Estonia, Financial Services, Real Estate, Taxation

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Estonia's Tartu raises land tax rate

BC, Tallinn, 07.12.2018.Print version
The council of Tartu on Thursday voted to raise the land tax rate in the city to 2 % of the taxable value of land starting from 2019, reported LETA/BNS.

The motion was passed by a vote of 30 to nine, the city government said.


The rate of the land tax in Tartu in 2002-2018 was 1% of the taxable value of land, the lowest such rate among the municipalities of Estonia at present. 


Under law, the rate of land tax can be from 0.1 to 2.5% of the taxable value of land per year.

The rate of tax was raised because from 2019 onwards, the state takes land tax receipts into account to the maximum possible degree in the allocation of money from the equalization fund meant for harmonizing the opportunities for performance of the municipality functions of towns and cities and rural municipalities.


The budget of Tartu for 2019 envisages receipts of land tax in the amount of slightly over 1.5 mln euros, some 800,000 euros more than this year. 


Starting from 2013, across Estonia, up to 1,500 square meters of land in high density areas and up to 20,000 square meters of land in low density areas land belonging to owners whose registered place of residence is on the same land plot is exempted from the land tax. Besides, Tartu applies an exemption of 25 euros to pensioners, victims of repressions and people having partial or no work ability.






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