#

Ease of Doing Business in

Estonia

Estonia Download Profile (1713.6KB, pdf)
Region OECD high income
Income Category High income
Population 1,311,998
GNI Per Capita (US$) 18,480
City covered Tallinn

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 12 11 down
1
81.05 81.01 down
0.04
Starting a Business 14 11 down
3
95.13 95.06 up
0.07
Dealing with Construction Permits 9 10 up
1
82.57 82.55 up
0.02
Getting Electricity 38 33 down
5
83.20 83.25 down
0.05
Registering Property 6 4 down
2
91.02 91.01 up
0.01
Getting Credit 32 29 down
3
70.00 70.00
-
Protecting Minority Investors 53 51 down
2
60.00 60.00
-
Paying Taxes 21 19 down
2
88.04 87.89 up
0.15
Trading across Borders 17 17
-
99.92 99.92
-
Enforcing Contracts 11 11
-
75.16 75.16
-
Resolving Insolvency 42 41 down
1
65.46 65.28 up
0.18

DB 2017 Rank:

6

DB 2016 Rank:

4

Change in Rank:

down2

DB 2017 DTF (% points):

91.02

DB 2016 DTF (% points):

91.01

Change in DTF (% points):

up0.01

STANDARD PROPERTY TRANSFER
Property value EUR 763,424
City Tallinn
Indicator Estonia OECD high income
Procedures (number) info_outline 3 4.7
Time (days) info_outline 17.5 22.4
Cost (% of property value) info_outline 0.5 4.2
Quality of the land administration index (0-30) info_outline 27.5 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    A notary prepares the Sale-purchase Agreement & the Agreement on Transfer of the Ownership of the Real Estate, and the parties sign it at the notary’s office

    Agency: Notary

    Pursuant to Estonian law, it is mandatory that all transactions related to the transfer of real estate are notarized by a notary public. The parties may prepare the sale and purchase agreement in accordance with the laws of the Republic of Estonia. However, the notary will review it and if the agreement is not in accordance with the law, then the notary will amend the agreement or ask parties of the agreement to modify the agreement in accordance with the law, since the notary is financially liable for any potential mistakes or law violations. Copies of all documents related to the agreement (transaction data, power of attorneys, documents concerning acquisition of the property, copies of identity documents, etc) shall be delivered to the notary’s office 3-4 days before the conclusion if the agreement. All originals shall be submitted to the notary on the day of the conclusion of the agreement. In case a document has not been issued in the Republic of Estonia, the document shall be certified by an apostille or legalized and translated into Estonian prior to the conclusion of the agreement. Since 2007 notaries use the E-Notary program which facilitates the preparation of notarial deeds. E-Notary offers contract templates and necessary data about parties to and object of a transaction come from different registers. By entering personal identification code or the name of a person into the box of details of the party, E-Notary finds the respective individual and completes, based on the data of the Population Register, the rest of the blank boxes - name etc. Upon the entry of registered immovable number, E-Notary finds and displays, based on the data of the electronic Land Register, other data related to the registered immovable – address, area etc. Once the contract is signed, the notary makes digital copy of the contract and the contract is thereof forwarded electronically to the Land Register.

    9 calendar days Notary fee according to the Notary Fees Act (Part 3 Article 22) is EUR 958.65 + 0.14% of the amount of the transaction value exceeding EUR 639,120 i.e. in total EUR 1,078.35. As this is a case of a bilateral transaction the notary fee for certifying the transaction is double the full fee i.e. 2*1,078.35=2,156.70. VAT of 20%.
    2

    Payment of the state fee (stamp duty) at a commercial bank

    Agency: Commercial Bank

    The state fee for making the changes in the Land Register must be paid prior to applying for registration.

    Less than a day (online procedure) State fee for a property transaction of EUR 673,296.00 is EUR 1,077.27 (If the transaction value is more than EUR 639,120.00, the full state fee rate shall be 0.16 per cent of the amount of the transaction value but not more than EUR 2,560). (Appendix 2, State Fees Act of 01.01.2015)
    3

    A notarized application is filed to the Land Register and corresponding entries are made to the Land Register

    Agency: Land Register

    The notarized application to the Land Register is filed to transfer the ownership of the real estate to the buyer in the Land Register Book. As of June 1, 2007, this application can be filed online through the "e-notary" system which allows the notary to submit the application electronically without using any paper application. Computerization of property records at the Land Registry have been ongoing for a few years has finally been completed at the end of 2008. Land Register shall publish a register notice regarding a Real Estate, which has not yet been entered in the Land Register only before opening a register part for an immovable in the register. The notice is published in the official publication Ametlikud Teadaanded and, if necessary, in any other manner available to the persons concerned. In case the Real Estate is already registered in the Land Register (as in this case), no publication is necessary. The documentation shall include: (i) Notarized Sale Purchase Agreement and Agreement of the Transfer of the Ownership of Real Estate (obtained in Procedure 1). (ii) Receipt of payment of state fee (obtained in Procedure 2)

    8 calendar days Already paid in Procedure 2

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 27.5
    Reliability of infrastructure index (0-8) 8.0
    What is the institution in charge of immovable property registration? Land Register Department of Tartu County Court
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 4.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://www.riigiteataja.ee/en/eli/ee/Riigikogu/act/501072015002/consolide
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://www.riigiteataja.ee/aktilisa/1260/2201/5018/RLS_lisa2.pdf# https:/...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: www.riigiteataja.ee. According to the law, any actions must be done within 30 days.
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: 20259
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? No cost 0.5
    Link for online access: http://xgis.maaamet.ee/maps/XGis
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access: http://geoportaal.maaamet.ee/eng/
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 8.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? Yes 2.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 7.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Notary.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Harju County Court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Less than a year 3.0
    Are there any statistics on the number of land disputes in the first instance? Yes 0.5
    Number of land disputes in the largest business city in 2015: 575 cases in property law, total number of civil cases 30703.
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0