Use of regular assessment results
Assessment results are used in land taxation, usage agreements, determining utility network fees, transactions, and financial reporting.
The most important area of application for the results of regular land valuation is taxation, which is also reflected in the name of the value determined as a result of the valuation, i.e. "taxation value." Land value is an important component of land tax.
Land tax = taxable value (€) x tax rate (%) - growth restriction - tax incentives and exemptions
Local governments set tax rates by July 1 of the year preceding the tax year.
For questions regarding taxable land data and land tax rates, please contact your local municipality. Contact details can be found on the land tax notice. For questions regarding the payment of land tax and the calculation of the protection mechanism, please contact the customer support of the Tax and Customs Board at [email protected].
The results of previous regular land assessments have been used in land reform activities – privatization, compensation, and long-term agreements concluded for land use (building rights, usufruct). Therefore, thousands of usage agreements concluded during the land reform, or lease agreements in economic terms, are linked to the taxable value of land.
Usage fee (rent) = land value (€) x usage fee rate %
The taxable value of land is used as the basis for determining the technical network tolerance fee.
Tolerance fee (€/year) = land value (€) x tolerance fee rate (%) x scope of restriction.
The taxable value calculated as a result of regular land valuation can be used for simpler transactions and smaller amounts (e.g., road easement agreements, compulsory possession fees, land consolidation). This primarily concerns land in active markets, such as the establishment of road easements.
Traditionally, the valuation of land plots covered by roads or parks has been difficult even for professional appraisers due to the lack of market information, while the transaction amounts involved in establishing road easements are small compared to the cost of commissioning an appraisal. Therefore, it is necessary to consider whether it is reasonable to spend time and money on commissioning an appraisal or whether the results of a regular land appraisal can be used.
When using the results of regular appraisals in transactions, it is important to specify the following:
- Regular land appraisals do not take into account the impact of forests, buildings, and other significant elements on the value of the land, which means that the taxable value does not reflect the total value of the immovable property. Similarly, mass appraisal does not take into account the best use, land use restrictions, third-party rights and obligations, and in most cases also zoning plans (except for parts of Tallinn and Tartu), which means that the taxable value cannot be considered as the market value and may differ significantly from it.
- The results of a regular land valuation are not as accurate as those of a valuation commissioned from a professional appraiser, but they provide an initial indication of the market value of the land and help to decide whether or not to commission a valuation.
The taxable value of land is one way of reflecting the value of land in financial reporting. Regular land valuation follows the principles of objectivity and conservatism, similar to financial reporting.
Private sector companies may also consider using the taxable value of land as the balance sheet value of land they own, thereby saving on the costs of ordering appraisals.
When using the results, it is important to note that the results of regular land valuation do not reflect the value of buildings and biological assets.
Assessment methodology
- Regular land valuation is carried out on the basis of the Land Valuation Act.
- The methodology for regular land valuation has been approved by a regulation of the Minister of the Environment.
- Automatic valuation models created for this purpose are used in the valuation.
- Only land is valued; growing forests and buildings are not valued.
- The assessment is based solely on data from databases; no on-site inspections are carried out.
- The assessment is based on data on real estate purchase and sale transactions, data describing the land in the land register and other databases, and data necessary for real estate market analysis.
Location classes
In order to take location into account, all plots of land in Estonia have been divided into eight location classes with similar value levels, primarily on the basis of residential land transaction prices. Division into location classes is necessary in order to make distinctions in the valuation methodology, as the market functions slightly differently in different regions. The valuation results do not have to remain within the value ranges of the location classes.
In addition to location, land use is a very important factor influencing value. Land use determines the factors that influence value and how land is valued, i.e. the valuation model used to calculate value in a regular valuation.
5 assessment models
- The assessment is carried out using automatic assessment models.
- The choice of assessment model is also automatic and depends on the intended use of the cadastral unit.
- In the case of agricultural land, the soil type (natural composition of the land) is also important, and in some cases the model also depends on the location class.
- For example, national defense land in location classes 1–3 is assessed as building land (buildings similar to office or production buildings), and in location classes 4–8 as active market land (there is no market for such land).
The building land model is used to value residential, commercial, and industrial land. It is also used to value land for public buildings, mining land, and national defense land in large cities, using a correction factor of 0.5, which takes into account that this is land necessary for the functioning of society.
The building land model is a statistical model used to calculate the initial value of undeveloped residential land when analyzing transactions and to adjust it based on the impact of two factors: area and proximity to water bodies.
The initial value is the expected value per square meter of land with an area of up to 1,000 m² located away from bodies of water. The initial value is calculated based on an analysis of the region and the 10 most recent transactions.
An area exceeding 1,000 m² reduces the initial value of the plot. Different adjustments are applied to different location classes and different area ranges. The figure shows, by location class, what percentage of the initial value is represented by the square meter value for a given area.
The proximity of a body of water increases the initial value of a plot of land. The extent and magnitude of the impact varies depending on the location class and the type of body of water.
A body of water is considered to be nearby if the boundary of the plot of land is closer to the body of water than the distance in meters shown in the figure "Extent of the impact of the body of water on the construction site." The magnitude of the impact is calculated by adding the percentage shown in the figure "Magnitude of the impact of the body of water on the construction site" to the initial value.
The construction land model is not applied in the first location class; there, the value is determined using the construction right model, which is why the water body factor is not applied either. Similarly, there is no contact with Lake Peipsi and Lake Võrtsjärv in the fourth location class. Small lakes are considered to be water bodies with an area of at least 10,000 m², which are classified as lakes, dam lakes or artificial lakes in the Estonian Topographic Database (ETAK). Rivers are considered to be sections of watercourses that are at least 8 m wide, have an area of at least 800 m² and are referred to as rivers in ETAK.
The factors used in the valuation of building land have been developed as a result of expert assessments by professional appraisers, testing the valuation results and comparing them with market prices. These were initially replaced by automatically calculated factors.
In addition to area and proximity to water bodies, other factors that were not taken into account in the valuation were also analyzed: public road access factor, center factor, and construction restriction zone factor. These factors were not included because, due to the quality of the source data, it was not possible to guarantee the accuracy of the measurement methodology, the impact was not statistically significant, the impact relationship was illogical, or the impact was too weak (less than €0.01/m²).
If the value of the building land calculated using the model is lower than the lowest value level of the location class of the plot, the lowest value level of the location class, i.e. the value per square meter of active market land, is applied. Except for location classes 7 and 8, where the lower limit of the building land value level of €0.30/m² is applied.
In the central areas of Tallinn and Tartu, the main factor affecting the value of building land is building rights. There, value is determined not by square meters of land, but by square meters of building rights, because what matters more than the size of the plot is how much can be built on it or has already been built.
The value of land is calculated by multiplying the area of the building right by the square meter value of the settlement or part of the settlement.
The area of the building right is determined by the local government as the gross floor area (GFA) of buildings based on detailed planning or building register data.
- If the area of the building right exceeds 500 m², a value-reducing adjustment of 0.02 per 1000 m² is applied to the excess area, up to an adjustment of 0.7.
- An adjustment of 0.6 is applied to the building right area between 50,001 and 100,000 m², and an adjustment of 0.5 is applied to the building right area of 100,001 m² and above.
The SBP values of the building rights of a settlement (part) are assessed by professional real estate appraisers based on an analysis of land and apartment sales and rental transactions.
If the area of the building rights cannot be determined, the value of the land plot is assessed based on the value per square meter of building land. For this purpose, professional appraisers have also assessed the minimum values per square meter of building land for the settlement (parts). The value of the plot is calculated by multiplying the area of the plot by the value of the land in the settlement (part), applying adjustments to the area of the building land model. The value calculated per square meter of land is also the result of the valuation if the value of the plot of land determined through building rights is lower than the value determined through the value of the land.
The agricultural land model is used to assess arable land. It also assesses natural grassland, but uses a correction factor of 0.5, which takes into account the difference in value between natural grassland and arable land.
The agricultural land model is a statistical model used to calculate the initial value when analyzing transactions involving arable land and to adjust it according to the impact of various factors.
- The initial value is the expected value per square meter of a plot of land if the plot is accessible, the proportion of permanent grassland used by the Agricultural Registers and Information Board (PRIA) is 0, the proportion of excessively wet soil limiting cultivation is 0, and the plot has average values for other parameters. The initial value is calculated on the basis of an analysis of transactions throughout Estonia and the 10 nearest transactions.
- The soil fertility factor expresses the weighted average soil fertility value (bonitet) of the plot being valued. The higher the soil fertility, the higher the unit value of the plot. If it is not possible to determine the soil fertility factor due to a lack of data, the average soil fertility factor for Estonia is applied.
- The PRIA permanent grassland ratio, or land use factor, indicates the proportion of the plot that is registered as permanent grassland with the PRIA. The higher the permanent grassland ratio, the lower the unit value of the plot.
- The proportion of excessively wet soils, or the excess moisture factor, expresses the proportion of soils that are excessively wet and restrict cultivation. The higher the proportion of excessively wet soils, the lower the unit value of the plot.
- The area factor for agricultural land means that the larger the land unit being valued, the higher the value per square meter of the land unit, and vice versa: the value of agricultural land units with an area smaller than average is lower.
- The accessibility factor, or road frontage factor, indicates whether the plot borders a road. Lack of road access reduces the value of the plot.
- The selection bias correction factor shows how much the land being valued differs from the land that is usually traded. Unregistered and uncultivated farmland is valued lower than farmland that is eligible for subsidies and has been cultivated. This is applied to avoid overvaluation of assets with lower liquidity.
All factor values in the agricultural land model are calculated automatically.
Other factors that were not taken into account in the valuation were also analyzed: settlement factor, agricultural building factor, and compactness factor. These factors were not included because their impact was not statistically significant, the relationship between the impact and the value was illogical, or the impact was too weak (less than €0.01/m2).
If the value calculated using the agricultural land model is lower than the lowest value level, the assessment result is the lowest value level (€0.04/m2).
- The forest land model is used to assess land registered as forest land in the land register. When assessing forest land, only the value of the land is taken into account, not the forest growing on it.
- The value of forest land is calculated by multiplying the base value by the quality factor.
- Each forest compartment is assessed separately and the results are then added together. The area is not adjusted.
The base value of forest land is the average price of forest land sales transactions. The transactions were checked by comparing historical satellite images and transaction dates to ensure that the set of transactions used in the analysis consisted only of clear-cut areas. Based on the sales transactions, the base value of forest land was determined to be €0.1883/m2 (€1883/ha).
It is necessary to take quality factors into account, as not all land is equal. Quality factors reflect the productivity of the forest stand in question compared to average forest land, taking into account the type of forest growth site, forest land bonitet, and land improvement (drainage). Quality factors have been determined in cooperation with forest experts.
If the forest land has not been fully inventoried and there is no data in the forest register, the average quality factor of the settlement unit is applied to the uninventoried forest land (if the forest register contains data on at least 10 forest compartments in that settlement unit) or the average quality factor of the local government (if the forest register contains data on fewer than 10 forest compartments in that settlement unit) shall be applied to the uninventoried forest land.
The value of forest land may be reduced by various restrictions.
- A coefficient of 0.5 is applied to forest land located in areas subject to nature conservation restrictions. Nature conservation restrictions include: conservation areas, protected areas, local government protected natural objects, individual nature conservation restricted areas, permanent restricted areas, and coastal restricted areas.
- The part of the forest land that falls within the area of strict nature conservation restrictions is assessed at the lowest value level (€0.04/m2). Strict nature conservation restrictions include: managed restricted area of a protected area, natural restricted area of a protected area, nature reserve of a protected area, restricted area of a permanent habitat.
If the value calculated using the forest land model is lower than the lowest value level, the assessment result is the lowest value level (€0.04/m2).
Land without an active market is land that is not customarily bought or sold and on which, as a rule, development is generally not possible:
- transport land,
- waste storage land,
- public land,
- water body land,
- protected land,
- land without a designated purpose,
- agricultural land other land and
- national defense land outside cities.
When valuing active market land, the lowest value level of the location class corresponding to the location of the plot is used as a basis. The lowest value level of the location class is determined as a result of analysis. No market transactions are made at a lower price in this location class.
| Location class | Lowest value of location class |
|---|---|
| 1 | 40,00 €/m2 |
| 2 | 10,00 €/m2 |
| 3 | 4,00 €/m2 |
| 4 | 1,00 €/m2 |
| 5 | 0,70 €/m2 |
| 6 | 0,30 €/m2 |
| 7 | 0,10 €/m2 |
| 8 | 0,04 €/m2 |
Results of the 2022 regular assessment
The taxable value of each plot of land can be viewed on the assessment page of the website minu.kataster.ee. You can find the cadastral unit you are interested in by its address or cadastral code. The taxable value of land (the basis for land tax in 2024) is the taxable value valid on January 1.
If the basic data of a plot of land (e.g., shape, intended use) has changed after January 1, the taxable value of the land is automatically recalculated. In certain cases, the taxable value of land may be treated as the value of land in accordance with the provisions of legislation.
Frequently asked questions
On the website minu.kataster.ee, under the heading "Land value information," there is a link called "Land tax value," which directs you to the land valuation page. On the valuation page, you can open various sections and see the factors used in the valuation model and their impact. Each factor also has an "i" next to it, which explains what the factor is.
In the assessment, land is divided into four groups according to its intended use, i.e. four main assessment models are applied:
- The building land model is used primarily to assess residential land, commercial land and industrial land, but also agricultural land, farmyards and other land intended for construction.
- The agricultural land model is used to assess arable land and natural grassland on agricultural land.
- The forest land model is used to assess forest land on agricultural land.
- The active market land model is used to assess transport land, waste storage land, public land, and other land that is not normally traded on the market.
In addition, the building rights model is used to assess building land in the central areas of Tallinn and Tartu. Building rights are also an important factor affecting value elsewhere, but due to the lack of machine-readable detailed planning data, it was not possible to use them more widely in the 2022 valuation. The regular valuation of land is a mass valuation, the result of which is a statistical generalization.
During the regular land valuation process, the taxable value of each plot of land is determined based on the characteristics of that particular plot.
The choice of valuation model depends on the intended use of the cadastral unit and the location class of the plot. For agricultural land, the choice of valuation model also depends on the soil type (the natural composition of the plot).
Differences in the value of plots may result from different valuation models, different location classes, but also from factors taken into account in a specific model (e.g., differences in area). The factors taken into account and their impact can be found on the valuation sheet. It is important to note that land valued using different valuation models cannot be compared with each other, as the value of land with different uses is determined differently. For example, the value of two plots of land with similar characteristics may differ several times if one plot is intended for residential use (assessed using the building land model) and the other for agricultural use (assessed in up to four different parts using up to four different models).
Residential land is valued using the building land model. The building land model is a statistical model used to calculate the initial value of undeveloped residential land transactions and adjust it based on two factors: area and proximity to water bodies.
In addition to area and proximity to water bodies, other factors that were not taken into account in the valuation were also analyzed: public road access factor, center factor, and construction restriction zone factor. These factors were not included because, due to the quality of the source data, it was not possible to guarantee the accuracy of the measurement methodology, the impact was not statistically significant, the impact was illogical, or the impact was too weak (less than €0.01/m²).
Other factors were not analyzed in more detail because, in the opinion of the appraisers, the factor did not have a significant impact on land value or there was no machine-readable database covering the whole of Estonia for the factor.
The building land model is used to assess land (intended uses) where construction is generally permitted. When developing the building land model, the use of building restriction zones was considered, but the analysis showed that if it is possible to build on part of a plot of land, this does not significantly reduce the value of the plot. If it is not possible to build on a plot of land, we recommend contacting the local government to review the intended use data.
Agricultural land is assessed during regular land valuation using different valuation models according to the types of land located on the plot. A plot may contain up to five different types of land, which are assessed using four different models:
- forest land, which is assessed using the forest land model,
- yard land, which is assessed using the building land model,
- arable land and natural grassland, which are assessed using the agricultural land model,
- other land, which is assessed using the active market land model.
The results of the different parts to be assessed are added together.
The forest land model is used to assess the suitability of agricultural land for forestry, based on land registered as forest land in the land register. When mapping the suitability of forest land, the density of the canopy and the height of the trees are important factors.
The forest land model is used to assess land registered as forest land in the land register. When assessing forest land, only the value of the land is taken into account, not the forest growing on it.
Forest land is assessed on the basis of the forest management plan by forest compartment, and the results are added together. The value of each forest compartment is calculated as the product of the base value and the quality factor. The area is not adjusted.
The base value of forest land is the average price of sales transactions for forest land without trees. The transactions were checked by comparing historical satellite images and transaction dates to ensure that the set of transactions used in the analysis consisted only of clear-cut areas. Based on sales transactions, the base value of forest land was €0.1883/m² (€1883/ha).
It is necessary to take quality factors into account, as not all land is equal. Quality factors reflect the productivity of the forest stand in question compared to average forest land, taking into account the type of forest growth site, forest land bonitet, and land improvement (drainage). Quality factors have been determined in cooperation with forest experts.
If the forest land has not been fully inventoried and there is no data in the forest register, the average quality factor of the settlement unit is applied to the uninventoried forest land (if there is data on at least 10 forest compartments in the forest register for that settlement unit) or the average quality factor of the local government (if the forest register contains data on fewer than 10 forest compartments in that settlement unit).
The value of forest land may be reduced by various restrictions.
- The following restrictions are considered nature conservation restrictions: conservation area, protected area restriction zone, local government protected natural object, individual nature conservation object restriction zone, permanent habitat restriction zone, beach restriction zone. A coefficient of 0.5 is applied to the part of the forest land that falls within the nature conservation restrictions.
- The following restrictions are considered strict nature conservation restrictions: managed conservation area, natural conservation area, nature reserve, permanent conservation area. The part of the forest land that falls within the area of strict nature conservation restrictions is assessed at the lowest value level (€0.04/m²).
If the value calculated using the forest land model is lower than the lowest value level, the assessment result is the lowest value level (€0.04/m²).
If the value calculated using the forest land model is lower than the lowest value level, the assessment result is the lowest value level (€0.04/m²).
If an error occurs, the data can always be corrected.
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Last updated: 08.12.2025
