![]() |
On first blush, many investors who are interested in
putting money in foreign real estate might flip past
Estonia without giving it any thought. Indeed, historically
Estonia has not been a country in which foreign nationals
have been active in the real estate market. In point
of fact, for a significant portion of the history of
Estonia, foreign ownership of real estate was prohibited
for tightly and highly regulated.
Of course, one of the primary reasons that foreign investors
have not been active in the Estonian real estate market
historically is the fact that through much of its history,
Estonia has been occupied or controlled by other nations.
Over the course of the past decade, as Estonia has gained
its independence, the government has worked to liberalize
the laws governing the ownership and sales of real estate
in that country. This has included opening the door
wider to more foreign investment in real estate in Estonia.
While there has not been a rush of foreign nationals
buying property in Estonia as of this point in time,
there is a steady stream of these people buying real
estate in different locations in Estonia. Industry analysts
believe that the number of people who will invest in
Estonian real estate should continue to increase at
a steady, but not flooding, pace.
|
|
![]() |
Investment Property in Estonia |
![]() |
![]() |
As referenced previously, historically Estonia has not been
a country that attracted a great deal of foreign investment
in real estate. This is starting to change at this point in
time. Thanks to a relaxation of the laws governing foreign
investment in real estate, some foreign nationals are taking
another look at investing in property in Estonia.
In this regard, people who have taken the step of investing
in real estate in Estonia are doing so on the gambit that
property values in that country will increase as the country
becomes more active on the world economic stage. Most analysts
believe that this is, in fact, a safe bet.
Primarily, foreign nationals are investing in commercial and
residential properties at about an even pace. In many instances,
foreign nationals are buying real estate in Estonia and then
working to develop it for either commercial or residential
purposes. In some areas in the country, foreign nationals
have been leading the way in real estate related development
projects, particular citizens of European nations.
At the present time, there are no significant restrictions
regarding foreign investment in real estate. Again, the government
of Estonia has been dedicated to streamlining and liberalizing
the real estate sales process -- including for foreign nationals.
|
![]() |
Residential Property in Estonia |
![]() |
![]() |
The state of the single family, residential real estate market
in Estonia varies significantly depending on what part of
the country is being considered. For example, in the larger
cities in the country, a more concerted effort is being made
to develop new residential properties in single family style.
In addition, a more concerted effort is being made to rehab
and renovate older single family residential properties in
Estonia to bring these properties into the 21st century.
In some instances, older residences that were once designed
for single families are now being retrofitted to be used as
multiple apartment units. Indeed, many of the newly available
apartment units in many of the major urban centres in Estonia
are in fact rehabilitated residences that once upon a time
housed single families.
In the Estonian countryside, there are some stunning and elegant
villas and estates that can be purchased for a moderate price.
More often than not, these properties do require some renovation
work to bring them into livable condition. Some foreign nationals
are becoming involved in rehabbing these properties for resale
to others.
|
![]() |
Residential Real Estate - Apartments in Estonia |
![]() |
![]() |
Apartments in Estonia have attracted the most significant number of foreign
nationals to the real estate market at this point in time.
Foreign nationals seem to buying apartments in Estonia for
two primary reasons.
First, there is a growing number of foreign nationals who
are coming to Estonia to take part in the economic development
that is beginning to occur in that country. Consequently,
these foreign nationals need and require affordable housing
while they are in country. By and large, these foreign nationals
have found purchasing an apartment for their time in Estonia
to be a solid course to take,
Second, some foreign nationals have taken to purchasing apartments
for leasing to other individuals, including other foreign
nationals. This includes newly developed apartments as well
as older buildings and structures that foreign nationals are
purchasing and remodeling for usage as updated apartments.
These foreign nationals appear to be turning a decent profit
by purchasing and investing in these types of apartments.
In addition, more foreign nationals are becoming involved
in this types of investment as we move further into the 21st
century.
|
![]() |
Holiday Property in Estonian Holiday Resorts |
![]() |
![]() |
The vacation real estate market in Estonia is only now on
the verge of moving forward. Presently, the tourist trade
into Estonia is not one of the most significant industries
in that country. However, the government as well as certain
elements of the private sector are working to attract more
visitors and tourists to Estonia each year.
Some foreign nationals have begun to make modest investments
in the vacation real estate market. Some foreign nationals
have come together with Estonian nationals to develop apartment
complexes and some stand alone villas in Estonia for holiday purposes.
While most real estate analysts do not anticipate an explosion
in the vacation real estate market in the immediate future,
these analysts do believe that there will be steady growth
in this area which will continue to involve foreign nationals.
Indeed, there are some attractive resorts that are now in
development in Estonia that should be completed within the
coming five years. |
![]() |
Specific Steps to Buying a Property in Estonia |
![]() |
| Overview |
![]() |
![]() |
![]()
The process of buying real estate in the Republic of Estonia can seem a bit complicated on the surface. With that said,
the government of the Republic of Estonia has worked rather
diligently to liberalize and modernize the laws governing
the buying and selling of real estate in that country. In
this regard, a good deal of effort has been expended making
it a bit easier for foreign nationals to buy real estate in
Estonia.
There are two primary contracts involved in the sale of real
estate in Estonia. Both documents are prepared by a notary.
Indeed, in Estonia it is mandatory that a notary be involved
in the real estate sales process, that a notary prepare these
primary documents. (As an aside, in some instances the notary
does not need to prepare these documents his or her self.
But, if someone else drafts these documents, the notary is
legally required to review them in detail to make sure that
they meet the requirements of Estonian law and reflect exactly
the agreement that has been made between the parties.)
The initial agreement in the Estonian real estate sales process
is the sales-purchase agreement. This agreement is prepared
by the notary and is executed by the buyer and the seller
once the seller makes an offer on the property that is for
sale. Generally speaking, once the oral offer is made by the
buyer to the seller, the sales-purchase agreement can be prepared
and executed with a period of ten to thirty days (depending
on what needs to be included in the agreement itself).
During the period of time between the execution of the sales-purchase
agreement and the final agreement in the sales process, the
buyer obtains financing and the seller makes certain that
the property physically and legally is in a position to be
conveyed and transferred to the buyer. In addition, during
this interim period, the buyer must pay to the government
what is known as a state fee -- which is in the amount of
0.4% of the value of the real estate being sold and purchased.
The final agreement in the real estate sales process in Estonia
is entitled the transfer of ownership in real estate agreement
or document. When this document is duly executed by the parties,
an application is made to the Land Register Office to transfer
the ownership of the real estate from the seller to the buyer.
In addition, following the filing of this application, a public
notice of the change in ownership of the real estate is published
in the Official State Gazette, the official publication in
Estonia that publishes legal notices of this nature.
In summary, the process of buying real estate in Estonia does
include a number of hurdles that seem confusing and complicated
on the surface. But, as has been noted, the laws have been
modernized and liberalized in recent years. Chances are quite
good that the government of Estonia will continue to work
to make the real estate laws in that country a bit more "user
friendly" and less cumbersome in the future.
Property Abroad always recommends using a Solicitor
or Lawyer
|
![]() |
Further Information
on Estonia |
![]() |
|
ESTONIA
