Compared to 2024, there are approximately 22 000 new landowners and nearly 21 000 landowners whose previous tax liability has remained below 5 euros and therefore no tax notice has been issued to them before.
In order for the tax notice not to come as a surprise in February, the owner of the land tax service at the ETCB, Riita Parksepp, asks landowners to review their data in the e-services environment. “The aim of the land tax forecast is to let people know their estimated land tax liability for 2025. We will calculate the final tax liability and issue tax notices from the first week of February and by 15 February at the latest,” said Parksepp.
Upon logging into the e-services environment, select Taxes – Land Tax – Land Tax Notices and Land Data to see the 2025 land tax forecast. Estimated land tax amounts for cadastral units can be viewed by selecting Taxes – Land tax – Land tax forecast.
The basis for calculating land tax is the value of the land. Land tax is calculated by multiplying the value of the land by the tax rate, minus the “protective mechanism” and tax exemptions and incentives.
The so-called protective mechanism is a limit on the increase of land tax, which has been established to prevent a sudden increase in land tax. The mechanism is applied if the amount of land tax of a cadastral unit before tax exemptions and incentives exceeds the amount of land tax before exemptions and incentives of the previous period by more than 50%.
Land tax can increase annually until it reaches the amount of land tax based on the taxable value of land and the land tax rate. In 2025, the land tax of a cadastral unit will not increase for the owner by more than 50% compared to the previous year or by 20 euros if tax exemptions or incentives are not applied. If 50% is less than 20 euros, the amount of land tax shall be increased by 20 euros. If a cadastral unit is subject to tax exemptions or incentives, the land tax payable in 2025 may differ from the previous year by more than 50% or 20 euros.
The ranges of land tax rates for 2025 are 0.1–1.0 per cent of the taxable value of the land per year for residential land and the land use type of yard land on profit-yielding land, 0.1–0.5 per cent of the taxable value of the land per year for profit-yielding land, and 0.1–2.0 per cent of the taxable value of the land per year for land with other intended purposes. Tax rates are established by local governments. The tax rates established by local governments for 2025 can be found on the website of the ETCB.
Data of plots of land can be checked in the Land Cadastre, owner data in the Land Register. If it appears from the forecast or cadastral data that the data on the value of the land on the basis of which the tax is calculated must be corrected, please contact the Land and Spatial Development Board at the e-mail address [email protected].
The ETCB also asks people to review their contact details in the e-services environment. “This is necessary so that we can inform people about the issuing of a land tax notice by e-mail or text message. If we do not have the taxpayer’s e-mail address or mobile phone number, we will send the tax notice on paper by regular mail,” Parksepp explained.
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. More information about land tax for 2025 can be found from the ETCB web site.
