Private individuals and companies are free to purchase houses, apartments and other buildings in Estonia, as well as the land the properties are located on – though if large amounts of forest or agricultural land are to be purchased it has to be through a company, and the company has to have been active in the relative field of work for at least three years. It should be noted – though it is a very rare occurrence – that the Estonian government has the right to veto any purchase of property in Tallinn’s Old Town region if it is seen as fit to do so, and there are a number of nuances in Estonian law protecting property in the Old Town area – budding off plan investors should be aware of these laws, or have an agent or lawyer who is.

Once a property is decided upon, a contract is drawn up for both buyer and seller to sign in the presence of a notary – this contract is called a pre-purchase protocol and is legally binding from the moment it is signed, so there is no ‘cooling off’ period in which decisions can be changed. As a result of this, it is imperative that a reliable local lawyer is hired beforehand to help oversee the buying process and advise the buyer on potential pitfalls. A deposit is paid to the seller on signing the contract, usually of around 10 percent but sometimes up to 20 percent, and a penalty is levied if either party pulls out of the sale after the contract signing. An application is then sent to the local Land Registry, asking for the property to be signed over to the buyer in the land register book – whilst this process is taking place public notice of the sale must be published in the State Gazette. This is a simple formality and takes very little time. Once the title is signed over to the buyer, the purchase can be completed and funds can be transferred to the seller, usually via a notary.

Once the purchase is completed, a number of fees and taxes are paid including notary, agent and lawyer fees, along with stamp duty. Estonia has a liberal taxation system and a number of taxes do not apply to foreigners.

The buying process in Estonia is a lot more efficient than that of a lot of other countries, and purchases can be fully complete within four to six weeks. Foreign off plan investors are party to the same laws and regulations as Estonian nationals and are free to rent out properties, renovate (with official authorisation) and to sell them on.