Land tax from January 1, 2024
Land tax is an Estonian state tax that is paid in full to the budget of a local authority. Land tax is imposed on all land in Estonia, except land where economic activities are prohibited. Land tax is paid by the owner of the land or, in certain cases, by the land user.
✅ As of 2024, new tax rates apply in Tallinn.
✅ Tax rate of 0.5%, instead of the previous 2.5%, applies to residential and profit-yielding land. Land with other intended use is taxed at a rate of 1% of the taxable value of land per year.
✅ The taxation of land is based on the recent mass valuation of land (2022) conducted by the Land Board, and changes in the Land Tax Act.
✅ Land tax will not increase by more than 10% compared to the previous year. If 10% is less than 5 euros, the land tax amount will be increased by 5 euros each year until it reaches the maximum land tax amount.
✅ Tallinn homeowners remain to be exempt from land tax for up to 1500 m² of domestic land in 2024.
✅ Additionally, a homeowner’s tax exemption is applicable to homeowners living on land with joint intended use.In Tallinn, this concerns approximately 25,300 homeowners on 1100 cadastral units.
✅ In 2023, the City of Tallinn exempted 169,500 homeowners from paying taxes on domestic land.
✅ Landowners started receiving tax notices with the new tax rates from February 2024.
tax exemptions and incentives
Land value, or the taxable value of land, is received from the Land Board.
- For residential and the land use type of yard land on profit-yielding land, an annual rate of 0.5% of the taxable value of land.
- For profit-yielding land (excluding yard land), an annual rate of 0.5% of the taxable value of land.
- For land with other intended use, an annual rate of 1% of the the taxable value of land.
The protective mechanism, or the limit of land tax increase
To prevent a sharp increase in land tax, the so-called protective mechanism has been established, which caps the increase at 10% (or 5 euros). This means that the land tax increase will not exceed 10% per year compared to the previous year until it reaches the maximum value defined by the taxable value of land and the land tax rate.
If 10% is less than 5 euros, the land tax will increase by 5 euros each year.
A simplified illustration of variations in the land tax from 2023 to 2031
For a plot of land that was liable for 100 euros in land tax in 2023, and whose evaluated value increased tenfold, the land tax is limited to rise up to 200 euros. This change occurs in increments of 10%, starting from 2024. Therefore, for this plot of land, the land tax would amount to 100 euros in 2023, 110 euros in 2024, 121 euros in 2025, 133 euros in 2026, 146 euros in 2027, 161 euros in 2028, 177 euros in 2029, 195 euros in 2030 and 200 euros in 2031. This increase can change, as there will be two valuations in the meantime that could increase or decrease the land’s value.
- Land tax rates in Tallinn by year
Persons repressed by occupying powers are also exempt from land tax in Tallinn. Apply for land tax exemption based on repressed status.
- The land tax exemption applies to owners and users of the land, including apartment owners, superficiaries and usufructuaries.
- The person’s place of residence must be in a building located on the land and must correspond to the place of residence information entered into the Population Register as of 1 January.
- The tax exemption is granted for land primarily or partly used as residential land or the land use type of yard land on profit-yielding land in densely populated areas with a size of less than 1500 m².
- Starting from 2024, the tax exemptions are expanded for homeowners residing on land with joint intended use. This means that, apart from the intended residential use of the land, other designated purposes of their land will also be eligible for tax exemption.
- For instance, if the ground floor of an apartment building is used for commercial purposes, then beginning in 2024, the homeowner will be exempt from paying land tax for the commercial land in that building.
Building association’s land tax exemption
- The land owned by a building association, which is utilised entirely or partially for residential purposes, is granted exemption from land tax in proportion to the contributions made by the natural person members of the association.
- A building association member’s place of residence must be in a building located on the land, corresponding to the place of residence information entered into the Population Register.
- Every building association member that meets these requirements will be exempt from land tax for up to 0.15 hectares.
Tax exemption in the case of common ownership
- Co-owners are exempt from land tax for land primarily or partially used as residential land or the land use type of yard land on profit-yielding land in densely populated areas with a total size of less than 1500 m² per plot of land.
- If the land located in a densely populated area is larger than 1500 m², then the size of the exempt area depends on the number of co-owners.
- For example, if a 2000 m² plot of land has two co-owners, then 1500 m² of the land is tax exempt, while 500 m² of it is taxed.
Tax exemption for apartment owners
- Tax exemption for apartment owners is granted for land primarily or partially used as residential land in densely populated areas with a total size of less than 1500 m² per owner.
- Therefore, as opposed to common ownership, every apartment owner is exempt for up to 1500 m² of residential land.
- Frequently asked questions for homeowners
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What prerequisites need to be met to receive the tax exemption on domestic land?
The tax exemption will apply to landowners, developers, usufructuaries, members of building associations or property inheritors based on information from the Inheritance Register, for a plot of land used entirely or partially for residential purposes or as profit-yielding land which includes the land use type of yard land. This exemption is valid if they are registered as residents of a building on the plot of land in the Population Register as of 1 January.
Do you need to submit an application to receive the tax exemption on domestic land?
You do not need to submit an application, the land tax exemption will apply automatically.
What date is used to determine tax exemption?
The land tax exemption is determined as of 1 January. Information entered into the Land register and Population Register is used to verify eligibility for the tax exemption.
How can I check whether my information in the Population Register is correct?
You can do this in the state portal eesti.ee by submitting a request for your information. You can also do so in the district administration of your residence.
Where can I change my place of residence information?
Information in the Population Register can be changed in the district administration of your residence or the state portal eesti.ee. If you change your place of residence information in the e-Population Register, make sure to finish (sign) your proceedings.
To what extent are joint and co-owners of domestic land exempt from land tax?
If a plot of land is in the joint or common ownership of multiple persons, the city tax exemption will apply for up to 1500 m² regardless of the number of joint or co-owners. Only joint and co-owners who are residing in a building on the plot of land according to the Population Register are exempt from paying land tax. The joint and co-owners of a plot of land are exempt from land tax in proportion to their share in the ownership of the plot of land, as the Property Law Act mandates that the rights and duties of joint and co-owners related to a common property are distributed in proportion to the size of their part of the property.
If a residential land that is 1500 m² and includes a building is equally co-owned by two persons, but only one person lives in the building located on the land, to what extent does the tax exemption apply?
If a residential land that is 1500 m² and includes a building is equally co-owned by two persons, but only one person lives in the building located on the land, then only the person who has registered their place of residence in the building is exempt from land tax for up to 750 m².
If a plot of residential land that is 3500 m² and includes a building that is equally co-owned by two persons, both of whom live in the building located on the land, to what extent does the tax exemption apply?
If a residential land in the city that is 3500 m² and includes a building that is equally co-owned by two persons, both of whom live in the building located on the land, then the co-owners will be exempt from land tax for a joint total of up to 1500 m². Both co-owners will receive personal tax exemptions of up to 750 m² and the remaining 2000 m² will be subject to land tax.
To what extent do apartment owners receive the tax exemption?
A separate law applies to apartment owners. An apartment owner who meets the law’s requirements is exempt from land tax for up to 1500 m².
To what extent does the land tax exemption apply to apartment owners who live in a building that includes business premises?
Beginning in 2024, the level of tax exemptions will rise for homeowners residing on land with multiple intended purposes. This means that in addition to the residential portion, the tax exemption will extend to the other parts of the land with- different intended purposes.
If a person owns several apartments in a single apartment building, which of these will be eligible for a domestic land tax exemption?
If the person’s place of residence according to the Population Register is in one of the apartments in the building, they will be exempt from land tax only to the extent of the land that is a part of their personal place of residence. For example, if the house where the apartment is located also has a garage box and a storage room (all three are separate apartment properties), then only the land of the apartment property that is used as a residence is tax exempt. The garage box and the storage room are not tax exempt.
How does the tax exemption apply when several apartments have been joined up?
If an apartment owner has joined several apartment properties into a single apartment, this must be reflected in the Land Register. If according to the Land Register, the apartment properties are not joined up, then the apartment owner will receive a tax exemption for only one apartment property’s area. To join up apartments, you must contact the construction department of the Tallinn Urban Planning Department.
Will a homeowner with a lease receive a tax exemption?
No, because the lessee is not a land tax subject according to the Land Tax Act. The lease should be converted into a housing loan and the lessee registered as the owner of the property in the Land Register.
Does the possessor of a personal right-of-use receive a tax exemption?
No, because the possessor of the personal right-of-use is not a land tax subject according to the Land Tax Act. Only the superficiaries and usufructuaries receive tax exemptions.
If I have an additional address registered as my place of residence in the Population Register, will I receive the homeowner’s tax exemption for it?
No, since, according to subsection 65 (1) of the Population Register Act, a person must register in the Population Register the address where they reside permanently or predominantly. Under subsection 65 (2) of the same law, if an individual uses multiple addresses as their primary or predominant residence, they must include all of these addresses in the Population Register, designating only one of them as the registered place of residence. The rest of the addresses will be registered in the Population Register as additional addresses.
Where can I see the taxable value of my land?
You can check the value of any plot of land on the latest valuation page of the land cadastre at minu.kataster.ee by searching for the desired cadastre unit using either its address or cadastre attributes, then accessing the ‘Land value information’ section. After clicking on this, you will find a section labelled ‘Taxable land value (from 01.01.2024)’.
Why does a neighbouring property have a much higher/lower taxable value of land?
During the mass valuation of land, each piece of land was assigned a value based on its unique attributes.
How does the land tax apply to unreformed land not entered into the land cadastre and is it eligible for tax exemption?
The total land tax of unreformed land not entered into the land cadastre will be calculated based on the taxable value of land with no intended use. The owner of a building located on a plot of land with no intended use must register the intended purpose of their land to be eligible for exemption from land tax.
A total land tax of up to 64 euros must be paid according to the Tax and Customs Board’s tax notice by no later than 31 March. At least 50% of a total land tax of more than 64 euros must be paid by no later than 31 March, but the paid amount must not be less than 64 euros. The rest of the total land tax must be paid by no later than 1 October.
Mass valuations of land
The mass valuation of land is a market-based valuation of land that results in an approximate market value or taxable value being determined for every cadastral unit.
The data of the mass valuation will be utilised for purposes such as land taxation, user agreements, assessing utility grid tolerance compensation, transactions, financial reporting and more.
There have been four mass valuations of land in Estonia: in 1993, 1996, 2001 and 2022. The results of the 2001 mass valuation are currently in force. The results of the 2022 mass valuation entered into force on 1 January 2024.
The 2022 valuation results were made public on 31.10.2022. Everyone can access the valuation results and give feedback to the Land Board if, for example, there are flaws in the primary data. If a flaw is identified, the data can be corrected. The Tax and Customs Board will use the new data for land tax rates starting in 2024. This means that data can be easily corrected until the end of 2023 by notifying the Land Board. If the flaw is identified later, it can still be corrected. However, this would involve a more complicated process that also involves a re-valuation of land tax.
You can check the value of any plot of land on the new valuation page of the land cadastre at minu.kataster.ee by searching for the desired cadastral unit using either its address or cadastre attributes, then accessing the ‘Land value information’ section. After clicking on this, you will find a section labelled ‘Taxable land value (from 01.01.2024)’, which takes you to the land valuation page. You can access various sections on the valuation page, detailing the factors used in the valuation model and their impacts.
Information regarding the 2022 mass valuation can be found on the Land Board webpage.
Watch the Land Board’s explanatory video about mass valuations:
Land valuation will start taking place every four years. This means that the next valuations will be in 2026, 2030, 2034, and so on.
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Legal acts related to the land tax and the taxable value of land
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Legislation of the City of Tallinn
Establishing the land tax rate
The procedure for exempting a repressed person and a person equal to a repressed person from land tax
Statute of the Tallinn Land Tax Register
Tallinn Property Department Statute
State legislation
Land Tax Act
Land Valuation Act
Land Reform Act
Nature Conservation Act
State Pension Insurance Act
Persons Repressed by Occupying Powers Act
Taxation Act
Land Cadastre Act
Procedure for calculating and paying land tax and applying for a tax incentive
Methodology of mass valuation of land
Taxation rates of illegally expropriated land
List of publicly used water bodies
Water Act
Don’t hesitate to seek advice!
Tallinn Property Department, Land Procedures Unit
Address: Vabaduse väljak 10, 10146 TALLINN
Phone: 640 4454
Email: [email protected]
Consultations:
Mon 14.00-18.00,
Thu 09.00-12.00
Vabaduse väljak 10, 5th floor
The Land Procedures Unit is open to any questions related to
the land tax on land located in the administrative territory of Tallinn.