Selling real estate in Estonia involves key financial regulations, primarily capital gains tax. However, Section 15 of the Estonian Income Tax Act provides critical exemptions allowing owners to sell their primary residence completely tax-free.
Under Section 15(5), transactions are exempt if the property was used as your permanent or primary residence until the sale. This exemption is strictly limited to one transaction every two years. The tax authority verifies residency using population registry records, utilities, and other factors.
Inherited properties require careful tax planning. The acquisition cost is carried over from the deceased donor's original purchase price, which can result in high tax liabilities if it is not your primary home. We advise consulting our certified area specialists to legally optimize your transaction.