Guide to Buying Property in Estonia

There are over a quarter of a million overseas property investors in Estonia and this figure looks set to rise in the near future. Many of these foreign property investors will have taken out mortgages to help fund their property and real estate purchases.

Mortgages in Estonia

Typically, a mortgage in Estonia will have an interest rate of about 4.5% upwards and providers are happy to lend for both residential and property investment purposes. The minimum loan value for most mortgage providers is 10,000 Euros and most require a 20% deposit. The average term for an Estonian mortgage is 30 years. Most Estonian mortgage providers will also look at the income of the property investor and the cost of the mortgage plus outgoings must not exceed the investor’s income.

The Estonian Property Buying Process

There are two major contracts which are involved in the sale and purchase of any Estonian property, and both will be prepared by a notary.

The initial agreement is the sales-purchase agreement and this is executed by both the property vendor and purchaser as soon as the seller has received an offer for their property which they are happy to accept. The property purchaser will then look to get financing for their Estonian property whilst also paying the state fee to the government – this is 0.4% of the purchase price.

The transfer of ownership is then executed by both parties and an application will be made to the Estonian Land Registry Office to transfer the property across. A public notice of the change in ownership is then published in the Estonian Official State Gazette.

Read our free guide to the best places to buy in Estonia.

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  1. George | Aug 26, 2009 | Reply

    Where is the source of information “There are over a quarter of a million overseas property investors in Estonia”

    I find that very hard to believe in a country with a population of only 1.5m people!

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