Handbook “Transfer of immovable property”
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Transferring a dwelling with a storage room and parking space
The Estonian Tax and Customs Board treats these situations of transferring housings equally in taxation where:
- a dwelling with a storage room and a parking space which belong to the dwelling, are entered in the land register as one apartment ownership; and
- a dwelling with a storage room (non-residential premise) and a parking space (non-residential premise) are entered in the land register as independent apartment ownerships.
If a dwelling with a storage room and parking space registered as independent apartment ownerships are transferred by one sales transaction, the transaction will be subject to the tax exemption of the transfer of dwelling. With reference to the two-year-rule, it is considered as one sales transaction as well.
If a storage room or a parking space is transferred separately from the dwelling by another sales transaction (e.g. before or after the sale of the dwelling), or if the storage room or parking space were not used as parts of the dwelling but for commercial purposes (e.g. rented out or used for business), the sale will be subject to income tax.
Example
A person owned an apartment with a parking space and a storage room. He decided to give up the parking space and sold it in January 2024. The purchase price of the parking space was 10,000 euros and the sales price was 12,500 euros.
There were no costs related to the transfer.
In March 2024, the person decided to move to a larger apartment and sold the apartment used as a residence. Together with the apartment, the storage room was also sold.
Since the parking space was transferred two months earlier than the residence, the gain from the sale of the parking space must be declared and income tax must be paid. However, the sale of the residence and the storage room is exempt from tax.
Last updated on 08.01.2025
Tax-exempt or taxable transaction
This table provides a quick overview of real estate transactions that are exempt from tax when certain conditions are met. For more information about the transaction you are interested in, please view the handbook.
| Object of the contract of purchase and sale | Basis for tax exemption in the Income Tax Act | To the subject of ownership reform / a privatiser with the right of pre-emption / the owner | To a successor | To a legatee (is not a successor) |
To a legatee (is a successor) |
By gift or other transfer transaction |
|---|---|---|---|---|---|---|
| Property returned in the course of the ownership reform | § 15 (4) 5) | sale is exempt from tax | the tax exemption is passed on | the tax exemption is not passed on, gains are taxed | the successor's tax exemption applies | the tax exemption is not passed on, gains are taxed |
| Immovable property obtained by restitution after being unlawfully expropriated and the essential part of which is a dwelling | § 15 (5) 2) | sale is exempt from tax |
the tax exemption is passed on |
the tax exemption is not passed on, gains are taxed | the successor's tax exemption applies | the tax exemption is not passed on, gains are taxed |
| Immovable property privatised with the right of pre-emption and the essential part of which is a dwelling |
The dwelling together with land belonging to it has been privatised with the right of pre-emption and the size of the registered immovable property does not exceed 2 hectares. |
sale is exempt from tax | the tax exemption is not passed on, gains are taxed | the tax exemption is not passed on, gains are taxed | gains are taxed | the tax exemption is not passed on, gains are taxed |
| Summer cottage or garden house |
According to the register of construction works or the land register, the summer cottage or garden house has been in the person’s ownership for more than two years and the size of the registered immovable does not exceed 0.25 hectares. |
sale is exempt from tax | the tax exemption is not passed on, gains are taxed | the tax exemption is not passed on; if the conditions are met, the sale is exempt from tax | the tax exemption is not passed on; if the conditions are met, the sale is exempt from tax | |
| Expropriation on the basis of the Acquisition of Immovables in Public Interest Act | § 15 (4) 3) | sale is exempt from tax |
This table provides a quick overview of real estate transactions that are taxable (including, under certain conditions or in the absence of the required condition, taxable).
| Object of the contract of purchase and sale | Basis for taxation | Calculation of gains |
|---|---|---|
| Garage | § 15 (1) |
the difference between the acquisition cost and the sales price of the sold property |
| Land (agricultural or forest land) | § 15 (1) |
the difference between the acquisition cost and the sales price of the sold property |
| Real estate |
is not the residence and/or has sold the residence in less than two years |
the difference between the acquisition cost and the sales price of the sold property |
| Immovable property privatised with the right of pre-emption and the essential part of which is a dwelling |
there is no dwelling and/or land belonging to it has not been privatised with a right of pre-emption and/or the size of the registered immovable exceeds 2 hectares |
the difference between the acquisition cost and the sales price of the sold property |
| Storage space |
selling in a separate transaction from dwelling |
the difference between the acquisition cost and the sales price of the sold property |
| Parking spot |
selling in a separate transaction from dwelling |
the difference between the acquisition cost and the sales price of the sold property |
| Summer cottage or garden house |
not entered in the register of construction works or the land register, the summer cottage or garden house and/or owned by a person for less than 2 years and/or the size of the registered immovable exceeds 0.25 hectares |
the difference between the acquisition cost and the sales price of the sold property |
Last updated: 25.02.2026