The Estonian government has approved a bill that would prohibit Russian and Belarusian citizens who do not hold permanent residence permits in Estonia, as well as companies from those countries and legal entities under their control, from purchasing real estate anywhere in the country.
According to the Estonian government, the purpose of the amendments to the Immovable Property Acquisition Restrictions Act is to reduce the risk that real estate could be used by hostile states for intelligence activities, espionage, sabotage planning or the establishment of strategically important positions.
Interior Minister Igor Taro said that, given the changed security situation, Estonia must close off opportunities that hostile states could exploit against it.
“Russia has demonstrated that it uses every tool at its disposal to achieve its goals — from military force to intelligence, influence operations and sabotage. Real estate can also provide an opportunity to establish permanent bases in Estonia, gather intelligence or prepare activities near strategic facilities. The Estonian state is under no obligation to allow citizens of aggressor states and companies under their control to acquire property here without restrictions,” he said.
The bill would give the government the authority to designate countries whose citizens and companies could pose a threat to Estonia’s security or public order through property ownership. Initially, Russia and Belarus are expected to be included on that list.
The restriction would apply to citizens of those countries who do not have permanent residence permits or permanent residency rights in Estonia. It would also apply to companies registered in Russia or Belarus, as well as legal entities registered in any country if their ultimate beneficial owner is a person subject to the restrictions.
“The restriction must work in practice, not just on paper. That is why it cannot be circumvented by establishing a company in Estonia or another European country to purchase real estate. In every transaction, it must be determined who actually controls the company and on whose behalf the property is being acquired,” Taro said. “Estonia is acting in the same way as its neighbors Finland and Latvia, which have already introduced similar restrictions. By acting together, we will strengthen the stability and security of the entire region.”
The restriction would apply throughout Estonia and would cover apartments, building rights and the acquisition of undivided ownership shares in real estate. The law would not have retroactive effect and would not affect property already owned. It would also not apply to Russian and Belarusian citizens who have permanent residence permits or permanent residency rights in Estonia. Renting property would remain permitted.
In justified exceptional cases, the government would be able to authorize a property purchase if the transaction does not undermine the purpose of the restrictions.
According to the explanatory memorandum, the bill is expected to have only a limited impact on Estonia’s real estate market. Based on 2025 transaction data, the proposed restrictions would have affected approximately 600 real estate transactions.
The law is expected to enter into force on January 1, 2027.
