| 1. Are
there any restrictions on an overseas company or business
buying commercial property? |
No, except the acquisition
of agricultural or forestry land, e.g. foreign companies
not registered in Estonia may acquire land only upon
approval of the county governor. There are also restrictions
on transfer of land on certain islands and border areas. |
| 2. Is
land/property generally ‘registered’ so
that the title/ownership is guaranteed? |
Yes. The Public Title
Book maintains information regarding the legal status
of land plots, buildings, apartments, rights, and encumbrances
etc.). The information is guaranteed. |
| 3. What
are the basic requirements/procedures? |
Written agreement and
then an application for registration in the Public Title
Book. The ownership is established upon the entry to
the Public Title Book. |
| 4. On
average, how long does the process take? |
The registration should
be made not later than within three months after the
date of receipt of the application. Registration may
take up to 4 months but is generally much less. |
| 5. What
searches are advisable? |
Request appropriate extracts
from the Public Title Book, the Cadastre and the Register
of Structures. |
| 6. What
are estimated disbursement costs? |
Registration of ownership
title is a state duty. The acquisition transaction must
be notarised to be valid. The notary fees are payable
according to a Notary Fee Act -usually less than 1%
of the value of the transaction. |
| 7. What
are the local and/or national tax considerations in
the country of purchase? |
Depending on the type
of property and type of seller, VAT may be incurred
on the sale price. |
| 8. What
other annual local charges are obligatory? |
There is a land tax set
by local governments. The tax rate is 0.1% to 2.5% of
the assessed value of the land. The amount of tax depends
on the value and zoning of the land which is evaluated
in accordance with a Land Valuation Act. |
| 9. Are
there any other issues to consider? |
Environmental and zoning
information from local authorities. |
