A landowner is entitled to exemption from land tax on land under home if as of 1 January:
- he or she is the owner or user of the plot of land;
- the plot is residential land or profit-yielding land that includes the land use type of yard land;
- his or her residence is in the building located on this land pursuant to the residence data entered in the population register.
In the case of apartment ownership, there is a limit to the land tax exemption on land under home, which is divided between each apartment ownership according to its share of ownership. Land tax exemption also applies to a building association which owns the building. If land is part of joint or common ownership, the tax exemption limit applies to all owners jointly.
If part of the apartment building is used as commercial or public land, the plot of land shall be assigned multiple intended purposes.
The plot of land will be proportionally assigned the intended purposes of residential land and other land that apply to all apartment ownerships of this plot of land.
Local government may additionally exempt pensioners and disabled persons from the obligation to pay land tax on residential land to the extent of 0.15 hectares and repressed persons from the obligation to pay land tax to the extent of the whole residential land. In order to qualify for the exemption, you must submit an application to your local government.
Land tax liability is created on 1 January of the current year. The Estonian Tax and Customs Board issues a tax notice to a person who as of 1 January is the owner or user of land.
The obligation to pay land tax arises when the amount of tax on land located within the territory of one local government is at least 5 euros.
If the total amount of tax on land located within the territory of one local government is less than 5 euros, the land tax notice is not sent and land tax is not payable.
If land or the right to use land is acquired in the middle of the year, it will remain the obligation of the previous owner or user to pay land tax until the end of the year. The tax liability of the new owner or user will arise from 1 January of the year following the year in which the land or the right to use the land was acquired.
If your land tax notice contains inaccuracies in the land use or taxpayer data, please inform the local authority of the location of the land which will make the necessary corrections to registers.
Land owners and/or users do not have to submit land data or calculate and declare land tax themselves.
The Estonian Tax and Customs Board will calculate land tax based on the data from a local government by 15 February at the latest and will issue a land tax notice in the e-services environment e-MTA.
We will inform tax payers about the issued land tax notices by e-mail or text message. If we do not have taxpayer’s e-mail address and telephone number, we will send a tax notice on paper by regular mail.
We use contact information in the population register or in the e-MTA register when sending notifications. If the data in the registers is different, we use the most recently amended data. For notifications to reach you, please check your contact details in the population register and/or the e-services environment e-MTA of the Estonian Tax and Customs Board and correct them if necessary.
All information about the taxation of your land is also available in the e-MTA. If you notice inaccuracies in the data about your land, please inform the local authority immediately.
If you have not received your land tax notice by 25 February at the latest, please contact the Estonian Tax and Customs Board.
The Estonian Tax and Customs Board will not send a tax notice when the amount of tax on land located within the territory of one local government is less than 5 euros.
There are two deadlines for payment of land tax – 31 March and 3 October.
- Land tax in the amount of up to 64 euros on land located within the territory of one local government must be paid by 31 March.
- If the land tax amount exceeds 64 euros then:
– at least half of the amount must be paid by 31 March, but not less than 64 euros;
– and the rest of the amount by 3 October.
Land tax is paid to the bank account of the Estonian Tax and Customs Board.
To make the payment of land tax easier, you can order an e-invoice conveniently in the e-services environment e-MTA of the Estonian Tax and Customs Board.
E-invoice ordering instructions and additional information
Last updated: 23.09.2022