Accounting, Payroll, Tax & Legal since 1989

Land tax is a tax based on the taxable value of land calculated by the Tax and Customs Board on the basis of information received from the corresponding local government and it is fully paid into the local government budget. The land tax shall not require the taxpayer to provide the declaration itself. The tax authority shall calculate the amounts payable and send a notice to the taxpayer

The land tax shall be paid:

1. by the owner of land or
2. unless land use is re-registered pursuant to the procedure prescribed by the Land Reform Act, the land use shall be paid by users of land;
3. upon the constitution of the right of superficies in land, land tax shall be paid by the superficiary instead of the owner of land;
4. upon the constitution of the right of a usufruct in land, land tax shall be paid by the usufructuary instead of the owner of land;
5. if an immovable in state or municipal ownership is granted for the extraction of mineral reserves, land tax shall be paid by the person who obtains the right to use land.

The tax rate of land shall be 0.1 to 2.5 per cent of the taxable value of land annually.

Land tax up to 64 euros on any land located in the local government unit shall be paid all at once by 31 March. At least half of the land tax, which exceeds 64 euros, shall be paid by 31 March, but no less than 64 euros. The remaining part of the land tax shall be paid not later than by 3 October 2016.

The Tax and Customs Board shall issue a tax notice to a tax payer concerning the amount of land tax due not later than by 15 February. A taxpayer who have not receive a tax statement should be an active and investigate why no notification was sent. Non-receipt of a notice does not relieve the obligation to pay land tax. A taxpayer who has not received a land tax notice of the taxation year by 25 February is required to notify the Tax and Customs Board thereof within thirty days. In that case a new tax notice shall be issued to the taxpayer. 

There is Land tax incentive for land under home in Estonia.

For the application for land tax incentive to the land under home, four facts needed to be present simultaneously:

1. The person must be the owner or user of the land for the purposes of § 10 of the Land Tax Act
2. The land must be with intended purpose of residential land or with intended purpose of profit-yielding land which comprises the land use type of yard land;
3. A building shall be located on the land;
4. The permanent residence of the owner or user of the land shall be in the building located on this land pursuant to the residence data entered in the population register.

The land tax exemption is valid only for a certain size of land. The residential land only shall be exempt from land tax to the extent of 0.15 hectares in a densely populated area (i.e. in cities, in cities without municipal status, towns, small towns and areas designated densely populated areas by a comprehensive plan by a local government of a county plan by a county governor) and to the extent of 2.0 hectares elsewhere.