When is selling an apartment tax-free in Estonia?

Selling property is exempt from income tax if it was the taxpayer’s place of residence (Income Tax Act § 15(5)(1)). This exemption can be used for one sale within two years.

Which costs can be deducted from the sale proceeds?

You can deduct the acquisition cost (purchase price or construction cost), costs directly related to the sale (notary fee, state duty, broker fee) and documented improvement costs (renovation invoices).

Estonia Real Estate Capital Gains Tax Calculator 2026

checklist Exemption check and costs

This was my place of residence

The apartment or house was used as a residence until the sale, and the exemption has not been used in the last 2 years.

Sale price (€)

Acquisition cost / purchase price (€)

Original purchase price or construction costs.

Documented improvement and renovation costs (€)

Only major repair and renovation costs backed by invoices.

Sale-related costs (€)

Broker fee, notary fee, appraisal fee.

When do you pay income tax on selling property?

Under the Estonian Income Tax Act (rate 22%), tax is charged on the gain from selling property, not on the full price. The taxable gain is calculated as:

Taxable gain = sale price − acquisition cost − documented improvement costs − costs directly related to the sale

Residence exemption (Income Tax Act § 15(5)(1)) ↗ EMTA source

Gains from selling land, a house or an apartment are not taxed if the dwelling was used as the taxpayer’s place of residence until the sale.

Two-year rule (Income Tax Act § 15(6))

The exemption applies to one residence sale within two years. If you have already used it in the last two years, the next sale is taxed at the standard 22% rate.

Deductible costs (Income Tax Act § 37) ↗ EMTA source

Documented costs of acquiring and improving the property can be deducted from the gain (e.g. notary fees, state duties, appraisal fee, broker fee and repair or construction costs that increased the value).

Not deductible: ordinary property-management costs, such as utility bills or electricity invoices, cannot be deducted from the gain — even if paid during the sale period.

Declaring and paying the tax ↗ EMTA source

The taxable gain arises in the calendar year the sale proceeds are actually received, not the year the sale contract is signed. If the sale is not exempt, it must be reported on the resident individual's income tax return (Form A) by 30 April of the year following the year the gain was received. Any tax due must be paid to the Tax and Customs Board by 1 October of that same year.

Legal note: this calculator and explanation are based on the current Income Tax Act and public guidance from the Estonian Tax and Customs Board. The information is general and does not replace tax advice. For complex ownership or inheritance questions, contact the Tax and Customs Board.

Methodology and rules reviewed: June 2026 · EMTA source: Maksu- ja Tolliamet (EMTA)