ESTONIA
This Northern European country located in the Baltic Sea region has been a member of the European Union since 2004 and a member of the eurozone since 2011. Despite its small territory, the country is considered attractive for the registration and purchase of companies by non-residents, providing a liberal tax system and ease of doing business.
The following types of commercial real estate are among the main investment properties in Estonia: storage facilities, office and shopping centers, rental hotels and apartments, restaurants, development projects.
The minimum annual rate of return is 4%, and the estimated annual rate of return 10% to 15%. On average, the net annual return on investment in commercial real estate is 7 to 10%. This indicator is higher than in Central or Western Europe. The annual return on investment in residential real estate is 4% to 6%.
- Strong legislative framework and judicial independence resulting in a low level of corruption;
- Stable and predictable financial and tax policy of the country, highly competitive tax system compared to other European countries;
- Ease of doing business and opportunities for expanding business in the EU;
- In the Estonian bank capital share, Scandinavian banks have more than 80%, which positively affects the sustainability of the banking system;
- The government has entered into double taxation agreements with 60 countries.
- The Estonian real estate market has an average capacity, but is rather dynamic;
- Investment /reinvestment tax is 0%;
- Projects and investments are mostly located in the capital, Tallinn, the population of which has been growing for a long time and makes up 1/3 of the total population of the country;
- In Estonia, various types of commercial real estate are in high demand, which contributes to an increase in market offers and investment opportunities for investors.
- The tax rate on retained earnings is 0%;
- The debt to GDP ratio is 9.5% (the smallest risk of sovereign default in the world);
- The unemployment rate is 5.6%;
- The country is ranked 12th among 190 countries by ease of doing business;
- The country is ranked 22nd among 176 countries by the level of perception of corruption;
- The country is ranked 41st among 186 countries by per capita GDP at purchasing power parity;
- Private and commercial mortgage loan interest rates are from 2% per annum;
- Advanced information infrastructure (e-government, banking, residency, business and public services);
- Transparent and simple legislation and taxation;
- Relatively low transaction costs.
EUROPEAN PROPERTIES
- Ashmoregrupp presence since 2014
- Population: 0
- Average cost of 1 m2 : € 0
- Real estate market profitability: 0%
The Ashmoregruppe branch network enables us to identify the most attractive real estate opportunities in key markets and to close the best deals for our customers.