Estonia Plans to Restrict Property Purchases for Russian and Belarusian Citizens
ERR
Estonian authorities plan to ban Russian and Belarusian citizens without permanent residency from purchasing real estate in the country, ERR reports. The new restrictions are being justified by potential security risks. They are also intended to prevent influence from what officials describe as “hostile states.” The law is expected to come into force on January 1, 2027.
Who Will Be Affected by the Restrictions in Estonia
Estonia’s Ministry of the Interior has prepared amendments to the law regulating restrictions on real estate acquisitions. The explanatory note states that the purpose of the changes is to limit the possibility of using property for intelligence activities, influence operations, or sabotage directed against Estonia.
The draft introduces a legal mechanism allowing the government to designate states that pose a threat to security or public order. Russia and Belarus are included on the list. Citizens of these countries may be prohibited from purchasing property in Estonia. The restrictions will also apply to apartment ownership, which had previously been only partially covered by the law.
The proposal also aims to close loopholes that allow restrictions to be bypassed through companies registered in Estonia or in countries of the European Economic Area. To achieve this, the definition of beneficial owner would be clarified, and authorities would be required to verify the citizenship of beneficial owners.
Exceptions and Control Mechanism
The ban would not be retroactive and would not affect transactions already completed. It would also not apply to Russian and Belarusian citizens holding long-term or permanent residence permits in Estonia, as their background has already been sufficiently reviewed by the state, the explanatory note says.
In certain cases, the government would retain the right to grant permission to purchase property for humanitarian reasons or for matters considered important to the state.
The Ministry of the Interior states that the draft complies with Estonia’s Constitution and European Union law. The explanatory note describes the measure as a “moderate and legitimate” restriction aimed at protecting national security. It also notes that the EU allows restrictions on the free movement of capital for reasons of public order and security.
According to the authors of the initiative, the restrictions would affect only around 600 transactions per year and are therefore not expected to have a significant impact on Estonia’s property market.
Official data shows that as of April 2025, Russian citizens owned 36,952 properties in Estonia, while Belarusian citizens owned 896. As of January 9, 2026, Estonia had 7,797 Russian citizens with temporary residence permits and 70,237 with permanent residence permits. Among Belarusian citizens, 1,476 held temporary residence permits and 1,190 held permanent residence permits.
Background and Outlook
This is not the first time Estonian authorities have advanced such an initiative. In 2023, similar measures were proposed by the EKRE party, but the government led by Kaja Kallas did not support the proposal. In 2024, the idea was reintroduced by former Interior Minister Lauri Läänemets, and the concept was approved, but the law was never adopted.
The latest draft appeared in early 2026. Analysts at International Investment believe suggest that the proposal has better chances of being implemented due to regional trends. Finland, Latvia, and Lithuania have already tightened property purchase rules for citizens of third countries on security grounds. If current geopolitical conditions persist, further restrictions remain possible.