A new draft law, set to start January 1, 2027, would bar many Russian and Belarusian buyers unless they hold permanent residence permits.
Estonia plans legislative changes that will restrict the purchase of real estate by citizens of Russia and Belarus without a permanent residence permit. The Ministry of Internal Affairs has drafted the bill with a focus on increasing national security and transparency in the real estate market.
According to a preliminary reading of the text, the act is expected to take effect on January 1, 2027. It also proposes a ban on the purchase of real estate in Estonia by companies from Russia and Belarus, as well as for legal entities where Russians and Belarusians are the actual beneficial owners. The explanatory memorandum notes that the restrictions are intended to reduce the risks of using real estate objects for espionage or sabotage activities against the country.
Key Provisions of the Bill
“People retain the ability to lease or rent real estate, and the government of the republic may, for reasons important to the state or for humanitarian considerations, grant permission to acquire real estate”
– Explanatory note
The ban will not apply to Russian and Belarusian citizens with permanent residence permits, as their backgrounds have already been checked by the relevant authorities.
The project also provides for preventing circumvention of restrictions through companies in Estonia or in the European Economic Area, requiring verification of the beneficiaries’ citizenship. The government leaves the possibility, in exceptional cases, to still grant a permit to acquire.
According to the authors’ estimates, the new rules will affect about 600 deals per year, so the impact on the real estate market will be moderate.
The practice of the region’s countries – Finland, Latvia, and Lithuania – inspires Estonia to strengthen control over real estate purchases by citizens of third countries for security reasons.
As of April 2025, among real estate owners in Estonia there were 36,952 citizens of the Russian Federation and 896 citizens of Belarus registered. It is also known that 7,797 people hold temporary residence permits and 70,237 have permanent residence permits.
In July 2025, Finland introduced a similar regime regarding real estate transactions for citizens of Russia and Belarus.
Ultimately, Estonia will continue to monitor the situation and align regulation with international practice, emphasizing transparency and national security in the realm of real estate ownership.