Foreign property: tax return for Estonian residents

An Estonian tax resident who owns a flat in Bulgaria, Georgia or Spain has to tell the Estonian Tax and Customs Board (EMTA) about it in the yearly income tax return. Estonia taxes residents on income from all countries; what the foreign country has already taxed is either credited or exempted, but in most cases it is still declared. This guide sets out the rules for rent and for sale, the tables of the return and the dates. It is informational, and we marked what we could not confirm.

Which rule applies to you: resident or non-resident

An Estonian resident declares income from all foreign sources, including rent, gains on sale of property and other income taxed in Estonia. A non-resident is taxed in Estonia only on Estonian-source income, for example a gain on selling Estonian real estate, so foreign property would not normally be an Estonian matter for them. Residence is decided under Estonian law (permanent residence and days spent); if your situation is mixed, see our article on tax residency when relocating and ask EMTA. The rest of this text is for Estonian tax residents.

Rent from the foreign property

EMTA states that foreign rent follows the same principles as other foreign income: it is declared in the Estonian income tax return. EMTA's table 8.1 is for foreign income taxable in Estonia and table 8.8 for foreign income that was already taxed abroad and is not taxed again; in both cases the return is filed and the original foreign tax documents serve as proof. The personal income tax rate in Estonia is 22% for 2026 (the planned increase to 24% was dropped); the EMTA page on rental income gives 22%.

For residential rent in Estonia, EMTA lets the landlord deduct 20% of the rent automatically without receipts. We could not confirm that this rule applies to rent from property abroad, so assume that expenses must be documented and ask EMTA before you apply a flat deduction.

Selling the property

EMTA writes that the gain on selling foreign real estate is taxable in Estonia also when the gain was taxed abroad. The gain is the sale price minus the acquisition cost; for inherited foreign property the foreign inheritance tax actually paid can be added to the cost. The gain and the tax paid in the property country go into table 8.3 of the return, and Estonian tax is reduced by the foreign tax paid under that country's rules. The rate is 22%.

There are two ways the sale can be exempt. First, the home exemption: the sale of a dwelling you used as your residence until the sale is exempt, wherever it stands, and EMTA says this can be used once in two years. Second, the treaty exemption: if the property stood in a country that has a valid tax treaty with Estonia using the exemption method (EMTA lists such countries, among them the United Arab Emirates), the gain is exempt in Estonia and goes into table 8.8. Different EMTA pages differ on whether a home-exempt sale still has to be shown in the return, so confirm that before you stay silent.

Foreign tax: credit or exemption

Two methods apply. Under the credit method the Estonian tax is reduced by the foreign tax paid; if the foreign tax is lower you pay the difference in Estonia, and the credit is limited to tax that was due under the foreign country's law and the treaty. Under the exemption method the income is not taxed in Estonia, but it must still be declared because it affects other items, such as the tax-free allowance. Which method applies is set by the treaty between Estonia and the property country and by the type of income. We did not check each treaty. EMTA's lists of treaties are on its website.

Dates

EMTA gives 30 April of the following year for the return and 1 October for any additional tax. A return can be filed in EMTA's e-service.

Reporting the asset itself

We found no separate Estonian duty to report foreign real estate or foreign accounts as assets for an individual, apart from the declaration of income and gains above. We cannot rule out other duties, so ask EMTA or your adviser. Banks exchange account data under international rules, so keep your return consistent with your accounts.

What a Russian-speaking resident should prepare

• The purchase deed and the list of acquisition costs (taxes, notary, agent, renovation), with certified translations if the originals are not in Estonian or English.
• Lease contracts or platform statements, and the foreign tax return, assessment or withholding certificate, in original, because EMTA asks for the original proof of foreign tax.
• Bank statements for the rent, in the same name and the same Latin spelling as in Estonian records.
• A note of the exchange rates used. Keep it so the euro figures can be reproduced.
• Access to EMTA's e-service (ID card, Mobile-ID, Smart-ID or a bank). Check whether the page you need has an English or Russian version.

FAQ

Do I pay twice on the flat abroad? No if the foreign tax is credited or the income is exempt by treaty, but you still file in Estonia.

Is a gain on a home I lived in abroad taxed? The home exemption can apply to a dwelling you used as your residence, once in two years. Confirm with EMTA how to document the residence.

Which table do I use? Table 8.1 for taxable foreign income, 8.3 for the gain on foreign real estate and the tax paid abroad, 8.8 for foreign income that is exempt or already taxed. Check the current form.

What is the rate in 2026? EMTA gives 22% for personal income tax.

When is the payment? EMTA's date for additional tax is 1 October.

How we help

D.H. Realting is a trilingual platform (Russian, English, Polish) that finds properties abroad and coordinates independent local lawyers and tax advisers, including advisers who know Estonian residence rules. Our calculators and the total cost of ownership checklist show the full costs before you buy. Official sources: EMTA, income received abroad and EMTA, sale of foreign real estate. This text is informational and is not legal, tax or investment advice; verify current rules with EMTA or an adviser.