Estonia: Taxes and Costs
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Find Property
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Price/GDP per Cap
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Price Change 1 yr
- Price Change 5 yrs
- Price Change 10 yrs
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Taxes are high in Estonia
Effective Tax Rate on Rental Income |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 21% | 21% | 21% |
| Click here to see a worked example | |||
Source: |
Disclaimer | ||
INDIVIDUAL TAXATION
Non-resident individuals earning income through renting out Estonian property are liable to pay income tax. Married couples are taxed separately but may file jointly.
INCOME TAX
Non-residents are liable to pay taxes on their income from Estonian sources. A flat rate of 21% is imposed on taxable income in 2008. No deductions and personal allowances are given to non-resident taxpayers, although residents of other EU member states are granted the same deductions that Estonia offers to its residents, provided they received at least 75% of their taxable income from Estonia and they file tax returns.
The income tax rate will go down for the next couple of years. The applicable tax rate for 2009 is 20%, 19% for 2010, and 18% for 2011.
RENTAL INCOME
Income earned from rental payments is subject to the flat income tax rate of 21% in 2008. This is taxed by way of withholding, which are final taxes and does not obligate the non-resident recipient to file returns.
CAPITAL GAINS
Capital gains are included in the computation for taxable income, and taxed at the standard rate of 21% in 2008. Income of non-residents from the sale of property is subject to income tax by way of assessment.
Taxable capital gain is generally computed as gross selling price less acquisition costs. Gains from the sale of a summer cottage or garden house are exempt if owned for more than 2 years.
PROPERTY TAX
Land Tax
Land owners in Estonia are liable to pay an annual land tax, levied on the market value of the land. The rate is established by the municipal council and varies between 0.1% and 2.5%.
Estonia - more data and information
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.
RSS
Your Comments
Be the first to comment!