Nearly 335,000 private persons will have to pay a total of around 21 million euros of land tax by 31 March. Around 35,000 legal persons who own property have to pay a total of approximately 27 million euros by the same deadline. The remaining tax liability must be paid by 1 October.
Riita Parksepp, the owner of the land tax service at the ETCB, points out that homeowners still benefit from the tax incentive for land under their homes this year. “If you own land subject to land tax, sign in to our e-services environment to open the tax notice and pay the land tax. Sign in and select Taxes – Land tax – Land tax notices and land data,” Parksepp explained.
What is different about land tax this year?
The amount of the first instalment changed. If the amount of land tax exceeds 100 euros within one municipality, the amount of the first instalment is at least half, but not less than 100 euros. However, if the total amount of tax is less than 100 euros, the entire amount of tax must be paid in one instalment by the first due date.
Land tax rates of many local governments were amended. The tax rate for residential land and the land use type of yard land on profit-yielding land is between 0.1 % and 1 % this year. The tax rate on profit-yielding land remains between 0.1 % and 0.5 %. The tax rate for land with other intended purpose is between 0.1 % and 2 % this year. The tax rates established by local governments for 2025 can be found on the website of the ETCB.
The limit on land tax increase, i.e. the so-called protective mechanism changed. The protective mechanism is designed to prevent the tax on a plot of land from increasing too sharply compared to the previous year. In 2025, the land tax on each cadastral unit will increase for each owner by up to 50% compared to the previous year or by 20 euros if no tax exemptions or tax incentives are applied to the plot. If the increase of 50% compared to last year’s land tax is less than 20 euros, the amount of land tax will increase by 20 euros. However, if tax exemptions or tax incentives are applied to a cadastral unit, the land tax payable in 2025 can differ by more than 50% or 20 euros compared to the tax amount of the previous year.
The basis for calculating the tax is the value of the land determined by the Land and Spatial Development Board. If you have any questions about land valuation, please contact the Land and Spatial Development Board at [email protected]. If you have any questions about tax rates, please contact the local government of the location of the land. If you have any questions about how the tax is calculated and payment, please contact the Tax and Customs Board.
Land tax is a state tax that is levied on all land in Estonia. Tax rates are established by local governments. Land tax is paid in full into the budget of local governments, with the help of which local governments can develop local life and offer services intended for local people.
More information about land tax can be found from the ETCB web site.
