When buying or selling a house in Estonia, there are several taxes and fees that must be taken into account. These include:
- Property transfer tax: A tax on the transfer of property, typically paid by the buyer. The rate is 2% of the sale price.
- Notary fees: Fees for the notary public to witness and certify the sale. These fees are typically paid by the buyer and can range from 0.2% to 0.6% of the sale price.
- Real estate agent fees: If a real estate agent is used, they will typically charge a commission of 2-3% of the sale price, which is usually paid by the seller.
- Other miscellaneous fees: These may include fees for title searches, appraisal, and other services related to the purchase or sale of the property.
Property Tax in Estonia
In Estonia, property tax, also known as “maa maks” is a tax on the value of real estate. The tax is based on the cadastral value of the property, which is determined by the local government. The rate varies depending on the municipality and the type of property, but typically ranges from 0.1% to 2% of the cadastral value.
Capital Gains Tax (CGT)
In Estonia, capital gains tax, also known as “Tuludeklaratsioon” (ISG), is a tax on the sale of assets, including real estate. The tax rate is 20% on the capital gain, which is the difference between the selling price and the purchase price of the property.
and Gift Tax in Estonia
In Estonia, there is no inheritance tax or gift tax on the transfer of property.
Tax on Property Income in Estonia
In Estonia, property income tax, also known as “Tulumaks” (ISR), is a tax on rental income from property. The tax rate is 20% on the net income from the property.
Tax Advantages in Buying a House in Estonia<,strong>
In Estonia, there are several tax advantages for homeowners. These include:
- Tax deductions for mortgage interest: Homeowners can deduct the interest paid on their mortgage from their taxable income.
- Tax deductions for property repairs and maintenance: Homeowners can deduct the cost of repairs and