3 Steps to Buying an Apartment in Estonia

Over the past five years, the proportion of foreign buyers in the Estonian real estate market has remained stable at around 7%. Lauri Laanoja, the Sales and Marketing Manager at Bonava Estonia, has even observed an increase in the share of foreign buyers among new home purchasers. “The proportion of foreigners among our clients has been increasing steadily. In 2022, 7% of our buyers were not Estonian citizens. In 2023, this figure rose to 9%, and during the first eight months of the current year, already 12% of our clients are foreign residents, says Lauri Laanoja.

Whether you are an investor or a foreign national who has relocated to Estonia, buying real estate is an important process that comes with a few key considerations. Estonia places minimal restrictions on foreign buyers, and the process of purchasing an apartment is similar for both foreigners and citizens. Lauri Laanoja highlights the main steps you usually should go through when buying a home in Estonia.

Research Financing Options

Before you start your property search, it’s essential to understand your financial options. “Consulting with multiple banks will give you an idea of the loan terms available to you, as different banks may offer varying conditions,” Laanoja advises. As a foreigner, you will typically need a residence permit and proof of stable income to qualify for a mortgage. Additionally, be prepared to make a down payment of 10-20% of the property’s value.

Search for Your New Home

Once you know your budget, you can begin searching for your future home. In Estonia, most of the real estate listings are available on major property portals such as kv.ee, city24.ee, and kinnisvara24.ee. “If you have a specific area or new development in mind, visiting the developers’ websites will usually provide an even wider selection of apartment options and special offers,” says Bonava Sales Manager.

When considering a property, it’s important to visit the site to assess the construction quality or how well the building has been maintained over time. “If you’re interested in a new development, most developers have a show apartment where you can understand and feel the quality firsthand. Additionally, ask about the associated costs, such as utility expenses, and check the building’s energy label,” Laanoja explains. Collecting this information will help you evaluate whether the total monthly costs, including your loan payments, are manageable.

Once you’ve chosen your preferred property, request a specific loan offer from your bank. You can fill in your application conveniently on bank’s home page.

Finalize the Purchase

After selecting your property and receiving loan approval, the next step is to arrange the necessary notary procedures. “A broker or sales consultant can assist you with this process. If you’re purchasing directly from the owner, make sure to agree on who will schedule the notary appointment and keep track of contract or notary fees. A representative from your bank must also be present at the transaction,” Laanoja describes.

In Estonia, the property transaction is governed by the "kinnisvara ostu-müügileping" or property purchase agreement. This document includes details such as the property description, price, payment terms, and any conditions for both parties, and it becomes legally binding once signed. It’s advisable to have a sworn translator present at the notary to ensure you fully understand the agreement.

“Once the contract is signed, the notary will forward the certified documents to the Land Register, officially transferring ownership to you. Congratulations—you are now a homeowner in Estonia!” Lauri Laanoja concludes.

Buying real estate in Estonia is a quite straightforward process. Local real estate agents or developer’s sales consultants are always ready to help to guide you through the process and local market specifics.

If you are a new in the country, there is a useful guide to help you settle in Estonia. You can find it here https://workinestonia.com/wp-content/uploads/2024/07/relocation-guide.pdf